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Thailand has returned to calm after a torrid first half of 2010 that saw “Red Shirt” protesters locked in conflict in central Bangkok with the Thai Government. The protesters, supporters of ousted former Prime Minister Thaksin, were seeking dissolution of parliament and new elections. The protest presence was ended in May by armed force. At least 88 people were killed in the violence and more than 1800 were injured, and some 30 buildings were burned. A “reconciliation roadmap” has been put in place by the Thai Government to try to overcome some of the social divisions that led to the protests.
Official Name: Kingdom of Thailand
Land Area: 514,000 sq km
Population: 65.4m (Dec 2007)
Capital City: Bangkok
Religions: Buddhism – 95% of population, but also Islam, and Christianity
Language: Thai
Currency: Thai Baht
Exchange Rate: NZ$1 = 22.89 Baht (July 2010)
Political system: Constitutional Monarchy
National government: Under the Constitution the Prime Minister is an elected member of the House of Representatives.
Last election: Senate 2 March 2008
House of Representatives: 23 December 2007
Head of State: His Majesty King Bhumibol Adulyadej
Prime Minister:Mr Ahbisit Vejjavida
Key Ministers:
Finance: Mr Suchart Thadadamrongwej
Defence: Mr Somchai Wongsawat
Foreign: Mr Sompong Amornvivat
Commerce: Mr Chaiya Sasomsab
Education: Mr Srimuang Charoensiritop of page
GDP (ppp):US$538.6 billion (2009 est)
GDP percapita (ppp):US$8100 (2009 est)
Real GDP growth:Minus 2.8% (2009 est)
Exports (fob):US$154.2 billion (2009 est)
Imports (fob):US$119 billion (2009 est)
Main exports: Textiles and footwear, fishery products, rice, rubber, jewellery, automobiles, computers and electrical appliances
Current account balance: US$18.01 billion (2009 est)
Inflation:Minus 0.9% (2009)
NZ Total Exports (FOB):NZ$533 million (year ended June 2010)
Main Exports:Milk powder, crude oil, malt extract, butter milk, wood pulp, timber, butter, apples, casein, cheese.
NZ Imports (CIF):NZ$1.21 billion (year ended June 2010)
Main Imports:Trucks and vans, other motor vehicles, air conditioning machines, polymers of ethylene, washing machines, caviar, computers, rice, plastic products, tyres.
Services Trade: There were 19,800 visitors from Thailand in the year to June 2007. There are approximately 4,500 Thai students currently studying in New Zealand.
New Zealand's relations with Thailand date from the 1950s. The relatively narrow security/alliance dealings of the Southeast Asian Treaty Organisation (SEATO) years have been replaced by a broad based relationship with rapid growth in people to people links.
Both countries share similar perspectives on regional political and security issues. Extensive cooperation exists in multilateral (WTO) and regional fora (APEC, ASEAN Regional Forum, and East Asia Summit).
Thailand is an important export market for New Zealand. In the year ending June 2008, New Zealand exports amounted to NZ$812 million, and imports for the same period were valued at 1.24 billion.
New Zealand's bilateral aid programme in Thailand ceased formally in July 2004 when the Prime Ministers of both countries announced that a new relationship based on regional partnership would be developed. There is growing informal interaction between the New Zealand Aid Programme and Thailand International Cooperation Agency (TICA), the aid agency in Thailand, as areas of mutual interest and cooperation are explored.top of page
North East Thailand was one of the earliest centres of civilisation in South East Asia. The country grew with people migrating from China (Yunnan), Myanmar (Mon) and Cambodia (Khmer). The Kingdoms of Sukhothai (until 1438) and Ayutthaya (destroyed by the Myanmarese in 1767) laid the foundations for the emergence of the Chakri dynasty in the late eighteenth century.
