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Thailand-US Treaty of Amity
Treaty of Amity and Economic Relations (1966)
The information is reviewed and updated monthly against official sources.
In short
The 1966 Thailand-US Treaty of Amity grants American nationals and companies broad national treatment to own and run businesses in Thailand on terms close to Thai firms, but it does not lift the ban on foreign land ownership and excludes several reserved sectors.
Art. I: Peace, friendship and entry of nationals
The treaty establishes lasting peace and friendship between the two states and lets nationals of each country enter, travel and reside in the other's territory to carry on trade and other lawful activities, subject to general rules on public order, health and security that apply to foreigners.
Art. II: Protection of persons and access to courts
Nationals of each party receive constant protection and security for their person and may freely access courts and administrative bodies to pursue and defend their rights. They are entitled to fair legal process, the chance to retain counsel, and treatment no less favorable than that given to local citizens in such matters.
Art. III: Freedom of conscience and personal liberties
Each party safeguards the personal freedoms of the other's nationals, including freedom of conscience and worship and the right to gather data, communicate and engage in cultural and scientific exchange. They may not be subjected to arbitrary interference and keep liberties on par with those enjoyed by the host country's own residents.
Art. IV: Property rights and protection against expropriation
Property belonging to nationals and companies of one party enjoys steady protection in the other's territory. It may be taken only for a public purpose, without discrimination, and against prompt payment of fair, effective and freely transferable compensation. Owners keep the right to challenge such taking and to be heard.
Art. IV (lease and use of property): Right to lease and occupy premises
Americans and US companies may lease, hold and use buildings and land for residence, offices, warehouses, factories and other lawful business needs. This covers occupancy under leases and similar arrangements, but it does not amount to a right of outright land ownership, which Thai law continues to reserve for Thai nationals.
Art. V: Right to conduct business and national treatment
Nationals and companies of each party may establish and operate commercial, industrial, financial and other enterprises in the other's territory and may organize, control and manage corporations there. As a rule they are treated no less favorably than local nationals and companies, allowing majority American ownership otherwise restricted to foreigners.
Art. V (reserved sectors): Reserved sectors excluded from national treatment
National treatment does not reach certain fields each state may keep for its own citizens. For Thailand these notably include communications, transport, fiduciary and certain banking functions (deposit-taking), ownership of land, exploitation of land and natural resources, and domestic trade in local farm products. American firms cannot use the treaty to enter these areas.
Art. V (land ownership bar): No relief from the land ownership ban
The treaty grants no exemption from Thailand's prohibition on foreign land ownership under the Land Code (notably Section 86). A majority American-owned Amity company is still treated as foreign for land purposes, so US investors needing real estate rely on leases, usufruct, superficies or condominium units within the foreign quota.
Art. VI: Taxation on a non-discriminatory basis
Each party agrees that nationals and companies of the other should not face heavier or more burdensome taxes, fees or related requirements than its own nationals and companies in like circumstances. Taxation must rest on the income or activity genuinely connected to that country and follow generally applicable, non-discriminatory rules.
Art. VII: Transfer of funds and exchange controls
Each party allows nationals and companies of the other to transfer funds, including profits, capital and proceeds of sale, into and out of the country. A state may keep exchange restrictions only as far as truly needed to protect its monetary reserves and economic stability, applied fairly and without unjust discrimination.
Art. VIII: Goods, commerce and most-favored-nation treatment
In trade and the movement of goods between the two countries, each party generally extends most-favored-nation treatment, meaning advantages granted to any third country are made available to the other party. This covers customs duties, charges and rules affecting import, export and internal handling of products.
Art. IX: Non-discrimination and reasonable regulation
Beyond specific guarantees, each party undertakes to treat the other's nationals, companies, goods and vessels reasonably and without arbitrary or unjustified discrimination. Permitted regulation of business and the reserved sectors must be applied in good faith and not used as a disguised way to defeat the treaty's protections.
Art. X (definitions): Definition of nationals and companies
The treaty explains who benefits: nationals are individuals holding the citizenship of either state, and companies are entities (corporations, partnerships and associations) duly formed under the laws of one party. Eligibility for Amity protection turns on genuine American ownership and control, which is why Thai authorities require certification of US-held shares.
Amity registration (practice): Certification and Foreign Business Certificate
To use treaty benefits in practice, a company incorporates in Thailand, obtains certification of its American ownership through the US commercial service, and then secures a Foreign Business Certificate from the Ministry of Commerce. This lets a majority US-owned firm operate outside many Foreign Business Act limits, but never in the reserved sectors.
Art. XII-XIV: Entry into force, duration and termination
The closing articles set how the treaty takes effect after exchange of ratifications, fix its initial term and provide for renewal, and allow either party to end it on written notice after a defined period. These clauses give the agreement long-term stability while leaving each state a lawful exit route.