Thailand secures historic free-trade agreement with EFTA
Significant milestone in Thailand's trade history as its first FTA with European countries
Pichai Naripthaphan, Thailand's minister of commerce, on Friday announced the successful conclusion of negotiations on the Thailand-EFTA Free Trade Agreement following two years of talks, marking a significant milestone in Thailand's trade history as its first FTA with European countries.
Pichai confirmed that the EFTA (European Free Trade Association) Secretariat had officially declared the agreement complete, with negotiations covering a wide range of topics, agreed upon by the heads of delegations from member countries Switzerland, Norway, Iceland and Liechtenstein.
This agreement aligns with the Thai government's strategy to enhance trade relations and open new export opportunities while attracting foreign investment.
The Ministry of Commerce, through the Department of International Trade Negotiations, successfully addressed 15 key issues during negotiations, including trade in goods, rules of origin, trade facilitation, sanitary regulations, intellectual property, and sustainable development practices.
Pichai highlighted that the negotiations began in 2022 and took two years to complete, reflecting the government's commitment to expanding trade and investment through the establishment of FTAs, which aim to reduce barriers and build confidence in the business sector.
Notably, this FTA represents a groundbreaking chapter for Thailand, given that it is the country's first such agreement with a coalition of European nations. It adheres to modern trade principles focusing on sustainable development, paving the way for future trade discussions with major partners like the European Union.
After these developments, the results of the negotiations will be presented to the Cabinet for approval, aiming for a formal signing of the agreement during Prime Minister Paetongtarn Shinawatra's attendance at the World Economic Forum in Davos, Switzerland, in January 2025.
Subsequently, the government will seek approval from the National Assembly to ratify the agreement, which aims to deliver tangible benefits to the Thai economy swiftly.
For the period from January to October 2024, the value of Thailand's trade with EFTA reached US$10.29 billion, accounting for 2.03% of Thailand's total global trade, with significant exports including gems, jewellery, and processed seafood.
Major imports from EFTA included machinery, jewellery, and medical products. Pichai concluded by expressing gratitude to the teams involved in the negotiations, framing this agreement as a "New Year's gift" to the Thai people and economy, and reaffirming his confidence in the ongoing improvement of the nation’s trade and investment landscape.