A coup d’etat in 1932 ended the absolute monarchy of the earlier Chakri dynasty and was replaced by a constitutional monarchy. Thailand, the “Land of the Free”, is the only country in South East Asia never to have been colonised. The military had a strong involvement in running the country up until the 1990s. Student and civilian clashes with the military from the early seventies to 1991 underpinned the development of civil society in Thailand which culminated in the 1997 Constitution. This has been replaced by the 2007 Constitution which, like its predecessor, enshrines the primacy of elected parliamentary government.
The King is Head of State and Commander-in-Chief of the armed forces. His Majesty King Bhumibol Adulyadej ascended the throne in 1946 and in June 2006 he celebrated 60 years on the throne. He is the world’s longest-serving monarch, is much loved by the Thai people and retains immense prestige and moral authority.
top of pageThailand has undergone a major political upheaval of late, with former Prime Minister Thaksin Shinawatra being overthrown in the September 2006 military coup. National democratic elections were held on 23 December 2007 and the new Thai parliament (led by the Peoples’ Power Party (PPP)) convened on 21 January 2008. However, despite the return to constitutional normalcy in Thailand, political uncertainty prevails with protest activity, underway since August 2008, intensifying in recent weeks. The protests are being led by the Peoples’ Alliance for Democracy (PAD), which consists largely of middle and upper-class people from Bangkok and the South. The PAD is calling for the resignation of the government and for constitutional reforms (“new politics”) which would weaken the rights of the electorate and strengthen the power of the traditional elites. Prime Minister Samak resigned on 9 September 2008 after being found guilty of breaching the constitution and was replaced by Somchai Wongsawat. There are outstanding court proceedings against the PPP.
The Thai economy is South-East Asia’s second largest, but growth is slowing. Thailand's GDP growth last year was just over 4.0%, and the World Bank has forecast 4.5% growth for the coming year. Positively, the National Economic and Social Development Board recently announced that economic growth picked up to 5.7% year-on-year for the fourth quarter of 2007.
Thailand has a diversified economy with a significant volume of international trade. This trade is heavily dependent on the United States and Japanese markets with these accounting for 35% of total exports. Strong sectors in the economy are motor vehicles, electronic goods, computer and electronic parts, textiles, fisheries, agriculture and food processing. The export sector has proved remarkably resilient in the face of a persistently high baht. Thailand continues to maintain restrictions on foreign entry in key service areas including air transport services, ports and telecommunications. Relaxing these would enhance competition and investment, reduce costs and raise incomes in the services sector. The government recently announced a fiscal stimulus package of $1.4billion which included subsidies to deal with rising fuel costs.
The Thai economy will continue to face challenges with consumer confidence remaining fragile and the economy under pressure from rising oil prices; an over-valued baht; a slow-down in demand from key markets; a rising inflation rate, and declining work place competitiveness. The current account is at the moment enjoying a surplus, but there is the prospect of a deficit in the year ahead if export growth falls.
The major challenges to Thailand’s immediate economic outlook are now external, with uncertainty in global markets and economies raising fears of a softening in export performance.
Latest economic information may be obtained from www.bot.or.th [external link]
Thailand seeks to position itself as the gateway to mainland Southeast Asia and as such its foreign policy is focused on the immediate region. Beyond this, Thailand accords importance to its relations with China and other major powers, including the USA, and Japan, as well as the Republic of Korea, India and the EU. Thailand has placed increasing emphasis on its regional dialogue with Japan, China and the Republic of Korea. Thailand seeks to play a constructive role in the framework of the United Nations as well as in other multilateral frameworks.
Australia and Thailand signed a Free Trade Agreement (FTA) in 2004 and New Zealand and Thailand signed a Closer Economic Partnership in April 2005. In April 2007, Thailand signed an FTA with Japan and continues to pursue a number of other bilateral FTAs.
Thailand was part of the negotiations towards an ASEAN-Australia/New Zealand Free Trade Agreement (AANZFTA), which has now been substantively concluded and is scheduled to be signed in December 2008.
