Thailand-EU FTA considered as the first trade talks to be negotiated

Chatrudee Theparat

Thailand-EU FTA considered as the first trade talks to be negotiated

Thailand-EU Free Trade Area will be the first trade talks of the government to negotiate with, a move aimed at boosting the country's competitiveness amid intensified free-trade competition, especially from Vietnam which signed the trade agreement with the EU in 2019 and has got a wide range of benefit gains.

The Government House source, who declined to be named, said the first meeting of the International Economic Policy Committee on November 22, chaired by Deputy Prime Minister and Minister of Foreign Affairs Parnpree Bahiddha-Nukara, agreed to implement the first negotiation with EU for Thailand-EU Free Trade Area (Thailand-EU FTA).

“The committee agreed to accelerate Thailand-EU FTA. Clearly, analysts view Vietnam is under investment eyes of global companies due to its FTA with EU. For Thailand is losing its momentum because the agreement hasn't reached any conclusion.”

The European Union and Vietnam signed a Trade Agreement and an Investment Protection Agreement on 30 June 2019. The Trade Agreement came into force on 1 August 2020.

The agreement provides opportunities to increase trade and create jobs and growth on both sides by eliminating 99% of all tariffs; reducing regulatory barriers and overlapping red tape; ensuring protection of geographical indications; opening up services and public procurement markets, and; making sure the agreed rules are enforceable.

Mr Parnpree said the committee authorized the secretariat of the committee including the commerce and foreign ministries to set priority of the negotiation and Thailand’s strategy to each targeted country. The study is required to be proposed in the next meeting.

Agriculture and Cooperatives Minister Capt Thammanat Prompao said the ministry agreed that Thailand should conduct additional FTA. The ministry has concerns over the effect to the agricultural sector because the farm sector is fragile which the government should protect farmers.

Thailand has already enforced 14 FTAs to 18 countries. Also, the country plans to negotiate the total 12 draft of agreements such as Canada Turky and Sri Lanka which are expected to be concluded by next year.

The government plans to launch additional FTA talks such as the Gulf Cooperation Council (GCC) which includes six Arab countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates; Pacific Alliance and 55 countries in Africa.