Business ties between Thailand and Australia are advancing because of the bilateral free trade pact and growing confidence, according to Gary Woollacott, president of Australia-Thailand Chamber of Commerce (AustCham).

Trade between both countries has doubled since the Thailand-Australia Free Trade Agreement (Tafta) took effect at the beginning of 2005. Additionally, direct investment from Australia remains strong despite heightening political uncertainties over the past few years, Mr Woollacott said.

''Investors' sentiment in Thailand suffered during the past few years, but Australian investment held up,'' he said.

''Australian investors are still optimistic and see Thailand as an attractive place to attract investment. Tafta has been a factor for that.''

Australia's foreign direct investment to the country totalled $1 billion between January and June 2007, compared with $3.2 billion in 2006 and $900 million in 2005.

Thai exports to Australia totalled $5.2 billion during the first 11 months of last year. Of the total, $3.9 billion worth of products benefited from Tafta tariff privileges. The country recorded a trade surplus of $1.8 billion with Australia during the period.

Tafta outlines tariff reductions to zero for Australian goods by 2015 and Thai goods by 2025, with milk the most sensitive product under the pact.

''There are not only large Australian companies, but small- and medium-sized enterprises that are interested in Thailand. They will help train people and add more value to the economy,'' Mr Woollacott said.

He said that automobiles, especially pickup trucks, canned seafood and fresh fruit were among the goods that benefited from Tafta and their shipments had risen steadily over the years.

Australia is also seeking through Tafta greater liberalisation of the Thai services sector such as insurance, banking and retail trade.

''There are no major Australian banks in Thailand. The fact that it takes days for a provincial cheque to clear should not have happened. The banking system should be more competitive,'' he said.

''There are 64 million consumers in the country who may want to buy products from air-conditioned outlets. We should let them decide where they want to shop.''

Mr Woollacott said AustCham had taken a common position with the Joint Foreign Chambers of Thailand in disagreeing with the government's proposed tightening of the Foreign Business Act.

Thailand's economic growth has lagged behind their regional peers for the past few years because of policy uncertainties caused by the ''nationalistic approach'', he said.

''I want to see increasing liberalisation of Thai businesses. Some sectors have been prohibited in the Thai economy for 30 years. If an Australian company does not do well, it will go out of business and a new foreign company will do it. That has made Australia's banking system, insurance and logistics businesses efficient,'' Mr Woollacott said.

AustCham celebrated its 30th anniversary in Thailand last year, with membership increasing to 400 from 250 in 2005.

''The increase by 150 during the past few years is astonishing,'' Mr Woollacott said. ''There is an improving business link between the two countries. We've become the most dynamic foreign chamber of commerce in Thailand.''