Thailand, UK endorse 'enhanced trade' pact
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Thailand, UK endorse 'enhanced trade' pact

British firms urged to increase investment

Mr Pichai, right, and Mr Alexander shake hands at the MoU signing ceremony for the enhanced trade partnership. The event was held at the Courtyard by Marriott Bangkok on Wednesday morning.
Mr Pichai, right, and Mr Alexander shake hands at the MoU signing ceremony for the enhanced trade partnership. The event was held at the Courtyard by Marriott Bangkok on Wednesday morning.

Thailand and the UK officially signed an enhanced trade partnership (ETP) on Wednesday, aimed at increasing trade and investment between the two nations.

Commerce Minister Pichai Naripthaphan and British Trade Minister Douglas Alexander signed a memorandum of understanding (MoU) on the ETP at the Courtyard by Marriott Bangkok on Wednesday morning.

"Minister Douglas and I signed the MoU on the ETP and approved an action plan outlining collaborative activities that both parties will undertake in 20 key sectors, such as agriculture, food, digital trade, education, and tourism," said Mr Pichai.

"The pact demonstrates the political commitment of both sides to expand comprehensive cooperation in trade and investment, both bilaterally and in international forums. It also serves as an important foundation for future free trade agreement [FTA] negotiations between the two countries."

Mr Pichai invited British businesses to increase their investment in Thailand, especially in industries that require advanced innovation and technology to modernise Thailand's export structure, increasing further investment in related industries and creating jobs around the country.

In 2023, the UK was Thailand's 22nd largest trading partner and its fourth largest in Europe (after Germany, Switzerland and the Netherlands), with the value of total trade reaching US$6.7 billion, resulting in a trade surplus for Thailand of $1.4 billion.

Thai exports accounted for $4.1 billion of the total, while imports from the UK were worth $2.6 billion.

Key exports include processed chicken, automobiles and auto parts, gems and jewellery, motorcycles and parts, and aircraft, spacecraft and related components.

Key imports include machinery and parts, integrated circuits, carbonated beverages and spirits, medical and pharmaceutical products, and medical science equipment.

Both countries also agreed to explore opportunities that could be delivered through a potential future FTA between the UK and Thailand, which has been continuously supported by the business sectors of both countries.

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