Thailand and Peru have reported substantive progress in negotiations to upgrade their longstanding trade relationship into a comprehensive Free Trade Agreement (FTA), with both governments aiming to conclude key issues by the end of the year.

Commerce Minister Suphajee Suthumpun and Peru’s ambassador to Thailand reaffirmed shared commitments to accelerate discussions covering expanded market access for goods, services and investment, underscoring the strategic importance of deepening economic ties between Southeast Asia and South America.

The ongoing talks build on a framework economic partnership first established more than two decades ago, under which preferential tariffs on many products have already been implemented, and aim to widen liberalisation to a far broader set of sectors.

Officials highlighted that modernising and finalising the FTA would create new opportunities for exporters and investors in both countries, particularly in machinery, agriculture, processed foods and automotive sectors, while enhancing supply chain connections between Asia and Latin America.

The agreement is also expected to support growth in bilateral trade, which through the first eight months of 2025 saw Peru ranked among Thailand’s most dynamic partners in the Americas, with Thailand posting a trade surplus reflecting strong demand for Thai manufactured goods.

Both sides have expressed confidence that resolving outstanding core issues ahead of the year-end deadline will provide a significant boost to economic engagement and signal a stronger, more balanced partnership as Thailand and Peru celebrate decades of diplomatic and commercial cooperation.