Srettha makes appeal to Australian PM on behalf of Thai auto industry

TUESDAY, MARCH 05, 2024

Thai Prime Minister Srettha Thavisin has asked Australia to provide a grace period before enforcing a new vehicle efficiency standard.

Srettha and his Australian counterpart, Anthony Albanese, on Tuesday pledged tighter bilateral cooperation on trade, tourism and several other issues, and requested a delay in the enforcement of Australia’s new vehicle efficiency standard.

During the bilateral talk on the sideline of the ASEAN-Australia special summit in Melbourne, Srettha asked Albanese to consider a partial implementation or the provision of a grace period before enforcing Australia’s New Vehicle Efficiency Standard (NVES).

Srettha noted that Thailand is exporting over 200,000 vehicles to Australia per year. The NVES enforcement could affect Thai manufacturers and exporters and so he would like to propose gradual enforcement of the NVES, he told the prime minister.

Srettha said vehicle manufacturers in Thailand needed time for the transition from vehicles using internal combustion engines to electric vehicles in line with Australia’s green energy goal.

Australia’s NVES is expected to come into effect from January 1, 2025 with the goal of encouraging car manufacturers to sell cleaner and more fuel-efficient vehicles in Australia. That would reduce emissions and consumers could save money on fuel.

Srettha met Albanese at the Melbourne Convention and Exhibition Centre at 11.50am local time. According to government spokesperson Chai Wacharonke, the prime ministers discussed several topics ranging from trade cooperation to tourism, labour and security at both bilateral and multilateral levels.

Srettha makes appeal to Australian PM on behalf of Thai auto industry

Chai quoted Srettha as saying he was happy to again meet his Australian counterpart following their first discussions during the Asia-Pacific Economic Cooperation summit last year.

Srettha noted that the bilateral talk was also a follow-up from the visit to Thailand last month by David Hurley, the governor-general of the Commonwealth of Australia.

Srettha assured Albanese that as a strategic partner of Australia, the Thai government would be ready to tighten ties and cooperation on trade, investment, and tourism, as well as technology and innovation.

Albanese replied that Thailand and Australia have had friendly ties for many years and the southern continent regards Thailand as its key strategic partner.

During the talk, the two prime ministers pledged to improve the Thailand-Australia Free Trade Agreement (TAFTA), with trade under the agreement having so far grown by over 186%.

Srettha proposed that Australian investors use Thailand as a hub for foods and medical product manufacturing as well as a medical and wellness centre.

He said TAFTA could also benefit from Thailand’s mega project to build a southern land bridge linking the Indian and Pacific oceans.

Srettha makes appeal to Australian PM on behalf of Thai auto industry

Srettha told his Australian counterpart that Thailand is interested in supporting investments in Thailand by Australian businesses in agricultural industries, green energy, EVs, and smart industries so that Thailand could learn from those businesses.

On tourism, Srettha said his government was willing to sign a memorandum of understanding with Australia to promote increased mutual travels.

Srettha proposed that the two countries increase the number of flights in each direction, as well as increase work and holiday visa quotas.

Regarding education cooperation, Srettha said his government was willing to support Australia’s educational institutes opening branches in Thailand, especially to provide vocational education to Thai workforces.

On security and labour cooperation, both prime ministers expressed a willingness to exchange military technologies and to mutually train their military personnel.

Srettha assured Albanese that the Thai government would make it convenient for Thai workers to labour in Australian industries facing worker shortages, and would support Australian digital nomads who wish to work from Thailand.

Srettha also proposed that Australia consider hiring Thai farmers to help in the harvest season.

On multilateral cooperation, Srettha expressed appreciation that Australia had became a partner of the Mekong Basin nations.

Finally, they offered mutual congratulations for joining the ASEAN-Australia Counter Trafficking programme.