Three Years On, Has TAFTA Delivered Against Expectations?
As a Commercial Advisor during the critical development phase of TAFTA, Graham Storah, Managing Director of L-TAG Technologies Co. Ltd., played an integral role in formulating terms for the achievement of mutually beneficial trade objectives for the two nations.
While the Agreement clearly delivered enhanced exports to both nations, respectively AUD1.3bn increase for Australia (mainly copper, iron & steel), and AUD2.9bn for Thailand (dominated by motor vehicles) by 2006, Mr Storah is not convinced that Australia is getting a totally fair deal.
To illustrate this, he cites the dramatic imbalance in trade in elaborately transformed manufactures, in favour of Thailand. While it would be irresponsible of Thai authorities not to seek the best possible outcomes for their nation, Mr Storah takes the view that the umpire all too often appears to take a soft stance on perceived unfair Thai import classifications; non-harmonised tariff codes. This sometimes less than supportive positioning of the umpire in Thailand, effectively kills off countless export initiatives from Australia. Mr Storah has unsuccessfully attempted several such trade initiatives himself, and is aware of many more.
With the notable exception of Education, all of this tends to reinforce global perception of Australia as a raw commodities exporter.
Mr Storah is a passionate advocate for value-added exports from Australia, and is not reluctant to voice that view. But, he explains, it takes genuine innovation and smart thinking to overcome the non-tariff barriers on Australian non-commodity exports to Thailand.
Examples of this kind of innovation include:
- Australian exporters of “like products”, banding together (much like the successful model of agricultural cooperatives) to consolidate freight and undertake import handing/distribution in Thailand.
- Identifying Australian businesses that fit with Thailand’s declared priority industry sectors, such as environmental, biotechnology, energy, water. For example, under the strong identity branding of Loxley Climate Solutions, L-TAG Technologies is currently bringing together a range of outstanding Australian companies to deliver Green Technology processes & products (eg lightweight structural concrete) to Thailand; www.ltagtech.com
A visionary who never accepts the status quo, Mr Storah is demonstrating that serious Australian export initiatives can become reality, despite TAFTA’s less than equitable performance.
Bangkok Base is proud to be a close associate of L-TAG Technologies, and through its range of corporate services, plays a key role in enabling the smooth establishment of business initiatives in Thailand.
Read more about the Thailand Australia Free Trade Agreement:
Australian Department of Foreign Affairs and Trade TAFTA
Read more about Graham Storah.
The Thais that bind the Thailand Australia Free Trade Agreement