Thailand’s Free Trade Agreement Negotiations with the EU: Current Status and Implications
Despite potential delays, Thailand continues negotiations with the European Union for a comprehensive free trade agreement amid human rights concerns.
Thailand is currently engaged in negotiations for a free trade agreement (FTA) with the European Union (EU), a critical development for its export-oriented economy.
The FTA talks have been influenced by various geopolitical and economic factors, including human rights issues, particularly following the deportation of Uyghurs from Thailand to China.
On March 13, the European Parliament adopted a resolution condemning Thailand's actions regarding the deportation of Uyghurs, urging the European Commission to utilize the ongoing FTA negotiations to promote reforms in Thailand's lese majeste laws, the release of political prisoners, and to cease such deportations.
Analysts anticipate that this resolution could lead to some delays in the negotiations; however, they do not expect it to derail the process completely.
Somjai Phagaphasvivat, an independent political and economic analyst, expressed optimism about the eventual signing of the FTA, citing the shifting trade dynamics due to U.S. trade policies that have prompted both Thailand and the EU to deepen their trade relations outside of the American sphere of influence.
The negotiations around the Thai-EU FTA are progressing within the framework of the Partnership Cooperation Agreement, a preliminary step necessary before formal FTA discussions can commence.
For the FTA to be finalized, it requires approval from the Council of the EU, comprising ministers from all EU member states, and must be ratified by all 27 member countries.
Prof. Thitinan Pongsudhirak from Chulalongkorn University indicated that while the Uyghur deportation issue is significant, it is unlikely to halt the FTA negotiations.
However, he emphasized that this matter, alongside concerns about political prisoners and human rights, could necessitate increased efforts from Thailand to articulate its position and justify its actions to European negotiators.
The Thai government also faces pressure to align its human rights standards with those of the EU, which could complicate negotiations.
Prof. Thitinan pointed out that if the EU imposes non-trade conditions related to human rights, it could hinder progress toward a successful agreement.
The ongoing geopolitical context reveals that the EU, which is experiencing an economic slowdown, is eager to secure new markets and business opportunities.
The FTI chairman, Kriengkrai Thiennukul, emphasized that despite the Uyghur deportation issue being controversial, it should not dictate the terms of the FTA negotiations, which are fundamentally rooted in mutual economic interests.
Trade between Thailand and the EU was valued at approximately USD 43.5 billion in 2024, with Thailand exporting goods worth USD 24.2 billion to the EU, while importing USD 19.3 billion.
The major exports include computers, gems, air conditioning units, rubber products, and automobiles, while imports largely consist of machinery, pharmaceuticals, and chemicals.
The Department of Trade Negotiations in Thailand confirmed that the FTA discussions are ongoing and scheduled to continue, with the next round set to be hosted by the EU from March 31 to April 4. With Thailand positioned as the EU's fourth-largest trading partner, the strategic importance of a successful FTA agreement continues to be underscored against the backdrop of evolving global trade relations.
The FTA talks have been influenced by various geopolitical and economic factors, including human rights issues, particularly following the deportation of Uyghurs from Thailand to China.
On March 13, the European Parliament adopted a resolution condemning Thailand's actions regarding the deportation of Uyghurs, urging the European Commission to utilize the ongoing FTA negotiations to promote reforms in Thailand's lese majeste laws, the release of political prisoners, and to cease such deportations.
Analysts anticipate that this resolution could lead to some delays in the negotiations; however, they do not expect it to derail the process completely.
Somjai Phagaphasvivat, an independent political and economic analyst, expressed optimism about the eventual signing of the FTA, citing the shifting trade dynamics due to U.S. trade policies that have prompted both Thailand and the EU to deepen their trade relations outside of the American sphere of influence.
The negotiations around the Thai-EU FTA are progressing within the framework of the Partnership Cooperation Agreement, a preliminary step necessary before formal FTA discussions can commence.
For the FTA to be finalized, it requires approval from the Council of the EU, comprising ministers from all EU member states, and must be ratified by all 27 member countries.
Prof. Thitinan Pongsudhirak from Chulalongkorn University indicated that while the Uyghur deportation issue is significant, it is unlikely to halt the FTA negotiations.
However, he emphasized that this matter, alongside concerns about political prisoners and human rights, could necessitate increased efforts from Thailand to articulate its position and justify its actions to European negotiators.
The Thai government also faces pressure to align its human rights standards with those of the EU, which could complicate negotiations.
Prof. Thitinan pointed out that if the EU imposes non-trade conditions related to human rights, it could hinder progress toward a successful agreement.
The ongoing geopolitical context reveals that the EU, which is experiencing an economic slowdown, is eager to secure new markets and business opportunities.
The FTI chairman, Kriengkrai Thiennukul, emphasized that despite the Uyghur deportation issue being controversial, it should not dictate the terms of the FTA negotiations, which are fundamentally rooted in mutual economic interests.
Trade between Thailand and the EU was valued at approximately USD 43.5 billion in 2024, with Thailand exporting goods worth USD 24.2 billion to the EU, while importing USD 19.3 billion.
The major exports include computers, gems, air conditioning units, rubber products, and automobiles, while imports largely consist of machinery, pharmaceuticals, and chemicals.
The Department of Trade Negotiations in Thailand confirmed that the FTA discussions are ongoing and scheduled to continue, with the next round set to be hosted by the EU from March 31 to April 4. With Thailand positioned as the EU's fourth-largest trading partner, the strategic importance of a successful FTA agreement continues to be underscored against the backdrop of evolving global trade relations.
