1 week Ago
Thailand will continue to pursue free trade agreements (FTAs) this year as part of its strategy to accelerate economic recovery. The scheduled signing of the Thailand-Efta FTA this month represents Thailand's first pact with European nations. The government is also working to finish negotiations with key partners such as the EU, South Korea, Asean-Canada and Bhutan, aiming to conclude deals this year.
Commerce Minister Pichai Naripthaphan said Thailand has 15 FTAs with 18 countries. He said concluding negotiations with the European Free Trade Association (Efta), which comprises Switzerland, Norway, Iceland and Liechtenstein, is a notable achievement because the high-potential market has strong purchasing power and is well-known for technology and innovation. The FTA should enhance opportunities for trade and investment, elevate standards, and strengthen Thailand's competitive edge, said Mr Pichai.
The signing ceremony for the Thailand-Efta pact is set to coincide with the World Economic Forum on Jan 20-24 in Davos, Switzerland, with the Thai premier participating as a witness. Thailand wants to accelerate discussions on completing FTAs, particularly with the EU, according to the ministry. The Thailand-Efta FTA encouraged the EU and United Arab Emirates to pursue accelerated negotiations with Thailand, said Mr Pichai.
These agreements are critical for attracting foreign investment, as Thailand's geographical location can enable it to become a key trade and investment hub in Southeast Asia, he said. The Thailand-Sri Lanka FTA is expected to come into effect in the first quarter of 2025. Meanwhile, Thailand is advancing its negotiations with South Korea under the Economic Partnership Agreement (EPA) framework, which seeks to broaden market access beyond the existing Asean-Korea FTA and the Regional Comprehensive Economic Partnership.
The EPA intends to explore new dimensions, including digital trade and supply chain collaboration, said Mr Pichai. The government urged South Korea to open its market to a range of high-quality agricultural exports from Thailand, such as tropical fruit (mangoes, mangosteens and pineapples), as well as fresh and processed shrimp and chicken. To bolster bilateral relations, Thailand and South Korea plan to reactivate the Joint Trade Committee (JTC), which has been inactive for more than 20 years.
The committee aims to address trade and investment hurdles, easing bilateral trade. Thailand is set to host a JTC meeting early this year. Negotiations with Bhutan are also on track, focusing on trade liberalisation, with two rounds already completed and a target for the pact to be finalised in 2025.
Meanwhile, discussions concerning an Asean-Canada FTA have progressed through nine rounds, reaching agreements on trade services and customs facilitation. The goal is to conclude these negotiations this year. Thailand also wants to enhance existing FTAs, including the Asean Trade in Goods Agreement and its trade deals with India and Peru.
The country is eager to forge new economic partnerships that may pave the way for future FTAs, particularly with the UK, following the signing of a memorandum of understanding in September 2024 intended to enhance trade and investment relations..
