Prime Minister of Thailand Thaksin Sinawatra will witness the signing of a bilateral free trade treaty today with Australia in Canberra.
Dr Thaksin will be welcomed to the forecourt of Federal Parliament with a 19 gun salute and a guard of honour by Prime Minister John Howard, and together they will oversee the signing.
The trade treaty between the two countries should come into force in January.
When the treaty takes effect, Australia will scrap 83 per cent of its tariffs while Thailand will do away with nearly half of its tariffs.
By 2010, 98 per cent of trade between the two countries will be tariff-free.
A Canberra official says it is an historic breakthrough for Australia because Thailand is the fastest growing economy in South East Asia and has the highest protection levels.
Thai opposition
The agreement has been criticised by farmers in Thailand.
Thailand's dairy farmers want their Dr Thaksin to cancel or renegotiate the terms of the free trade agreement that sets aside a special quota for Australian milk imports.
They argue the quota will lead to job losses in the Thai dairy industry.
Opponents say the deal was negotiated in secrecy, without parliamentary scrutiny and with Dr Thaksin ignoring wider public concern about making trade deals with larger, developed countries.
After the free trade signing ceremony, ministers from both countries are scheduled to discuss a number of additional proposals, including a Thai request to buy up to one million head of cattle and for Australia to supply koalas for a new safari park in northern Thailand.
Dr Thaksin will hold talks with Mr Howard and Opposition leader Mark Latham today.
He will then fly to Melbourne this afternoon for an official dinner with Victorian Premier Steve Bracks and open a trade fair tomorrow before flying on to New Zealand.
