What's Happening?
Siam Legal International has reported on the status of the US Treaty of Amity with Thailand in 2025, emphasizing its continued effectiveness and the introduction of a new bilateral trade framework. The 1966 Treaty of Amity allows American investors to own
majority shares in eligible Thai companies. The new trade framework, announced in October 2025, aims to lower trade barriers and expand market access, with Thailand eliminating tariffs on 99% of US-origin products. The framework builds on previous agreements, enhancing trade relations between the two countries.
Why It's Important?
The continuation of the Treaty of Amity and the new trade framework present significant opportunities for US businesses in Thailand. By reducing tariffs and aligning regulations, the framework facilitates easier market entry and expansion for American companies, particularly in sectors like technology, food production, and medical devices. This could lead to increased US exports to Thailand, benefiting American industries and strengthening economic ties between the two nations.
What's Next?
As the new trade framework is implemented, US companies may explore expanding their operations in Thailand, leveraging the favorable conditions created by the treaty and framework. Businesses will need to assess compliance requirements and potential restructuring to maximize benefits. Future updates to the Foreign Business Act could further open sectors to US investment, enhancing bilateral trade and economic collaboration.
