Thailand signs free trade agreement with European Free Trade Association, boosting economic growth and investment.
Thailand has signed a free trade agreement with the European Free Trade Association (EFTA), boosting economic growth and investment.
Thai Prime Minister Peathongtharn Shinawatra attended the signing ceremony for the historic free trade agreement (FTA) between Thailand and the European Free Trade Association (EFTA) in Davos, Switzerland. This is the first such agreement concluded by Thailand in the past ten years and the first under the current government’s leadership.
After a long hiatus, the FTA marks Thailand’s return to active global trade negotiations. Remarkably, the agreement was reached in just three months of the Peathongtharn Shinawatra-led government.
The signing took place in the presence of high-level representatives of EFTA member countries: vice-president and Minister of Economy of Switzerland Guy Parmelin, Minister of Trade and Industry of Norway Cecilie Mårseth, foreign minister of Liechtenstein Dominik Hasler, and Secretary of State of Iceland Martin Eyjolfsson.
The agreement aims to strengthen economic ties and promote cooperation between Thailand and EFTA countries in various fields, including advanced technology, human capital development, SME support, and sustainable development. Special emphasis is placed on promising areas such as artificial intelligence and data centers.
Thailand’s Commerce Minister, Pichai Naripathaphaphun, described the signing of the FTA as an essential milestone symbolizing the country’s return to the global arena of trade negotiations. He emphasized that the agreement could be the foundation for future FTAs with the European Union and the United Arab Emirates.
Bilateral trade between Thailand and EFTA reached US$11.8 billion in 2024, accounting for 1.94% of Thailand’s total foreign trade. Thailand’s main exports to EFTA countries are gems, jewelry, watches, seafood, and electronic components. In turn, Thailand imports medical supplies, machinery, and scientific equipment from these countries.
The agreement will significantly boost trade and investment between Thailand and EFTA countries. Minister Pichai, citing figures of attracting more than 1 trillion Thai baht in foreign investment last year, predicts a significant future investment increase.
The FTA requires ratification by the Thai Parliament and necessary changes to the legal framework to enter into force. The Ministry of Commerce will hold a public hearing before submitting the agreement to parliament. Implementing the agreement is expected to take about a year.
The signing of a free trade agreement with EFTA is a strategic move by Thailand to diversify economic ties and strengthen the country’s position in a changing global economic environment. Special attention to the development of cooperation in high technology is evidence of Thailand’s desire to modernize its economy and integrate into global innovation processes.
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