The Impact of Thailand-Australia Free Trade Agreement (TAFTA): Akara Mining Dispute between the Thai Government and Kingsgate Consolidated Limited

Abstract

This study aims to explore how Free Trade Agreements (FTAs) bring multiple benefits but also generate negative impacts on people and the environment. The mining dispute between an Australia-based mining company, Kingsgate Consolidated Limited, and the Thai government well encapsulates various dimensions of free trade agreements, particularly the imbalanced power dynamic between the foreign companies protected by FTAs and the local communities and the environment.

Through Thailand-Australia Free Trade Agreement (TAFTA), Kingsgate received a concession from the Thai government to mine gold in three provinces: Phichit, Phitsanulok, and Phetchabun. Although various stakeholders welcomed the economic boost and job creation, adverse effects on the local communities, ranging from relocations, job losses in agricultural sectors, and violations of the locals’ human rights to the contamination of the environment with poisonous substances, were inevitable. The government then suspended the mining operation, which later faced a lawsuit filed by Kingsgate through Investor-State Dispute Settlement (ISDS), a privilege from TAFTA granting private parties the right to sue a nation. Although the legal proceedings with Kingsgate for the resumption of mining operations in 2023 are progressing, Thailand continues grappling with the persistent challenges of mitigating the negative externalities caused by TAFTA.