Thailand-EU FTA to double trade significantly

Thailand plans to sign a free trade agreement (FTA) with the European Union (EU) this year. Experts believe this agreement could double trade between Thailand and the EU. Current trade makes up about 8% of Thailand's global exports, with a steady trade surplus. In the past, negotiations were stalled after a 2014 coup in Thailand. However, once Thailand established a new constitution and held elections, talks resumed. The EU emphasized that countries entering into an FTA must respect democratic principles and human rights. Analyst Somjai Phagaphasvivat noted that US trade policies under President Trump are prompting both Thailand and the EU to strengthen their trade ties. He mentioned the EU had delayed trade talks with countries like Uruguay and Brazil for years, but recent pressures have accelerated those discussions. Thailand seeks an FTA to compete better, especially with Vietnam, which already has an agreement with the EU. By eliminating duties on goods, the FTA is expected to enhance Thailand's exports significantly. Additionally, the FTA could boost foreign investment in Thailand by allowing companies to use it as a base for exports to the EU. The agreement will also push Thai companies to meet EU quality and environmental standards. However, there are concerns about some Thai products facing tough competition against EU goods. Still, products like seafood show strong potential in European markets. Negotiations on the FTA prioritize transparency and regulatory practices, and there is strong motivation from both sides to conclude them quickly. In 2024, the EU was a major trading partner for Thailand, with trade valued at $43.5 billion. Overall, the FTA aims to enhance Thailand's market access, investment opportunities, and competitiveness.