Commerce Ministry hopes to ink 3 FTAs by mid-2024

These agreements, which will tap into the markets of the Arab world, Europe and South Asia, are expected to generate trade worth more than 1 trillion baht.

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai said that the ministry has expedited the negotiations for these FTAs, including studying the possibility of new frameworks to facilitate trade and investment between Thailand and its partner countries. The government considers these agreements urgent and crucial for the nation.

According to Auramon Supthaweethum, director-general of the ministry’s Department of Trade Negotiations, these three markets are significant, with a combined trade value of up to US$31 billion annually. The Thailand-UAE FTA negotiations are in progress and are expected to conclude within this year following four rounds of talks.

The UAE has high purchasing power as it is home to a significant number of expatriates and foreign workers and welcomes many tourists. Moreover, its strategic location makes it a central logistics hub, facilitating Thai products' entry into the Middle Eastern and Central Asian markets. Studies indicate that the FTA could expand the Thai economy by up to 12.57 billion baht, leading to an increase in Thai exports to the UAE of between 21.61 billion and 30.13 billion baht. Products expected to benefit include food, textiles, clothing, leather goods, wood products, rubber, and plastics, as well as such services as transportation, finance, and business consultancies.

The Thailand-Sri Lanka FTA negotiations have reached their sixth round and are expected to conclude by early 2024. Sri Lanka is strategically located on the important maritime routes of the Indian Ocean, connecting Southeast Asia and South Asia with the Middle East, Africa, and Europe. With abundant natural resources, it could enhance trade opportunities and competitiveness for Thai entrepreneurs in the South Asian market. It could also serve as a production base for goods, spreading to Central Asia, Africa, and Europe.

The study also found that the FTA would increase the gross domestic product (GDP) by an additional 4.13 billion baht and Thailand's investment in Sri Lanka would increase by 1.91 billion baht annually. This market expansion would include such products as automobiles and parts, machinery and electrical appliances, metals, sugar, and plastics. Investment in industries would cover processed food, beverages, textiles, jewellery, and ornaments.

The final section is the Thai-EFTA agreement, which has been negotiated through 6 rounds of talks and should be concluded by mid-2024. This EFTA agreement has high standards, helping to enhance Thailand's competitiveness, attract investments, and foster beneficial cooperation.

Particularly promising sectors within the EFTA, such as technology and innovation, are expected to benefit Thailand. In terms of products, Thailand stands to gain in the agricultural and food sectors, including rice, maize, processed foods, pet food, tropical fruits, flour, vegetable oils, processed chicken, sugar, noodles and canned fruits and vegetables. In the industrial category, products such as garments, automobiles and parts, jewellery, and accessories are expected to benefit. Meanwhile, the service sectors that are expected to gain include tourism, finance, telecommunications, healthcare, and clean energy.