Thai Trade Minister Jurin Laksanawisit and EU Trade Commissioner Valdis Dombrovskis announced that both sides have agreed relaunch negotiations for a free trade agreement (LAC) between Thailand and the European Union, with the aim of concluding the talks in the first quarter of this year.
Jurin called the meeting “historic” as it was the first time that political representatives from both sides agreed to relaunch free trade talks. He will now seek Cabinet backing to resume trade talks, while Dombrovskis will seek approval from all 27 EU member states.
This marks an important step forward for Thailand, which has been seeking a free trade agreement with the European Union for almost 10 years. Negotiations started in March 2013 but were suspended the following year. If the resumption of talks leads to an agreement, Thailand will become the third ASEAN country to have an FTA with the EU, after Vietnam and Singapore.
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The EU is Thailand’s fourth largest trading partner, after China, the United States and Japan. Last year, bilateral trade between Thailand and the EU amounted to 1.3 trillion baht ($41 billion), accounting for 7% of Thailand’s total trade.
Thai exports to the EU last year amounted to 843.3 billion baht, with key products including computers, computer equipment and components, precious stones and jewelry, air conditioners and components, rubber products, chicken and electronic circuit boards.
if the FTA goes through, Thailand will become the third ASEAN country to have an FTA with the EU, after Vietnam and Singapore
Also in 2022, Thai imports from the EU amounted to 594.2 billion baht, with major import products including machinery and components, pharmaceuticals, chemicals, electrical machinery and tools.
