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ResourcesCorporate and Tax AdvisoryUS Corporate LawThe US-Thai Treaty of Amity: A Refuge from the Trade War?

The US-Thai Treaty of Amity: A Refuge from the Trade War?

Transcript of the above video: 

As the title of this video suggests, we are discussing the US-Thai Treaty of Amity and in the specific context of this unfolding "trade war" that we have seen between the United States and China. 

I don't wish to get into the specifics of the back and forth or tête-à-tête if you will, between China and Thailand [correction: speaker meant to say USA] but I wanted to make this video for those who are unaware of the US - Thai Treaty of Amity and the benefits that it does prescribe for Americans looking to do business here in the Kingdom. For those who are unaware, there is a law in Thailand called the Foreign Business Act which precludes many nationalities from owning their companies outright in Thailand so under the Foreign Business Act, many types of Enterprises here in the Kingdom must be 51% Thai and 49% foreign owned as a rule and as a minimum. The provisions of the US -Thai Treaty of Amity and specifically they are provisions pertaining to National treatment of Americans in the Kingdom allow Americans and American Companies to own Thai subsidiaries or maintain Thai subsidiaries with 100% American control and ownership. So an American could in theory come to Thailand and set up a Thai Limited Company and basically own the majority shares of that company notwithstanding the provisions of the Foreign Businesses Act

For many who are may be doing business internationally, especially those who may have done business up in China, and have found that dealing with things especially bilaterally between China and the United States, Thailand could be something of a refuge and the US-Thai Treaty of Amity and the provisions associated therewith, could provide individuals, especially Americans, who are looking to continue doing business in Asia and the overall East Asia region to go ahead and hub their business here in Bangkok and maintain a regional presence through a totally wholly-owned American Enterprise here in the Kingdom. Again, that is a major benefit compared to other nationalities here in the Kingdom and frankly it is also my understanding that it is a major benefit for Americans when you compare other jurisdictions in Southeast Asia as many of the other jurisdictions within ASEAN as well as other jurisdictions more north in Asia don't necessarily allow 100% foreign ownership of businesses that are operating in those jurisdiction. 

So those that are looking to do business in Southeast Asia it is really probably pretty good idea to take a look at the provisions of the US - Thai Treaty of Amity as they can provide substantial benefits for Americans trying to do business in the ASEAN region and greater Asia as a whole.