Ambassador confirms EU's FTA interest

Ambassador confirms EU's FTA interest

Bloc set to restart stalled negotiations

The EU ambassador to Thailand has affirmed that the bloc is poised to resume long-delayed free trade agreement (FTA) negotiations between Thailand and the EU.

Pirkka Tapiola, the EU ambassador to Thailand, said the EU is ready to renew talks after five years on ice, said Deputy Prime Minister Somkid Jatusripitak, who met Mr Tapiola yesterday. Both sides also agreed to resume FTA negotiations between Asean and the EU.

Mr Tapiola said the negotiations will commence after the EU settles on a new European Commission next month.

FTA negotiations between Thailand and the EU, the country's third-largest trading partner, have been on hold since the 2014 coup and introduction of military rule. The EU protested the suspension of democracy.

Instead, the EU pursued trade negotiations with other Asean nations and has signed FTAs with Singapore and Vietnam.

Thailand is also ready to conduct bilateral strategic partnerships with individual members of the EU, Mr Somkid said, noting that FTA talks take time.

He said the EU has shown interest in taking a greater role in trade and investment in Asean and is keen to join the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy and the Regional Comprehensive Economic Partnership.

Mr Somkid said EU investors also expressed intent to use the Eastern Economic Corridor as a production base to export to other countries in the region. The EU agreed to help promote Thailand's 12 targeted industries that focus largely on high technology.

The targeted industries are cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; defence; and education development.

The EU is both Thailand's and Asean's third-largest trading partner, while the EU is the top investor in Asean.

According to the latest EU-Asean Business Sentiment Survey, EU businesses consistently see Asean as the region with the best economic opportunities, with 51% of respondents calling it the best economic opportunity in 2018 and 53% in 2019 (China followed with 26% and 27%).

In 2019, 70% of EU respondents said they would be expanding business operations in Asean, up from 59% in 2018.

Some 94% of EU businesses urged the EU to accelerate trade negotiations with Asean nations in 2019.

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