ANN/THE NATION – Thailand is set to sign a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) next week at the World Economic Forum in Davos, Switzerland.
Thai Commerce Minister Pichai Naripthaphan announced that the signing ceremony is scheduled for January 23, after which the agreement will be submitted to the Thai Parliament for ratification, a process expected to take about a year.
“This FTA marks a significant milestone for Thailand, opening new avenues for trade and investment,” said Pichai.
“We anticipate that this agreement will boost Thailand’s gross domestic product by more than three per cent by increasing foreign investment and exports.”
The EFTA currently has four member countries: Iceland, Liechtenstein, Norway and Switzerland. They have developed one of the largest networks of FTAs, spanning over 60 countries and territories, including the European Union (EU).
The Thailand-EFTA deal is expected to pave the way for the expedited conclusion of the Thailand-EU FTA negotiations, as both agreements will share a common foundation.
In 2023, the EFTA region was Thailand’s 16th largest trading partner, with total trade valued at USD9.89 billion.
Thailand exported USD4.39 billion worth of goods to EFTA while importing USD5.49 billion, resulting in a trade deficit of USD1.10 billion.
In the first 11 months of 2024, trade with the EFTA increased to USD11.47 billion, representing 2.06 per cent of Thailand’s total global trade. However, the trade deficit widened to USD3.22 billion, with exports reaching USD4.12 billion and imports reaching USD7.34 billion.
Key Thai exports to EFTA: Gems and jewellery, watches and components, iron, steel and products, canned and processed seafood, and travel goods Key imports from EFTA: Machinery, watches and components, meat for consumption, medical and pharmaceutical products, and fertilisers and pesticides
The Thai government has approved in principle the establishment of an FTA Fund to support sectors and individuals potentially impacted by trade liberalisation. The Ministry of Commerce is currently drafting the necessary legislation for Cabinet approval.
The Thailand-EFTA FTA covers a wide range of areas, including market access for goods and services, investment, intellectual property rights, competition policy, government procurement, and sustainable development.
