BANGKOK, Thailand –– Thailand’s Minister of Commerce, Phichai Naripthaphan, has announced the successful conclusion of Free Trade Agreement (FTA) negotiations between Thailand and the European Free Trade Association (EFTA), marking a historic milestone as Thailand’s first trade deal with a European bloc. The EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, November 30.
The agreement, finalized after two years of negotiations that began in 2022, aligns with the Thai government’s strategy to expand trade and investment opportunities with key partners. Prime Minister Paetongtarn Shinawatra prioritized the push for FTAs to enhance Thailand’s export capabilities, attract foreign investment, and reduce trade barriers for businesses.
The finalized FTA covers 15 key areas, including:
Trade in goods
Rules of origin
Trade facilitation
Trade remedies
Sanitary and phytosanitary measures
Technical barriers to trade
Trade in services
Investment
Intellectual property
Competition policy
Government procurement
Trade and sustainable development (environment and labor)
Technical cooperation and capacity building
Legal and dispute settlement issues
Support for small and medium-sized enterprises (SMEs)
Minister Phichai emphasized the agreement’s significance as a modern, high-standard FTA that incorporates sustainable development goals and positions Thailand competitively in the global economy. It also paves the way for future negotiations with other major partners, such as the European Union.
Next Steps
The agreement will be submitted to the Thai Cabinet for approval before being signed in January 2025 during the World Economic Forum in Davos, Switzerland. Once signed, it will require ratification by the Thai Parliament before coming into force.
Economic Impact
Trade between Thailand and EFTA from January to October 2024 amounted to USD 10.29 billion, accounting for 2.03% of Thailand’s global trade. Exports to EFTA totaled USD 3.79 billion, while imports were USD 6.51 billion, reflecting a 23.22% year-on-year increase.
Key exports included jewelry, watches, canned seafood, machinery, cosmetics, and rice. Major imports comprised precious metals, pharmaceuticals, machinery, and fresh or processed seafood.
Minister Phichai described the deal as a “New Year’s gift” for the Thai economy, boosting trade and investment opportunities while reinforcing Thailand’s position as a global trading hub. (TNA)
