Thailand is poised to commence negotiations aimed at finalizing a free trade agreement (FTA) with the Eurasian Economic Union (EAEU). Commerce Minister Phumtham Wechayachai made this announcement on July 24 following a meeting with Arman Issetov, Kazakhstan’s ambassador to Thailand, at Government House.
During their discussions, both parties explored strategies to enhance bilateral cooperation across various sectors of mutual interest, including trade, investment, and tourism. They also deliberated on establishing a Joint Commission on Trade and Economic Cooperation between Thailand and Kazakhstan.
The Thai delegation expressed its eagerness to initiate FTA negotiations with the EAEU and sought Kazakhstan’s support in this endeavor. The EAEU, which was established in 2015, aims to bolster economic cooperation and improve living standards among its member countries, which include Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Collectively, these nations are home to nearly 200 million people and boast a combined GDP of approximately $5 trillion.
Minister Phumtham noted that Thailand is also in discussions with Kazakhstan regarding the export of agricultural products and animal feed, given the rising demand for animal feed in Kazakhstan. Thai animal feed products are recognized for their high quality and competitive pricing.
Additionally, both countries can take advantage of the visa exemption agreement signed in April 2024 to further expand economic and investment collaboration.
Kazakhstan, recognized as the largest economy in Central Asia, not only ranks first in GDP and purchasing power but also serves as a crucial business and logistics hub in the region. It presents Thai companies with valuable opportunities for trade and investment, acting as a gateway to other Central Asian markets.
Minister Phumtham is planning to visit Kazakhstan from August 13-18 to sign a memorandum of understanding on economic cooperation between Thailand and Kazakhstan, as well as to engage with business leaders in the transportation and logistics sectors.
In 2023, Kazakhstan emerged as Thailand’s largest trading partner in Central Asia, with total trade amounting to $172 million, representing 0.03% of Thailand’s overall trade. Thai exports to Kazakhstan totaled $76 million, while imports from Kazakhstan reached $96 million.
Notable exports from Thailand include vehicles and automotive parts, rubber products, gems and jewelry, machinery and mechanical components, and electrical appliances. On the other hand, key imports from Kazakhstan comprise crude oil, coal, iron ore, chemical products, and minerals.