The Cabinet has approved a draft host country agreement with the Permanent Court of Arbitration (PCA), part of a plan to establish Thailand as a regional centre for settling international disputes.
Deputy government spokesperson Lalida Persvivatana said today, August 18, that the Cabinet also approved in principle a draft royal decree granting privileges and immunities to the PCA and people connected to its work.
The move is intended to let the organisation hold meetings, hearings and dispute resolution proceedings in Thailand effectively.
The PCA is an international organisation that provides arbitration services and helps settle disputes between states peacefully. Thailand is one of its founding members and a party to the 1907 Convention for the Pacific Settlement of International Disputes.
The court first proposed a host country agreement with the Thai government in 2019 to support activities held in Thailand such as hearings, meetings and seminars.
Under the draft agreement, Thailand will provide support for the PCA’s dispute resolution work, including office space, meeting venues, utilities and other necessary services. It also sets out the privileges and immunities the PCA, its officials, adjudicators and participants need to carry out their duties independently.
These cover immunity for the PCA’s property and documents, exemption from certain taxes and duties, and immigration support for officials and adjudicators, along with immunity relating to their official functions. The rights are granted only as far as the work requires, and remain within Thai law.
The Cabinet assigned the Ministry of Justice as the government’s main coordinating point, while the Ministry of Interior will handle the waiver of visa fees. Tax agencies will act under the law to support the tax and duty privileges set out in the agreement.
For premises and services, the Thai Arbitration Institute will provide offices, meeting rooms, hearing rooms and utilities free of charge, for a combined total of no more than 30 days per financial year, at an estimated cost of about US$45,000 (1.5 million baht).
Additional services, such as translation or audio recording, will be the responsibility of the disputing parties or the PCA.
Lalida said the agreement would strengthen Thailand’s role in resolving disputes and open opportunities for its legal sector.
Thairath reported that the government also expects the move to give Thailand a closer role in shaping international law and global dispute settlement mechanisms.
The Ministry of Foreign Affairs regards the draft as a treaty under international law and under Section 178 of the Constitution, meaning it needs Cabinet approval before signing and taking effect. It does not, however, fall under treaties that require parliamentary approval.
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