The Thai government wants a free trade pact with the EU by the end of the year to better compete with rivals.
The EU is a vital market for Thailand, as the 27 member countries have significant purchasing power, making it the world's second-largest economic bloc. The EU ranks as Thailand's fourth-largest trading partner after China, the US and Japan. Thai exports to the EU tallied $24.2 billion, while imports from the EU totalled copy9.3 billion, resulting in a trade surplus of $4.88 billion.
What are the opportunities for Thai businesses with an Eu pact?
The DTN said an EU-Thailand FTA will enhance trade and investment opportunities by reducing or eliminating trade and investment barriers, including tariff and non-tariff measures. The pact is expected to stimulate foreign investment and foster growth in key sectors where Thailand excels, such as wholesale and retail, food production and tourism, noted the department.
Key export products likely to benefit from the FTA include agricultural and processed products (such as rice and canned pineapples), seafood (shrimp and squid), electronics (computers and circuit boards), and industrial goods (automobiles, motorcycles and components), noted the DTN.
However, the department cautioned that certain Thai industries must prepare for increased competition from EU imports, such as machinery and equipment, chemicals, dairy products, financial and insurance services, telecom, environmental services, and professional services. To compete effectively, Thai exporters will need to enhance their standards to align with EU regulations, which highlight safety, environmental sustainability, labour rights and energy efficiency.
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February 24, 2025