Thailand’s major security preoccupation has traditionally been with its borders and the internal situations in neighbouring countries, Cambodia, Myanmar, Laos and Malaysia. Contentious issues include the trafficking of narcotics and the presence in Thailand of an estimated one million Myanmar workers, many of them illegal, and over 100,000 displaced. Recently, there have been tensions on the Thai/Cambodia border over the Preah Vihear Temple dispute. Thailand has contributed to a number of international peace keeping and reconstruction efforts including in East Timor, Afghanistan and Iraq.
Thailand has supported an open international trading environment through membership of the WTO, and joined, as founding member, of both the Cairns Group and APEC.
Further detail on Thai foreign policy may be found on www.mfa.go.th [external link]
New Zealand has a close relationship with Thailand and is ambitious about advancing new areas of collaboration. Our relations with Thailand date from the 1950s. The relatively narrow security/alliance dealings of the Southeast Asian Treaty Organisation (SEATO) years have been replaced by a broad-based relationship.
Tourism and education links are particular areas of strength. There are currently more than 2600 Thai students studying in New Zealand. Around 20,000 Thai tourists visited New Zealand in the last 12 months and about 90,000 New Zealanders visit Thailand each year.New Zealand works closely with Thailand in regional processes including, APEC, the ASEAN Regional Forum (ARF) and East Asia Summit (EAS).
New Zealand's bilateral aid programme in Thailand ceased in July 2004, when the then Prime Ministers of both countries announced that a new relationship based on regional partnership would be developed. There is growing informal interaction between New Zealand’s international aid programme and the Thailand International Cooperation Agency (TICA) as areas of mutual interest and cooperation are explored.
New Zealand supports the Mekong Institute at Khon Kaen University in north-east Thailand. The Mekong Institute works with other regional training institutions and mechanisms to provide human resource development to the Greater Mekong Sub-region (GMS) – Cambodia, Laos, Myanmar, Thailand, Viet Nam, and the Yunnan province of China.
top of pageThailand continues to have a strong economic base, and our bilateral trade is underpinned by the Closer Economic Partnership (CEP) agreement. Thailand is New Zealand’s 12th largest trading partner worldwide.
The implementation in January 2010 of the ASEAN-Australia New Zealand Free Trade Area has the potential to expand these economic links.
Numerous New Zealand companies have offices and substantial business in Thailand.
Thailand’s role as a low cost regional hub has led to investment by New Zealand companies and there are a number of joint ventures or representative offices in Thailand. These include Air New Zealand (TT Aviation Co Ltd); Australia and New Zealand Banking Group Ltd (ANZ); Fisher and Paykel; Baldwin Boyle Group; CR Asia; Connell Wagner; Fonterra; Hedley Jonh Exporters Ltd (NZ); Joy Sports Co Ltd; Lees Technology Ltd; Massive Software; Mastip Thailand Co Ltd; Nekta (Thailand) Ltd; NCC (New Zealand) Ltd; New Zealand Tourism Board; Pacific Aerospace Corporation Limited; TENCO – NZ Co Ltd; Tait Mobile Ratio Ltd; Thai Universal Office Products Co Ltd; Siam Dyemaster Co Ltd; Sealed Air (Thailand) Ltd; Volastic Co Ltd; Wai Ora Spa; Aviation Services; Patton Aero; Tatou Spa; and Gardyne Holt Thailand
The New Zealand Thai Chamber of Commerce, inaugurated in 1996 in Bangkok, is willing to assist New Zealand commercial interests.
top of pageThai International Airways (TG) has recently reduced the frequency of its direct flights between Bangkok and Auckland from seven to four times per week. Air New Zealand and Thai Airways are members of the Star Alliance.
