Thailand races to seal free trade deal with EU within 2025

Commerce Minister Pichai Naripthaphan said on Friday that he had held talks with Maroš Šefčovič, the European Commissioner on Trade, Economic Security, Inter-institutional Relations and Transparency, on March 10 about advancing the Thailand-EU free trade negotiations.

The Thai Commerce Ministry is working to conclude negotiations this year to leverage the agreement for market expansion, cost reduction, enhancing business capabilities and attracting more European investors. 

Both parties emphasised the importance of establishing a trusted trade partnership through the free trade agreement (FTA), particularly amid geopolitical challenges and global economic uncertainties. They acknowledged the different levels of economic development between Thailand and the EU, which could affect FTA provisions, noting that flexibility and technical assistance from the EU would help expedite successful negotiations.

"The EU represents a major economic market and is a crucial trade partner for Thailand," Pichai said. "Successfully concluding the FTA negotiations would give Thai products a competitive edge in global markets, reduce production costs, attract investment, and stimulate economic growth for both parties."
 

The Thailand-EU FTA negotiations have already undergone four rounds, with two chapters finalised and discussions on market access for goods and services underway. 

The fifth round of negotiations will be hosted by the EU from March 31 to April 4, with both sides working closely to reach an agreement by December 25. 

Despite the complexity of negotiations, which include new issues such as government procurement, energy and raw materials, state enterprises and subsidies, trade competition, and sustainable food systems, the Commerce Ministry is working diligently with government agencies and consulting closely with the private sector to ensure successful negotiations that maximise benefits for Thai entrepreneurs, farmers, and consumers.

In addition to discussions with the commissioner, Pichai also met with EU Ambassador to Thailand HE David Daly to address other trade issues including World Trade Organisation (WTO) dispute resolution processes, the import of Thai agricultural products to EU markets, progress on amending the legislation against illegal fishing (IUU Fishing), and enhancing Thai entrepreneurs' capacity to comply with new EU regulations.
 

Pichai emphasised that expediting the Thailand-EU FTA is a significant step in strengthening the Thai economy, as Thailand aims to use this agreement to expand markets, reduce costs, enhance capabilities, and attract more European investors. 

The Thailand-EU FTA will be a key factor in creating economic security and helping Thailand better adapt to global competition.

The EU ranks as Thailand's fourth largest trading partner (after China, the US and Japan), with a total trade value of 25.19 billion euros (919.64 billion baht) in 2023. 

Thailand’s exports to the EU amounted to 14.99 billion euros, with key export items including machinery and transport equipment, miscellaneous manufactured articles and manufactured goods classified chiefly by material. Imports from the EU were valued at 10.2 billion euros, with key import items being machinery and components, medical and pharmaceutical products, aircraft and aviation equipment, chemicals, and electrical machinery.