Thai govt accelerates Thai-European FTA negotiations
The Thai government is speeding up negotiations for the Thai-European Free Trade Association (EFTA) to conclude within the current year. This information followed a discussion between Commerce Minister Phuntham Wechayachai and Swiss Ambassador Pedro Zwahlen.
The minister revealed that the talks are being hastened following the policy of Prime Minister Srettha Thavisin’s administration, which desires to expand opportunities and bolster the competitiveness of Thai firms.
EFTA is a collective of four nations, namely Switzerland, Norway, Iceland, and Liechtenstein. The ongoing negotiations are anticipated to wrap up within this year. Upon completion, the Free Trade Agreement (FTA) between Thailand and EFTA will mark Thailand’s debut FTA with European countries and its 15th FTA overall, encompassing a total of 22 nations.
The FTA is expected to render benefits to both Thailand and Switzerland, along with other EFTA members, by aiding in the facilitation of trade and investment opportunities. It will also enhance standards to match international levels in response to changing global trade regulations that prioritise sustainable development. This is in line with the government’s intention to support farmers and small businesses in their adaptation to these changes and the improvement of their living standards.
From January 30 to February 2, Thailand played host to the eighth negotiation round, focusing on growing trade and investment opportunities and boosting Thailand’s competitiveness. The subgroups comprised 11 working groups, including trade in goods, rules of origin, trade remedies, trade in services, investment, government procurement, intellectual property rights, trade and sustainable development, horizontal issues, institutional provisions and dispute settlement, cooperation and capacity building, and small and medium-sized enterprises (SMEs).
Both parties have reported significant progress and maintained a positive outlook throughout the talks. The forthcoming negotiation round is slated for next month.
Phumtham stated that the government is driving investment in transportation and logistics infrastructure, encompassing land, water, rail, and air, to attract investment and enhance national competitiveness. In a related move, the government is open to investment from Switzerland and other EFTA member nations, particularly in promising sectors like technology and innovation. Swiss investors are also encouraged to use Thailand as a hub for trade and investment in Asia.
Trade negotiations
In the previous year, Switzerland emerged as Thailand’s second-largest trading partner in Europe, with trade value reaching US$8.95 billion. Exports to Switzerland amounted to US$3.97 billion, while imports from Switzerland totalled US$4.98 billion. The overall trade value between Thailand and EFTA stood at US$9.88 billion. Exports to Efta reached US$4.39 billion, while imports from Efta were valued at US$5.5 billion.
The primary exports to the EFTA region include gems and jewellery, watches and components, air conditioners and parts, travel goods, automobiles, equipment and components, processed and canned seafood, electrical appliances and components, plastic products, computers and computer parts, electric circuits, iron and steel, cosmetics, and soap and skincare products.
Key imports from EFTA encompass precious stones and jewellery, gold bars, watches and components, pharmaceutical and medical products, machinery and components, scientific instruments and tools, medical equipment, electrical machinery and components, electrical circuits, chemical products, soap, detergent, cosmetics, animal meat for consumption, fertilisers, pesticides for plant and animal control, and fresh, chilled, frozen, processed, and semi-finished aquatic animals.
In 2023, EFTA ranked as the 14th largest source of foreign direct investment applications, with total investment pledges of 2.96 billion baht (US$81 million) for 20 projects, as per the Board of Investment. Switzerland was positioned as the 15th largest foreign investor and the top investor among EFTA member nations, with total investment pledges of 1.74 billion baht (US$ 48 million) for nine projects.
