Thailand and the European Union (EU) on Wednesday announced the relaunch of free trade agreement (FTA) negotiations, with the aim of concluding the talks within two years.
Speaking after a video conference with Valdis Dombrovskis, executive vice-president of the European Commission and the EU trade commissioner, Commerce Minister Jurin Laksanawisit said a Thai-EU FTA would cover trade in goods, services and investment, proving mutually beneficial.
"Thailand is expected to greatly benefit from the pact once the tariff on Thai exports to the 27 EU countries is eliminated, giving Thailand a competitive edge compared with countries that do not have an FTA with the EU. The specific sectors that should benefit are automobiles and components, electronic equipment, textiles, food, rubber, chemicals and plastics," said Mr Jurin.
He said service sector opportunities would be created in areas that Thailand has expertise, such as wholesale and retail trade, food production, and tourism, among others.
The import of raw materials would see tariffs eliminated, allowing the manufacturing sector in Thailand to reduce production costs, particularly for machinery, equipment and chemicals, said Mr Jurin.
In addition, he said both sides would benefit from mutual investment, with Thailand receiving technology transfers and innovation.
This agreement should play a crucial role in attracting global investors to invest in Thailand, increasing investment and boosting the country's GDP, said Mr Jurin.
FTA negotiations with the EU were put on hold following the 2014 coup as the EU protested against what it deemed to be a suspension of democracy.
Trade between Thailand and the EU tallied US$41 billion in 2022, accounting for 7% of Thailand's total trade.
Exports to the EU totalled $22.7 billion last year, up 5.17% from the year before.
Key export products included computers, computer equipment and components, gems and jewellery, air conditioners and components, rubber products, and electronic circuit boards.
Thailand has 14 FTAs in place with 18 countries, including the Regional Comprehensive Economic Partnership, which took effect at the start of last year.