U.S.-Thai Treaty of Amity
Encyclopedia
The Treaty of Amity and Economic Relations Between the Kingdom of Thailand and the United States of America was a treaty
signed at Bangkok
on May 29, 1966. The treaty
allows for American citizens
and businesses incorporated
in the U.S, or in Thailand
to maintain a majority shareholding or to wholly own its company in Thailand
, and thereby engage in business on the same basis as would a Thai national. These companies are also exempt from most of the restrictions on foreign investment imposed by the Foreign Business Act of 1999
. The treaty in effect allows for an equality of benefits between the countries. American companies who wish to be covered by the Treaty of Amity should have a minimum of 50% American directors and a minimum of 51% of shares must be held by American citizens.
Under the Treaty, Thailand restricts American investment only in the following fields of business:
The treaty also allows for preferential treatment for Thai businessmen applying for visa
s to conduct business in the United States. The formalities for their applications are kept to a minimum. Under the treaty the U.S. Congress may not enact discriminating laws against Thai firms. Their profits may be freely remitted to Thailand
and their assets may not be expropriated.
Treaty
A treaty is an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations. A treaty may also be known as an agreement, protocol, covenant, convention or exchange of letters, among other terms...
signed at Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...
on May 29, 1966. The treaty
Treaty
A treaty is an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations. A treaty may also be known as an agreement, protocol, covenant, convention or exchange of letters, among other terms...
allows for American citizens
Citizenship in the United States
Citizenship in the United States is a status given to individuals that entails specific rights, duties, privileges, and benefits between the United States and the individual...
and businesses incorporated
Incorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
in the U.S, or in Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
to maintain a majority shareholding or to wholly own its company in Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
, and thereby engage in business on the same basis as would a Thai national. These companies are also exempt from most of the restrictions on foreign investment imposed by the Foreign Business Act of 1999
Foreign Business Act of 1999 (Thailand)
The Foreign Business Act was a law enacted by the Chuan Leekpai-controlled National Legislative Assembly of Thailand in 1999 that limited foreign ownership of certain Thai industries. Its predecessor was the Alien Business Act of 1972, enacted by a military junta...
. The treaty in effect allows for an equality of benefits between the countries. American companies who wish to be covered by the Treaty of Amity should have a minimum of 50% American directors and a minimum of 51% of shares must be held by American citizens.
Under the Treaty, Thailand restricts American investment only in the following fields of business:
- Communications
- Transportation
- Fiduciary functions
- Banking involving depository functions
- Exploitation of land and natural resources
- Owning landReal propertyIn English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
; and - Domestic tradeTradeTrade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
in agriculturalAgricultureAgriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
products.
The treaty also allows for preferential treatment for Thai businessmen applying for visa
Visa (document)
A visa is a document showing that a person is authorized to enter the territory for which it was issued, subject to permission of an immigration official at the time of actual entry. The authorization may be a document, but more commonly it is a stamp endorsed in the applicant's passport...
s to conduct business in the United States. The formalities for their applications are kept to a minimum. Under the treaty the U.S. Congress may not enact discriminating laws against Thai firms. Their profits may be freely remitted to Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
and their assets may not be expropriated.