In order to secure a deal by 2025, Thailand and the EU will relaunch their free trade agreement (FTA) negotiations in July.
Following a video conference with EU trade commissioner Valdis Dombrovskis, Thailand’s commerce minister, Jurin Laksanawisit, declared that “today is a historic day” that the country and 27 other EU members had decided to resume free trade agreements (FTA) negotiations after nearly ten years of effort.
According to Jurin, who serves as both a deputy prime minister and a senior official, Thailand will host the first senior-level gathering this year in July. The Department of Trade Negotiations (DTN) director-general Oramon Sapthaweetham will oversee the FTA negotiations with EU representatives encompassing trade, services, investment, and other topics.
The FTA will be approved by each country when all issues have been resolved before being ratified and signed.
Following Jurin’s visit to Brussels in January to create the framework for discussions with Dombrovskis, the conversation has resumed.
The Cabinet approved resuming the halted negotiations on February 14.
According to the trade minister, the FTA between Thailand and the EU will remove duties on Thai exports to 27 European nations. Automobiles and their components, electronics, clothing, textiles, food, rubber, chemicals, and plastics will all benefit greatly from the agreement.
Additionally, he claimed that it will create chances for the service sector in industries where Thailand is an expert, like tourism, food manufacturing, and wholesale and retail commerce. Zero import duties will help Thailand’s industrial industry, especially when it comes to chemicals and machinery.
He added that mutual investment will be advantageous to both parties, with Thailand getting knowledge transfer and innovation from EU countries.
“Historic day” as Thailand begins stalled FTA negotiations with the EU
With 18 nations, Thailand currently has 14 FTAs. The new FTA with the EU will bring the total to 45 partner nations.
The EU, which has a population of about 500 million, is Thailand’s fourth-largest trading partner, accounting for US$41 billion (1.41 trillion baht) in total commerce in 2022, or 7% of Thailand’s global trade. Thailand has a 150 billion baht trade surplus with the EU last year.
