Trade Disputes in Thailand can arise from many causes, including differences in international and domestic trade agreements. Fortunately, there are a number of ways to resolve such disputes outside of the court system.
Depending on the type of case, courts may require mediation before witness hearings. This is the case for labor cases and some general civil cases.
Intellectual property laws
Businesses operating in Thailand face a variety of legal disputes, from contractual disagreements to intellectual property violations. Developing strategies for anticipating and addressing these disputes can help businesses avoid costly repercussions. Engaging experienced legal counsel familiar with Thai trade laws and international regulations is crucial. Including clear dispute resolution clauses in contracts is also advisable, and maintaining thorough documentation of commercial transactions, correspondence, and compliance can support claims or defenses if required.
Intellectual property (IP) disputes often involve allegations of infringement, such as trademarks, copyrights, and patents. IP protection can be enforced through civil and criminal proceedings.
The establishment of the Intellectual Property and International Trade Court demonstrates Thailand’s commitment to safeguarding intellectual property rights and promoting fair international trade practices. The specialized court has the authority to investigate and resolve disputes related to international trade. In addition, the court can impose fines and/or imprisonment.
Customs Act
The Customs Act governs all imports and exports in Thailand. It includes provisions for audits, investigations and the imposition of fines for offences such as non-compliance with customs procedures and false declarations. However, an offender can avoid a fine by demonstrating that the offence was not wilful or reckless.
The primary basis for calculating the value of imported goods in Thailand is their transaction value declared by the importer. This value may be adjusted by removing or adding certain elements, such as royalties and license fees. It is also possible to add design or development fees that are related to the goods.
In this dispute, the Philippines claimed that Thai Customs had violated their substantive and procedural obligations under Article X:3(a). They claimed that the practice of having government officials simultaneously serve on the board of TTM was inconsistent with their obligation to administer their customs laws in a reasonable and impartial manner.
Negotiation
Trade disputes are an inevitable part of global business, but they can be resolved with a structured legal framework. Negotiation, mediation, arbitration, and litigation are available methods of dispute resolution in Thailand. By prioritizing open communication and compliance with trade rules, businesses can prevent disputes from arising and maintain smooth trading relationships.
Disputes can arise from a variety of causes, including disagreements over contract terms, intellectual property rights, and tariffs. These conflicts are regulated by Thai laws and international trade agreements. Understanding the causes of trade disputes and their resolution mechanisms can help businesses avoid conflict and maintain a competitive edge in Thailand’s marketplace.
To resolve a dispute, parties must first negotiate. Generally, this process is conducted in the presence of a third party to ensure fair and impartial proceedings. In addition, both parties must understand the legal and cultural context of their dispute to achieve a satisfactory resolution. The services of a legal advisor can be invaluable in this regard.
Mediation
While disputes are an inevitable part of the business world, they can jeopardize your business and hinder progress toward success. However, you can avoid these disputes by negotiating a settlement through mediation. This process is a highly effective method of Thailand dispute resolution, as it allows the parties to discuss their issues and find solutions that are mutually acceptable. It also reduces costs and provides flexibility for both parties.
A professional mediator is impartial and promotes productive conversation between the parties. They are also trained to help the parties identify their cases’ strengths and weaknesses. They can even help the parties resolve their disputes outside of court.
Mediation can be initiated before filing a case or at any stage of litigation. It is available in most civil and commercial disputes and some criminal disputes involving compoundable offences. It also helps preserve relationships between the disputing parties.
Arbitration
Arbitration is a form of dispute resolution that takes place outside of the court system. The parties select an arbitrator or panel of arbitrators to review evidence and listen to arguments before making a binding decision called an “arbitral award.” Arbitration can be less expensive and quicker than litigation. It also offers more privacy than a court trial and can avoid public disclosure of sensitive information. It is a good idea to discuss and stipulate arbitration clauses during the drafting of contracts.
Common commercial disputes in Thailand include debt collection, intellectual property, shareholder disputes and consumer disputes. Having a basic understanding of the different types of commercial disputes and their resolution mechanisms will help businesses navigate the country’s unique legal framework. Additionally, it is helpful to have a lawyer experienced in Thai commercial law to protect the business’ interests and ensure compliance with local laws.
Litigation
The court system in Thailand is adversarial and based on the submission of evidence. Judges play a critical role in case management, and often question witnesses directly during trial hearings. In addition, the winning party is usually able to recover a significant portion of its legal fees. However, the amount recovered varies from case to case, and is based on the complexity or simplicity of the case and lawyer remuneration guidelines set out in the judicial system.
Businesses may be involved in disputes with trading partners due to a variety of factors. For example, disagreements over pricing or quality can result in trade disputes. Intellectual property infringement, such as piracy and counterfeiting, can also lead to a dispute. Other common disputes include shareholder conflicts and consumer complaints. Resolving trade disputes promptly helps maintain positive trading relationships and economic stability, and ensures fair competition and market access.
