Representatives of Thailand and the European Free Trade Association (Efta) will seal their free trade agreement on Jan 23 during the World Economic Forum in Davos, Switzerland, according to the Ministry of Commerce.
The pact will bring to 16 the number of free trade agreements (FTAs) covering 23 countries or economic groups, the ministry said.
Efta comprises four member states that are not members of the European Union: Switzerland, Norway, Iceland and Liechtenstein.
The agreement goes beyond trade and investment, as it is a high-standard agreement aligned with sustainable development, according to Poonpong Naiyanapakorn, director-general of the ministry's Trade Policy and Strategy Office.
The FTA aims to provide Thai entrepreneurs with a competitive edge, paving the way for future deals with key trading partners, such as the European Union.
From January to November 2024, trade between Thailand and Efta tallied US$11.5 billion, a 24.9% increase year-on-year, accounting for 2.05% of Thailand's international trade.
The value of Thai exports to Efta stood at $4.12 billion, while Thai imports from Efta were worth $7.35 billion.
Major exports included jewellery, watches, steel products, canned seafood, and travel goods, while key imports were gemstones, watches, meat products, pharmaceuticals, and fertilisers.
Commerce Minister Pichai Naripthaphan has prioritised FTA negotiations this year.
He called for accelerated negotiations, including efforts to forge pacts with the EU, South Korea, Bhutan, the UAE and Asean-Canada.
Moreover, Mr Pichai wants to foster collaborations that lead to future agreements with potential trading partners, including the UK and the Eurasian Economic Union, which consists of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.
Thailand also plans to upgrade existing FTAs, such as the Thailand-Peru FTA and Asean trade agreements with China, India and South Korea that meet modern trade facilitation requirements.
In the first 10 months of 2024, Thailand's global trade was valued at $508 billion, with FTA partner countries accounting for $299 billion or 59% of total trade.
Exports under FTA privileges amounted to $70 billion, a 1.1% increase year-on-year, accounting for 84.6% of total FTA-eligible exports.