Valdis Dombrovskis – Photo © European Union 2023
(BRUSSELS) – The EU and Thailand announced the relaunch of negotiations for an ambitious, modern and balanced free trade agreement (FTA) Wednesday, with sustainability at its core.
This announcement confirms the key importance of the Indo-Pacific region for the EU trade agenda, paving the way for deeper trade ties with the second largest economy in South-East Asia and further strengthening the EU’s strategic engagement with this burgeoning region.
EC vice-president Valdis Dombrovskis welcomed the relaunch: “A modern and dynamic FTA would lead to benefits for both sides, and strengthen EU trade ties with the Indo-Pacific region. It will boost the scale and sustainability of our trade, drive innovation and strengthen our supply chains.”
The EU and Thailand already have well-established trade relations, with clear potential for an even closer relationship: trade in goods was worth over 42 billion in 2022, while trade in services was worth over 8 billion in 2020. The EU is Thailand’s 4th largest trade partner; and Thailand, the second largest economy in the ASEAN region, is the EU’s 4th most important trading partner in the region.
The aim of the FTA will be to boost trade and investment by addressing a wide range of issues such as: market access for goods, services, investment and government procurement; swift and effective Sanitary and Phyto-Sanitary procedures; the protection of intellectual property rights including Geographical Indications, and the removal of obstacles to digital trade and trade in energy and raw materials, thereby supporting the digital and green transitions. The EU executive strsses that sustainability will be at the heart of the agreement, with ‘robust and enforceable disciplines on Trade and Sustainable Development (TSD)’.
The EU and Thailand are committed to advancing swiftly in the FTA talks and aim to hold a first round of negotiations in the coming months. The EU text proposals will be published after the first negotiating round, in line with our exemplary transparency policy. The EU will also commission a Sustainability Impact Assessment in support of the negotiations, to carry out an analysis of the possible economic, environmental, human rights and social impacts of the agreement, and to provide recommendations on how to maximise the expected positive effects, whilst minimising potential negative ones.
