Siam Legal International today reported on the continued effectiveness of the US Treaty of Amity Thailand in 2025, alongside newly announced bilateral trade developments that expand opportunities for American businesses operating in Thailand.

The 1966 Treaty of Amity remains fully active and unchanged in 2025, continuing to allow majority or complete American ownership in eligible Thai companies. This longstanding agreement provides American investors with national treatment in non-restricted sectors and permits 100 percent ownership of Thai companies when US citizens hold the majority of shares and directorships.

In October 2025, Thailand and the United States announced a Framework for a Reciprocal Trade Agreement designed to lower trade barriers and expand market access between the two nations. Under this framework, Thailand has committed to eliminating tariffs on approximately 99 percent of industrial, agricultural, and food products originating from the United States. The United States will maintain a 19 percent tariff on most Thai-origin products while allowing zero-tariff access for selected partner-aligned Thai goods.

Both countries have agreed to reduce non-tariff barriers through regulatory alignment in sectors including vehicles, pharmaceuticals, medical devices, and customs modernization. The new framework builds upon the 1966 Treaty of Amity and the 2002 Trade and Investment Framework Agreement, creating a comprehensive structure for bilateral trade relations.

"The combined effect of the Treaty of Amity and the 2025 trade framework creates highly favorable conditions for US trade and investment in Thailand," said Rex Baay, a spokesperson from Siam Legal International. "We expect more US companies to pursue Amity structures due to these expanded trade openings, particularly in technology, food production, professional services, logistics, and medical devices sectors."

Annual bilateral trade between the United States and Thailand exceeds 50 billion USD, with the United States serving as a top export market for Thailand. Thousands of Amity-certified companies currently operate across IT, consulting, logistics, and manufacturing sectors in Thailand.

The 2025 framework is expected to increase US export volume to Thailand while reducing compliance costs for American companies through customs modernization and regulatory transparency. Companies will benefit from lower import costs, faster customs processes, and stronger competitiveness for Amity-certified firms.

Restricted sectors remain unchanged under the Treaty of Amity, including land ownership, communications, transport, banking, natural resource extraction, and domestic trade in agricultural products. The framework does not override the Foreign Business Act, and majority US ownership must be maintained at all times. Nominee structures remain prohibited under Thai law.

Companies seeking to leverage these opportunities should evaluate shareholding composition, restructuring needs, and compliance requirements to take advantage of the 2025 changes. Potential updates to the Foreign Business Act may open certain sectors but do not alter Amity eligibility rules.

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Siam Legal International is a Bangkok-based law firm specializing in foreign business establishment, Treaty of Amity certification, and comprehensive legal services for international companies operating in Thailand. The firm provides expertise in business registration, immigration services, property transactions, and litigation support across multiple practice areas.

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For more information about Siam Legal International, contact the company here:

Siam Legal International
Rex Baay
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info@siam-legal.com
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Bangkok 10110, Thailand