Thailand has a reasonably sized marine industry. The industry is capable of building a range of vessels from small fibreglass vessels to commercial ships. High percentages of marine products are imported to Thailand. Demand for marine products continues to increase as a result of the government's policy on zero boat tax on leisure vessels, which started in February 2004.
Marine products and services from Australia are particularly competitive compared to the USA and Europe. This is due to the depreciation of Thai and Australian currencies against the US dollar, proximity to the market and the Thailand-Australia Free Trade Agreement (TAFTA) that benefits in tariff reduction of most marine products. Australian marine design features are considered equal or superior to other imported products in Thailand.
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