A free trade agreement (FTA) with the EU would increase Thai exports and GDP rather than harm them, according to a study by an independent research organisation, the Institute of Future Studies for Development (IFD).
On Tuesday at a public hearing in Chiang Mai on the Thai-EU FTA, Taweechai Charoensedtasin, the IFD's director, said the institute's study found a Thai-EU FTA is estimated to boost GDP by 1.7% or 250 billion baht a year, and exports by 10-14% a year.
Thai products expected to reap benefits from a pact include automobiles and parts, garments, electronics, chemicals, rubber, plastic, food and processed food products, machinery and parts, construction and leather products.
Thai products likely to feel the pinch from the FTA would be dairy, sugar, tobacco and alcoholic drinks, he said.
FTA negotiations between Thailand and the EU were put on hold after the 2014 coup and for the subsequent military rule. The EU protested the suspension of democracy.
Thailand held general elections in March and a pro-army coalition of parties formed a government, officially ending five years of military rule.
The Commerce Ministry through the Trade Negotiations Department has been speeding up studies on the opportunities and challenges in reviving long-delayed trade talks between Thailand and the EU after the Council of the EU made a recent statement that the bloc aims to resume FTA negotiations with Thailand.
The department has scheduled public hearings nationwide this month and next.
The next hearing is scheduled for Oct 28 in Songkhla, then Nov 7 in Khon Kaen.
The initial hearing took place in the capital on Sept 23 and a final hearing may be held in Bangkok.
Auramon Supthaweethum, director-general of Trade Negotiations Department, said after public hearings have been held in all regions, the Commerce Ministry will propose proceeding with talks on a trade pact in December to the cabinet.
"Thailand needs to speed up FTA talks with the EU as the bloc has already signed FTAs with Singapore and Vietnam," she said. "A preliminary study found the more Thailand delays negotiations, the more export opportunities will be lost as the export product structures of Singapore and Vietnam are almost identical to Thailand's."
"In terms of challenges, based on the experiences of Vietnam, Singapore and Mercosur [the South American trade bloc comprising Argentina, Brazil, Paraguay and Uruguay], trade pacts with the EU contain relatively high standards and include e-commerce, trade competition, intellectual property and state procurement as well as market access for goods, services and investment."