Thailand is set to continue its pursuit of free trade agreements (FTAs) in 2025 as part of its strategy to boost economic recovery.
The upcoming signing of the Thailand-Efta FTA this month marks Thailand’s first agreement with European nations. The government is also aiming to conclude negotiations with key partners such as the EU, South Korea, ASEAN-Canada, and Bhutan this year.
Commerce Minister Pichai Naripthaphan noted that Thailand currently has 15 FTAs in place with 18 different countries. He emphasized the significance of reaching an agreement with the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland, and Liechtenstein, as it opens up access to a high-potential market known for strong purchasing power and advancements in technology and innovation.
This FTA is expected to enhance trade and investment opportunities, raise standards, and strengthen Thailand’s competitive position, according to Mr. Pichai.
The signing ceremony for the Thailand-EFTA pact is set to take place during the World Economic Forum from January 20-24 in Davos, Switzerland, with the Thai Prime Minister attending as a witness.
The Ministry has expressed that it wants to expedite negotiations, particularly with the EU. The Thailand-EFTA agreement has also encouraged the EU and the United Arab Emirates to accelerate their talks with Thailand, which are essential for attracting foreign investment. Mr. Pichai highlighted Thailand’s strategic geographical location, which positions it to become a key trade and investment hub in Southeast Asia.
The Thailand-Sri Lanka FTA is anticipated to take effect in the first quarter of 2025.
Additionally, Thailand is advancing its discussions with South Korea under the Economic Partnership Agreement (EPA) framework, which aims to extend market access beyond the existing ASEAN-Korea FTA and the Regional Comprehensive Economic Partnership. The EPA will explore new areas of collaboration, including digital trade and supply chains, according to Mr. Pichai.
The government has requested South Korea to open its markets to a variety of high-quality agricultural exports from Thailand, including tropical fruits (mangoes, mangosteens, and pineapples) as well as fresh and processed shrimp and chicken.
To strengthen bilateral ties, both countries plan to reactivate the Joint Trade Committee (JTC), which has been dormant for over 20 years. The committee’s goal is to address trade and investment challenges to facilitate bilateral trade, with a meeting scheduled to take place in Thailand later this year.
Negotiations with Bhutan are progressing, focusing on trade liberalization, with two rounds already completed and a target for finalization in 2025.
Meanwhile, discussions on the ASEAN-Canada FTA have progressed through nine rounds, with agreements reached on trade services and customs facilitation. The aim is to finalize these negotiations this year.
Thailand is also keen on enhancing existing FTAs, including the ASEAN Trade in Goods Agreement, as well as its agreements with India and Peru.
Additionally, there is a strong interest in establishing new economic partnerships that could lead to future FTAs, particularly with the UK, following the signing of a memorandum of understanding in September 2024 aimed at enhancing trade and investment relations.