Part 6: International Business Profile of Thailand

Part 6: International Agreements with Thailand 

 

Most important Trade Agreement between Canada and Thailand

The most important trade agreement between Thailand and Canada is the ​Association of
Southeast Asian Nations, also known as the ​ASEAN free trade agreement (Government of
Canada, 2020). This agreement was formed in 1967 to bring neighbouring countries together to
help acknowledge and address political, economical, and security issues. Canada became an
ASEAN partner in 1977 which helped develop a very propitious relationship between the two
countries. In fact, ASEAN is Canada’s sixth-largest trading partner.

Figure 1: Building Relationships with ASEAN. :[Photograph of ASEAN and Canada celebrating the 40th
anniversary]. ​https://www.vancouvereconomic.com/building-relationships-with-asean-2/

International Trade Organizations 

The World Trade The World Trade Organization (WTO) promotes trade
Organization liberalization throughout to help improve economic prosperity
and social development (Guest & Raposa, 2018).

Thailand has been a member of the WTO since it was formed

on January 1, 1995. Thailand has also been a member of GATT
Part 6: International Business Profile of Thailand
The Organization for
Economic Co-operation and
Development
The World Bank Group
The International Monetary Fund
(IMF)
since November 20, 1982 (World Trade Organization [WTO],
2020). As a member of the WTO, Thailand had notified the
WTO’s committee to do a thorough investigation on aluminum
foil to help seek if imports are found to cause serious injuries or
damage (WTO, 2020).
The Organization for Economic Co-operation and
Development (OECD) is a trade organization that aids in the
advancement of democracy and market economies (Guest &
Raposa, 2020).
Thailand has been the first Southeast Asian country to be a
member of OECD by participating in the OECD country
programmes in 2018 (Organisation for Economic Co-operation
and Development [OECD], 2020). As a member of the OECD,
Thailand has contributed to assembling a project named,
‘Immigrants Contribute to Thailand’s Economy’, that analyzes
the economic impacts on the labour market, economic growth
and also public finance (OECD, 2020).
The World Bank Group is an organization that consists of 189
countries that provides support to developing countries. The
goal of the World Bank is to end poverty and to promote
prosperity (Guest & Raposa, 2020).
Thailand has been a member of The World Bank Group since
May 3, 1949 (The World Bank, 2020). As a member of The
World Bank, Thailand has benefited in ways that have helped
shape its country to become a better environment for the
current and potential residents. The World Bank has aided in
building basic infrastructure which has helped with commercial
activity in Thailand (The World Bank, 2020).
The International Monetary Fund (IMF) is an organization that
tracks economic trends, analyzes countries financial
performances, helps notify the government of any potential
financial issues, and helps with government expertise (Guest &
Raposa, 2020).
Thailand has been a member of The International Monetary
Fund since May 3, 1949 (​The International Monetary Fund ​[IMF],
2020). As a member of the IMF, Thailand has benefitted from
this by becoming a member of numerous programs associated
with the IMF which has helped Thailand with economic trends
and financial issues.
Part 6: International Business Profile of Thailand

Most Important Trading Partner 

According to Workman (2020), Thailands most important and biggest trading partner is the
United States (followed by China, Japan and Vietnam). However, the trade agreement which
Thailand and the United States have signed in 1966 named the Treaty of Amity and Economic
Relations, enables the United States and Thailand’s companies to access one another’s markets.
Further, this treaty helped Thailand become more engaged in the business world and develop
into becoming a more diversified economy (Hart, 2017).

In comparison to the United States, Canada trades a much larger amount of goods and services to
Thailand. This particularly shines light on the idea that Canada has a better trade system with
Thailand and this will benefit Canada in a positive way (Government of Canada, 2020).
Additionally, Canada is Thailand’s second-largest trading partner in the ASEAN region of goods
and services (Government of Canada, 2020). Both of these facts propounds that Canada’s trade
relationship with Thailand is not at risk due to Thailand’s trade relationship with the United
States. In fact, according to CABC, the Canadian and Thai economies are presented to be equally
strong sectors for collaboration which can be pursued instantly (CABC, 2019).

​ ​Figure 2:[Best Business Practises In Thailand]. ​_______________

________________​https://m360.sim.edu.sg/article/Pages/Best-Business-Practices-in-Thailand.aspx
Part 6: International Business Profile of Thailand

References

U.S. Department of State. (2020, May 7). ​U.S. Relations with Thailand
_____​https://www.state.gov/u-s-relations-with-thailand/#:~:text=Thailand%20is%20currently%2
____ ​0the%20United,access%20to%20one%20another's%20markets​.

Hart, B. (2017). ​The US-Thai Treaty of Amity: Implications for Thai Business Incorporation
​https://thailawonline.com/en/business/treaty-of-amity-thai-usa.html

Workman, D. (2020). ​Thailand’s Top Trading Partner

_____​http://www.worldstopexports.com/thailands-top-import-partners/

The World Bank. (2019, May 7). ​70 Years in Thailand: From Traditional Development to
_____​Innovative Knowledge Partners
_____​https://www.worldbank.org/en/news/feature/2019/05/07/70-years-in-thailand---from-tradit
_____​onal-development-to-innovative-knowledge-partners

OECD. (n.d.).​ Bringing Southeast Asian countries closer to the OECD

_____​http://www.oecd.org/southeast-asia/countries/#:~:text=Thailand%20became%20the%20fir
_____​st%20country,Agency%20(IEA)%20since%202015​.

Government of Canada. (2020, October 2). ​Canada and the Association of Southeast Asian
Nations (ASEAN)
_____​https://www.international.gc.ca/world-monde/international_relations-relations_internation
_____​ales/asean/index.aspx?lang=eng

Gnanasagaran, A. (2018, May 10). ​ASEAN-Canada, an underrated relationship.

_____​https://theaseanpost.com/article/asean-canada-underrated-relationship

World Trade Organization. (2020). ​Thailand and the WTO.

_____​https://www.wto.org/english/thewto_e/countries_e/thailand_e.htm

CABC. (n.d.). ​Canada and Thailand: A Look Forward at the Economic Opportunity.
_____​https://www.canasean.com/canada-and-thailand-a-look-forward-at-the-economic-opportun
_____​ity/
Part 6: International Business Profile of Thailand
Part 6: International Business Profile of Thailand
Part 6: International Business Profile of Thailand