The Commerce Ministry is aiming to sign three free trade agreements (FTA) this year, including two new agreements with Sri Lanka and the European Free Trade Association (EFTA).
The other agreement represents an upgrade to the existing Asean-Australia-New Zealand FTA.
According to Chotima Iemsawasdikul, director-general of the Trade Negotiations Department, her department has expedited negotiations to align with the government's policy led by Prime Minister Srettha Thavisin who wishes to create more opportunities and increase competitiveness for Thai businesses.
The department aims to sign the Thai-Sri Lanka FTA in early February this year, which will require Mr Srettha to pay an official visit to Sri Lanka on Feb 3-4 to witness the formal FTA signing ceremony. The agreement will then be presented to parliament for its consideration and ratification, a process that typically takes about 60 days.
Both parties will later announce a 50% reduction in import tariffs on all listed goods included in the negotiations to 0%. Thailand included 10,000 items in the negotiations, while Sri Lanka included 8,000 items.
Products from Thailand that are expected to benefit from reduced tariffs include cars and car parts, paper, rubber gloves, processed food, animal feed, textiles, machinery, electrical appliances, metals, and plastics.
Businesses in the service sector that are expected to benefit include finance, insurance, computers, construction, tourism, and research and development (R&D). Industries that will gain an advantage in terms of investment include food processing, cars and car parts manufacturing, electronic components, textiles, batteries, and medical equipment.
According to Ms Chotima, Thailand is expected to conclude the negotiations for the Thai-European Free Trade Association (EFTA) by April this year, with the goal of signing the agreement in June. Efta comprises four countries: Switzerland, Norway, Iceland, and Liechtenstein.
According to Ms Chotima, the final FTA scheduled to be signed this year is the Asean-Australia-New Zealand FTA, which represents an upgrade to the existing agreement, covering a broader range of goods, services, and investments.
Given the department's negotiation plans for 2024, Ms Chotima said plans are afoot to accelerate negotiations for FTAs, with the Thai-EU FTA being a priority for the government. The goal is to conclude the negotiations for the Thai-EU FTA within 2025, with the government emphasising swift progress in response to the private sector's needs and anticipating significant benefits for Thailand, especially in exporting agricultural products to Europe.
The department also plans to initiate negotiations for additional FTAs, such as the Thai-South Korea FTA and Thai-Bhutan FTA. Negotiations with these nations are expected to commence in this year's second quarter.