Update on EU-Thailand FTA Negotiations

    

Both sides exchanged updated information on bilateral trade and tariff data, which facilitated more informed discussions. The customs and trade facilitation group reached agreements on provisions related to the release of goods, simplified customs procedures, and advance rulings. However, issues such as temporary admissions, transit and transshipment, and fees and charges require further intersessional work. The trade remedies group made progress towards finalizing the text, agreeing on issues like the public interest test and the lesser duty rule in the anti-dumping/anti-subsidies section. Some outstanding issues in the bilateral safeguard section require further discussion.

Discussions on market access began, with both sides expressing optimism about reaching mutually beneficial agreements. The focus was on ensuring that the FTA would provide significant economic benefits while maintaining high standards for labor and environmental protection. Negotiations on government procurement and sustainable development also saw advancements. The teams consolidated texts on sustainable food systems and energy and raw materials, reflecting the EU's emphasis on sustainability in trade agreements.​

          

The EU is Thailand's fourth-largest trading partner, and Thailand is the EU's 28th largest trading partner worldwide. Key exports from Thailand to the EU include machinery, electronics, transport equipment, and food products, while the EU exports machinery, chemicals, and manufactured goods to Thailand. Negotiations for an EU-Thailand Free Trade Agreement were formally launched on 6 June 2013, aiming to address a wide range of issues, including market access for goods and services, investment, government procurement, intellectual property rights, and digital trade. Sustainability is a core component of the agreement, with both parties committed to high standards of labor and environmental protection. 

       

The initial rounds of negotiations were promising, with both parties expressing a strong commitment to enhancing bilateral trade and investment. However, the negotiations were put on hold in 2014 following a military coup in Thailand, which led the EU to suspend talks due to concerns over democratic governance and human rights. In the years that followed, Thailand underwent political changes, including a general election in 2019. This election prompted the EU to reconsider its stance, and in 2021, preliminary discussions resumed. 

       

These discussions aimed to establish a Joint Understanding Document to serve as a framework for further FTA negotiations. The formal relaunch of negotiations was announced in March 2023, reflecting the EU's strategic interest in strengthening ties with the Indo-Pacific region. The first round of renewed negotiations took place in Brussels in September 2023, followed by a second round in Bangkok in January 2024. These rounds laid the groundwork for the comprehensive discussions that followed.

      

The next steps in the EU-Thailand FTA  negotiations involve several key activities aimed at finalizing the agreement by 2025. Both parties will continue intersessional work to resolve outstanding issues, particularly in areas like rules of origin, customs and trade facilitation, and trade remedies. The upcoming round of negotiations is scheduled to take place in late March 2025 in Brussels and shall focus on finalizing the remaining provisions and addressing any unresolved issues from previous rounds. Both the EU and Thailand will engage in consultations with stakeholders, including businesses, civil society, and government agencies, to gather feedback and ensure that the agreement meets the needs of all parties involved. Once the text of the agreement is finalized, it will undergo a process known as legal scrubbing. This involves a detailed review of the text to ensure legal consistency and clarity.