Thailand is nearing completion of a trade deal with non-EU countries
Thailand Business News - 04 March 2024
Thailand is nearing completion of a trade deal with non-EU countries
By Borris Sullivan
Thailand is close to finalizing a free-trade agreement with Switzerland, Norway, Iceland, and Liechtenstein under the European Free Trade Association (EFTA) by the end of the year.
Thailand is currently negotiating with four non-EU countries – Switzerland, Norway, Iceland, and Liechtenstein – as part of the European Free Trade Association (EFTA). In addition, negotiations are also underway with the UK, Turkey, Pakistan, Sri Lanka, and Bangladesh to finalize the terms of the Free Trade Agreements (FTAs).
The FTAs would allow Thailand to access new markets and expand its exports, especially in the sectors of agriculture, food, automotive, textiles and electronics. The FTAs would also reduce tariffs and non-tariff barriers, as well as enhance cooperation on trade facilitation, investment, services and intellectual property rights.
The Ministry of Commerce expects that the FTAs would increase Thailand’s gross domestic product (GDP) by 1.3% and its exports by 3.9% in the next five years. The FTAs would also create more than 200,000 jobs and generate an additional income of 260 billion baht for Thai workers.
The FTAs are part of Thailand’s strategy to diversify its trade partners and reduce its dependence on a single market. Thailand is also a member of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade bloc that comprises 15 countries in Asia-Pacific.
