
The Thailand-Efta free trade agreement (FTA) is expected to take effect in early 2026 after the signing and ratification as well as regulatory adjustments, according to the commerce minister.
Commerce Minister Pichai Naripthaphan said following the FTA signing on Jan 23 in Switzerland, the ministry will submit the agreement to parliament for ratification.
Relevant agencies will prepare and adjust regulations to accommodate this FTA, he said.
The European Free Trade Association (Efta) comprises four member states: Switzerland, Norway, Iceland and Liechtenstein.
The process of ratification by all countries, along with domestic regulatory adjustments, is expected to take about one year.
Mr Pichai said this FTA would have no adverse effects on Thailand, with the benefits greatly outweighing any challenges.
The pact should also open doors to more European countries, he said.
For example, the fresh FTA should lay the groundwork for expediting FTA negotiations between Thailand and the European Union, said Mr Pichai.
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 trade.
The value of exports to Efta totalled $4.12 billion, while imports from the association 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.
In related news, he said the ongoing FTA negotiations with the United Arab Emirates (UAE) are expected to conclude this year, facilitating progress in data centre development and food security.
"The UAE has expressed interest in co-investing with Thailand in data centres and artificial intelligence, with an estimated investment of $50 billion," said Mr Pichai.
Regarding establishing an FTA support fund to assist those affected, he said the cabinet approved the initiative in principle.
The Commerce Ministry is drafting legislation for the fund, which will be submitted to the cabinet for further consideration.
The fund's initial budget will be drawn from the annual budget, but the exact amount has not been determined, said Mr Pichai.