To increase its trade and investment potential with numerous partners across the world, Thailand is pursuing an ambitious free trade agreement (FTA) agenda. With 18 economies, including China, Japan, India, Australia, and the European Free Trade Association (EFTA), the nation has previously signed 13 free trade agreements (FTAs).
With possible partners like the European Union (EU), Pakistan, Turkey, and Sri Lanka, Thailand is presently negotiating a number of further FTAs.
Main Points
To increase its trade and investment potential with numerous partners across the world, Thailand is actively pursuing an ambitious free trade agreement (FTA) policy.
The nation is currently negotiating numerous more free trade agreements (FTAs), including ones with the European Union, Pakistan, Turkey, and Sri Lanka. The nation has already signed 13 FTAs with 18 economies.
The goal of Thailand’s FTA policy is to boost its competitiveness, give enterprises more access to the market, and aid in the country’s recovery from the COVID-19 pandemic.
The nation also participates in the Regional Comprehensive Economic Partnership (RCEP), which was established in 2022 after being inked in November 2020. The RCEP, which covers 15 nations and 30% of world commerce and GDP, is the greatest free trade agreement in history. Thailand has been aggressively negotiating FTAs, both bilaterally and multilaterally, with a number of nations and areas. Thailand had ratified 13 free trade agreements (FTAs) with 18 nations or areas as of July 2023, accounting for nearly 60% of its overall trade value. These consist of:
Free Trade Area of ASEAN (AFTA)
China-ASEAN FTA
Comprehensive Economic Partnership between ASEAN and Japan
KORUS-ASEAN FTA
FTA between ASEAN, Australia, and New Zealand (AANZFTA)
AHKFTA (ASEAN-Hong Kong, China FTA)
Thailand-Australia Free Trade Agreement
Thailand-New Zealand Free Trade Agreement
JTEPA (Japan-Thailand Economic Partnership Agreement)
FTA between Thailand and Peru
FTA between Thailand and Chile
FTA between Thailand and India
Closer Economic Partnership Agreement (TPCEPA) between Thailand and Pakistan
Additionally, Thailand is exploring or negotiating FTAs with a number of other nations or regions, including:
Economic Partnership for the Region (RCEP)
Trans-Pacific Partnership Comprehensive and Progressive Agreement (CPTPP)
Thailand-EU Free Trade Agreement (EUTFTA)
Thailand-United Kingdom Free Trade Agreement
FTA between Turkey and Thailand
FTA between Thailand and Sri Lanka
Thailand’s FTA policy is to support the country’s economic recovery from the COVID-19 pandemic while also enhancing its competitiveness and resilience in the global market. Lower tariffs, fewer non-tariff obstacles, and more favourable rules of origin and standards are just a few benefits that the FTAs will bring Thai enterprises in relation to new and expanding markets. Additionally, the FTAs will increase the amount of high-quality FDI attracted to Thailand, promote innovation, and the digital transformation of the country.
The pursuit of free trade agreements by Thailand is consistent with its overarching objective to increase economic growth and competitiveness. These agreements give the nation access to new markets, lower trade obstacles, and draw FDI from abroad.
The Regional Comprehensive Economic Partnership (RCEP) is a notable FTA in which Thailand is a participant. A major amount of the world’s GDP and trade are covered by this agreement, which involves 15 nations. Thailand may take advantage of the RCEP’s large market potential and strengthen its economic cooperation with the region by joining.
Thailand is looking towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in addition to the Regional Comprehensive Economic Partnership (RCEP). Among others, this multilateral trade agreement includes nations including Japan, Canada, Australia, and Mexico. Thailand’s trade potential would increase with CPTPP membership, and its economic links with nations throughout the Pacific area would be strengthened.
Additionally, Thailand and the EU are actively negotiating an FTA. Access to one of the biggest consumer markets in the world would be made possible by a prospective EU-Thailand FTA, which would also improve trade ties between Thailand and EU member states. This agreement can promote economic expansion and broaden Thailand’s export market.
In addition, Thailand is looking into the possibility of an FTA with the UK. Thailand views the UK’s exit from the EU as an opportunity to forge a bilateral trade agreement with the UK, facilitating investment and trade between the two countries.
It is important to note that these FTAs aim to promote innovation and digital transformation in addition to traditional economic concerns. Thailand is aware of the value of adopting digitalization and utilizing technology to increase its global competitiveness. These contracts create opportunities for cooperation in fields including e-commerce, intellectual property, and innovation, laying the foundation for a more resilient and sustainable economy.
Thailand’s strong pursuit of free trade agreements reflects its dedication to fostering more trade, luring capital, and fostering economic growth. Thailand wants to strengthen its competitiveness, give firms more access to the market, and take advantage of new opportunities in the global economy by signing bilateral and multilateral FTAs. These accords are essential to Thailand’s status as a major player in the world of trade.
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SOURCE: https://www.thailand-business-news.com
