When the Thailand–Australia Free Trade Agreement (TAFTA) was concluded, many dismissed it as largely irrelevant to the day-to-day business decisions of Australian companies in Thailand. Recent developments in Thailand may, however, make the TAFTA an important safeguard for Australian companies doing business in the Thai market.
Recent media reports have suggested that Thailand's military-backed government is proposing new restrictions on foreign investment. These restrictions could have serious implications for Australian investors in the country, such as gold mining company Kingsgate Consolidated Limited, steel manufacturer Bluescope Steel Limited and insurance and financial institution QBE Insurance.
The TAFTA's Investment Chapter provides protections for the way investments are treated once established, and provides rights to investors to initiate dispute settlement proceedings against measures imposed by Thailand.
The TAFTA is just one of a wide range of international treaties that deal with investment to which Australia is party. The investor–state dispute settlement provisions of these agreements have not, to date, been used by Australian investors. Nonetheless, with the imposition of measures such as those proposed by Thailand, Australian investors should be taking the lead of investors overseas and considering their options under the relevant international treaties.
The content of this article is intended to provide a general guide
to the subject matter. Specialist advice should be sought about your
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
CIVs will have flow-through status for tax purposes and similar criteria as the MITs, to encourage foreign investment.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).