12-9-2023 (BANGKOK) Thailand is gearing up for discussions on a potential free trade agreement with the European Union (EU), known as the Thai-EU FTA. The negotiations are set to commence next week, with the goal of finalizing the deal within a two-year timeframe.
Auramon Supthaweethum, the director-general of the Department of Trade Negotiations under the Ministry of Commerce, confirmed that preparations are underway for the inaugural round of talks scheduled to take place from September 18th to 22nd in Brussels, Belgium. The Thai delegation, led by the Ministry of Commerce, will engage in meetings at the head of delegation level, as well as participate in 19 expert-level subcommittee meetings.
These subcommittees will cover a wide range of areas, including trade in goods, rules of origin, customs procedures and trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, trade in services and investment, digital trade, intellectual property, competition and subsidies, and government procurement.
Additional topics of discussion include trade and sustainable development, small and medium-sized enterprises, state-owned enterprises, energy and raw materials, sustainable food systems, transparency and good regulatory practices, dispute settlement, and various provisions related to institutions and exceptions.
Thailand’s negotiation team will comprise representatives from relevant government agencies, such as the Ministry of Commerce, the Ministry of Finance, the Ministry of Agriculture and Cooperatives, the Ministry of Industry, the Ministry of Natural Resources and Environment, the Ministry of Labour, and the Ministry of Foreign Affairs.
The Institute of Future Studies for Development, which conducted a preliminary assessment of the potential benefits and impacts of the Thai-EU FTA, anticipates an annual expansion of Thailand’s GDP by 1.28%. The agreement is also expected to boost exports by 2.83% annually and increase imports by 2.81% annually. Moreover, it is projected to attract foreign investment, create job opportunities in Thailand, and elevate international standards in areas such as intellectual property rights, labor rights, environmental standards, and sustainability.
Ms. Auramon emphasized that the Department of Trade Negotiations will engage in comprehensive consultations with stakeholders to ensure a mutually beneficial outcome.
In the first seven months of this year, Thailand-EU trade reached a total value of US$24.7 billion. Thailand exported goods worth $12.9 billion to the EU, while importing goods valued at $11.8 billion from the EU.
Key Thai exports to the EU include computers and components, air-conditioners and parts, jewelry, electronic circuit boards, and rubber products. Notable Thai imports from the EU consist of machinery and components, pharmaceutical and medical products, chemicals, and electrical machinery and components.
