THE EFFECTS OF THAILAND-AUSTRALIA FREE TRADE AGREEMENT: THE CASE STUDY OF BEEF AND DAIRY PRODUCTS by

Australia is considered as one of the Thailand's important trading partners. The total trade between Thailand and Australia has significantly and continuously increased from last decade. Both countries already approved Thailand-Australia Free Trade Agreement and already effective since last year. Under the implementation of TAFTA, beef and dairy products are expected to be affected from the TAFTA. This study aims to estimate the effects of a reduction in the tariff rate on import demand of beef and dairy products. This study estimate the effects of TAFTA on beef and dairy products import quantity by using the elasticity of import price which can be obtained from import demand estimation. The Seemingly Unrelated Regression (SUR) is utilized to estimate the import demand function for selected beef and dairy products