Australian and New Zealand exporters are set benefit from the full implementation of zero tariffs on dairy products under longstanding free trade agreements with Thailand. This marks the culmination of a 20-year phased tariff reduction, opening the door for significant expansion into one of ASEAN’s most dynamic dairy markets.
The Thailand-Australia Free Trade Agreement (TAFTA), signed in 2004, and the Thailand-New Zealand Closer Economic Partnership (TNZCEP), signed in 2005, have progressively eliminated tariffs on a range of goods. From January 1, 2025, whole milk, butter, cheese, and other key dairy products enjoy duty-free access to Thailand.
This development presents an unprecedented opportunity for exporters to cater to Thailand’s growing demand for premium dairy products. Australian and New Zealand dairy products, known for their high quality, are well-positioned to meet this demand and expand market share in a region where Thailand is already a leading player in dairy trade.
Thailand’s dairy imports from these countries have seen significant growth, reflecting a clear appetite for high-quality products. Between 2017 and 2020, imports of dairy products from Australia and New Zealand surged nearly sixfold, from 6,835 tons to 39,415 tons. This upward trend is likely to accelerate with the elimination of tariffs.
Given Thailand’s role as the largest exporter of dairy products in ASEAN and the seventh largest globally, there is also potential for collaboration. Exporters from Australia and New Zealand can explore opportunities to supply high-quality raw materials to Thai processors, contributing to the region’s growing dairy industry.
(Source: The Nation Thailand)
