The government is expediting Thai-European Free Trade Association (Efta) negotiations, with expections they will be concluded within this year.
Following a meeting with Swiss ambassador Pedro Zwahlen, Commerce Minister Phuntham Wechayachai said the ministry has expedited the talks to align with the policy of the administration of Prime Minister Srettha Thavisin, who wishes to create more opportunities and increase the competitiveness of Thai businesses.
Efta comprises four member states — Switzerland, Norway, Iceland and Liechtenstein. The negotiations are now underway and are expected to be finalised this year.
When concluded, the free trade agreement (FTA) between Thailand and Efta would be Thailand’s first FTA with European countries and Thailand’s 15th FTA, covering 22 nations in total.
This will be beneficial to both Thailand and Switzerland as well as the other Efta member states in facilitating trade and investment opportunities between trading partners and raising standards to the international level in response to the changing regulations of global trade which place importance on sustainable development.
This aligns with the government’s policy to help farmers and small businesses so they can adapt and have a better quality of life.
During Jan 30-Feb 2, Thailand hosted the eighth round of negotiations which focused on expanding trade and investment opportunities and enhancing Thailand’s competitiveness.
The subgroups consist of 11 working groups, namely: trade in goods; rules of origin; trade remedies; trade in services; investment; government procurement; intellectual property rights; trade and sustainable development; horizontal issues, institutional provisions and dispute settlement; cooperation and capacity building; and small and medium sized enterprises (SMEs).
Both sides have reported significant advancements and maintained a positive outlook throughout the talks. The next round of negotiations is scheduled to take place next month.
Mr Phumtham said the government is in the process of driving investment in transportation and logistics infrastructure, whether by land, water, rail or air, to attract investment and enhance the country’s competitiveness.
In a related development, the government welcomes investment from Switzerland including other Efta member countries, particularly in promising sectors such as technology and innovation.
Moreover, Swiss investors can use Thailand as a gateway for trade and investment in Asia.
Last year, Switzerland was Thailand’s second largest trading partner in Europe, with trade value tallying US$8.95 billion.
Exports to Switzerland totalled $3.97 billion, while imports from Switzerland amounted to $4.98 billion.
The total trade value between Thailand and Efta amounted to $9.88 billion.
Exports to Efta totalled $4.39 billion, while imports from Efta were valued at $5.5 billion.
Main exports to the Efta region are gems and jewellery, watches and components, air conditioners and parts, travel goods, automobiles, equipment and components, processed and canned seafood, electrical appliances and components, plastic products, computers and computer parts, electric circuits, iron and steel, cosmetics, and soap and skincare products.
Meanwhile, key imports from Efta include precious stones and jewellery, gold bars, watches and components, pharmaceutical and medical products, machinery and components, scientific instruments and tools, medical equipment, electrical machinery and components, electrical circuits, chemical products, soap, detergent, cosmetics, animal meat for consumption, fertilisers, pesticides for plant and animal control, and fresh, chilled, frozen, processed and semi-finished aquatic animals.
In 2023, Efta was the 14th largest source of foreign direct investment applications with total investment pledges of 2.96 billion baht for 20 projects, according to the Board of Investment.
Switzerland ranks the 15th largest foreign investor and the No.1 investor among Efta member countries with total investment pledges of 1.74 billion baht for nine projects.