Education is an important and rapidly growing element in the relationship. Thailand is now New Zealand’s largest Southeast Asian and fourth most important overall source of fee-paying students. The numbers of Thai full time private students in New Zealand rose during the 1990s, and Thailand is now our largest source of students from Southeast Asia (and our fourth largest education market overall). A number of New Zealand universities have developed strong links with counterpart institutions in Thailand, including with Thailand’s most prestigious universities. Such links promote New Zealand education as a quality product and represent an opportunity for building research and constituent links with Thai counterparts. New Zealand has had a long association with Khon Kaen University in the north east of Thailand.
top of pageThailand is not a significant immigration source for New Zealand and numbers have been small (less than 1% of immigrants). A bilateral visa waiver agreement for tourist travel was concluded in 1987, but was suspended in December 2000. All Thai nationals travelling to New Zealand require visas; with the New Zealand Immigration Service maintaining an office in Bangkok to process visitor, student, work and residence visa applications. New Zealand visitors to Thailand are granted a 30-day permit on arrival.
Bilateral defence engagement between New Zealand and Thailand was suspended following the 2006 Thai coup. Re-engagement has proceeded slowly and has focused mainly on reciprocal high-level visits and the reinstatement of Thailand to the Defence Mutual Assistance Programme. Annual bilateral defence talks were put in place in 2009.
The New Zealand Police and the Royal Thai Police have worked together closely in law enforcement for more than 30 years.
New Zealand and Thailand are closely engaged in an environment cooperation programme. The programme operates under the Arrangement on Environment that was concluded in 2005 in the context of the New Zealand-Thailand Closer Economic Partnership Agreement. The Ministry for the Environment in New Zealand (MfE) leads the programme in collaboration with the Ministry of Natural Resources and Environment in Thailand (MONRE).
The cooperation programme is based on the principle of mutual benefit and seeks to achieve objectives in relation to building capacity for improved environmental management and policy, promoting trade in environmental goods and services, and enhancing the bilateral relationship between New Zealand and Thailand.
Thailand is a significant source of tourists to New Zealand. New Zealand is seen as a clean, green, friendly and safe place in which independent travelling is easy. There were 20,349 visitors from Thailand in the year to December 2007. The number of Thai tourists to New Zealand has remained relatively steady over the last few years with a shift towards higher value independent tourists.
Around 90,000 New Zealanders (which includes New Zealand citizens arriving from all destinations) visit Thailand every year. Staying an average of about 10 days, these tourists are valuable contributors to the Thai tourism trade. There are 561 New Zealanders currently registered as being in Thailand, but we estimate the total number of New Zealanders living in the country to be in the order of 1200 and the total number of New Zealand tourists on any given day could be in excess of 2000.
Strong people-to-people links between New Zealand and Thailand had their foundation in Thai students coming to New Zealand under the Colombo Plan. An active Alumni Association based in Bangkok refreshes these bonds.
top of pageThe New Zealand Minister of Foreign Affairs and Trade and the Minister for Trade Negotiations have made regular visits to Thailand. The Prime Minister visited in 2005 for the signing of the CEP. The New Zealand Attorney General visited Thailand in August 2001; the Minister of Defence and Tourism made a bilateral visit in June 2003; and the Minister of Education visited in May 2004. The Governor-General, Dame Silvia Cartwright visited Thailand in April 2002. The Minister of Police visited Thailand in May 2006. Most recently, the Minister of Education/Ethic Affairs, Hon Chris Carter, visited Bangkok in March 2008.
The Thai Foreign Minister, Dr Surakiart Sathirathai, visited New Zealand for official talks in late October 2003. The Thai Prime Minister, Thaksin Shinawatra, visited New Zealand in July 2004 along with nine ministers. Foreign Minister, Kantathi Suphamongkhon, visited New Zealand in July 2006. Several Thai Parliamentary delegations have visited New Zealand in recent years. These have included the Senate Tourism and Privatisation Committees.
The Safe Travel website provides a travel advisory for travellers to Thailand [external link].
Enquiries may be directed to Consular Division at the following numbers: Ph: +64 4 439 8000; Fax: +64 4 439 8532.
New Zealand is represented in Thailand by:
Thailand is represented in New Zealand by:
