Thailand has signed a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA), marking a major achievement in the country’s economic diplomacy.
The deal is expected to enhance competitiveness, boost exports, and attract investment in emerging industries such as artificial intelligence, data centers, and advanced manufacturing. Negotiations, which began two years ago, were expedited under the current administration and completed within three months.
Prime Minister Paethongtarn Shinawatra presided over the signing ceremony, highlighting the agreement’s potential to generate billions in economic benefits and position Thailand as a leading investment hub. Last year, foreign direct investments surpassed 1 trillion baht, and the FTA is expected to further increase these inflows by reducing tariffs and improving market access for Thai businesses.
Key Thai exports poised to benefit from the agreement include jewelry, watches, machinery, air conditioners, plastics, and rice. Meanwhile, Thailand is expected to import pharmaceuticals, chemicals, and scientific equipment from EFTA member nations. Trade between Thailand and EFTA countries reached $11.79 billion in 2024, representing 1.94% of Thailand’s global trade and a 19.22% year-on-year growth.
Commerce Minister Pichai Naripthaphan stated that the agreement enhances Thailand’s global trade position and strengthens its competitiveness against regional peers like Vietnam. He also noted that the FTA could pave the way for future agreements with the European Union, the United Arab Emirates, and other strategic partners.
The Ministry of Commerce will release the agreement’s details for public consultation before submitting it to Parliament, as required by the Constitution. Legal adjustments and regulatory changes are expected to be finalized within a year to allow implementation. Businesses are being urged to prepare to capitalize on the opportunities the FTA offers.
With exports growing by 5.4% in 2024, the government sees the agreement as a key driver of economic growth and innovation, ushering in what it describes as a "golden era" for Thailand’s economy.
NBT WORLD - Thailand Signs Historic FTA with European Free Trade Association