Thailand and the European Free Trade Association (EFTA) are set to finalize a free trade agreement (FTA) in January next year, aimed at enhancing export opportunities and attracting more European investors to Thailand, as announced by the Ministry of Commerce on Saturday.
Minister Pichai Naripthaphan shared that successful negotiations have led to the planned Free Trade Agreement between Thailand and the EFTA, which consists of Switzerland, Norway, Iceland, and Liechtenstein.
This agreement represents a significant advancement in Thailand’s strategy to bolster trade relations, broaden export opportunities, and entice foreign investment, in alignment with Prime Minister Paetongtarn Shinawatra’s initiative to pursue FTAs with key trading partners.
Minister Pichai noted that negotiations, which began in 2022, have been completed within the targeted two-year timeframe.
The FTA encompasses 15 comprehensive areas, including trade in goods, rules of origin, trade facilitation, services, investment, intellectual property, public procurement, competition, sustainability, and SME development.
He highlighted that this marks Thailand’s first FTA with a European trade bloc, establishing modern standards and addressing sustainable development objectives. It is anticipated to pave the way for future agreements with other significant partners, including the European Union.
The Ministry of Commerce will submit the finalized agreement to the cabinet for approval, with plans to sign it at the upcoming World Economic Forum (WEF) in Davos, Switzerland, in January. Both Prime Minister Paetongtarn and Minister Pichai are expected to attend the event.
Upon parliamentary approval, the agreement will be ratified, facilitating its implementation to stimulate Thailand’s economic growth, as stated by the Minister.
From January to October of this year, trade between Thailand and the EFTA surpassed $10 billion, accounting for 2.03% of Thailand’s total global trade and reflecting a 23.22% year-on-year increase.
Thailand’s main exports to the EFTA consist of jewelry, watches, canned seafood, machinery, cosmetics, and rice, while imports primarily include gems, gold, pharmaceuticals, scientific equipment, and fresh seafood.
