Japan-Thailand Economics Partnership Agreement or JTEPA is a free trade agreement contract that Thailand and Japan have made together which offer the mutual convenience in trading and service, and also other benefits concerning of two countries. In recognizing of the need to develop and enhance cooperation between people and business communities of the parties for mutual benefits, also knowing that the economic partnerships of the party would create larger and new markets, and would increase economic efficiency and consumer welfare, enhancing the attractiveness and vibrancy of their markets, and expanding trade and investment not only between them but also in the region, Thailand and Japan are agree in signing of JTEPA. In addition, it is convinced that the making of this agreement will stronger economic linkages between the partied which would provide greater opportunities, larger economies of scale and a more predictable environment for economic activities not only for Japanese and Thai business but also for other businesses in Asia.
The agreement has been negotiating since February 2004; however its principles were first announced later on 1st September 2005 at Tokyo, Japan. Yet, the real signing of the agreement between Thailand and Japan was actually on 3rd April 2007, signed between the Prime Minister of Japan, Shinzo Abe, and the Prime Minister of Thailand, Surayud Chulanont, which was enacted last year from 1st November 2007.
From signing JTEPA, Thailand has built a stronger belief which then ensures more safety and beneficial investment to Japanese investors to increase their investment degree in Thai market. As a chain result, other foreign investors also enlarge their investment in Thailand in order to gain more Japanese market sections. After doing JTEPA, Japan immediately eradicated tax for some of Thai agricultural products, for example, shrimp, topical fruit, canned fruit, etc. Then, it will cancel tax within five to ten years for products like Squid and pet food, reduced half or more than half of the tax for instant seafood and boiled chicken. Moreover, Japan gave quota to banana, cassava flour, molasses and pineapple without paying any tax. For industrial products, Japan canceled tax for jewelry, textile and the clothing and chemicals immediately, and will cancel the tax with in seven to ten years for shoe and leather. In Trade in Service section, Thailand has opened free trade to Japan more than WTO 14 lines; however Japan has opened 135 lines more. Considering of the movement of natural person problem, Japan, now, accepts that a bachelor's degree from Thailand is as the same level as Japanese one. Consequently, more of Thai people are able to start vary of business in Japan easier, for instance, advertising, tourism and hospitality, restaurant, security service, interpreter, language institute and so on. Especially for the Thai chefs that normally do not require any degree, Japan has reduced experienced time from ten to five years to meet the condition to enter the country. For other cooperation – agricultural parts, SMEs business, tourism, etc – will also gain the benefit; however, depend on both government and public sectors to be able to maximize their own profits.