Thailand is actively strengthening its global trade network with the announcement of Free Trade Agreement (“FTA”) negotiations with the European Free Trade Association (“EFTA”), which comprises Switzerland, Norway, Iceland, and Liechtenstein. The signing of the Thailand-EFTA FTA in January 2025 marked Thailand’s first agreement with European countries. The ceremony took during the World Economic Forum in Davos, Switzerland, from 20 to 24 January 2025.
The successful conclusion of the Thailand-EFTA FTA is expected to encourage the European Union and the United Arab Emirates to expedite their own negotiations with Thailand. These agreements are critical for attracting foreign investment, and Thailand’s strategic geographic position positions it as a potential trade and investment hub in Southeast Asia.
The FTA negotiations with EFTA have been concluded successfully, with agreements reached on 15 critical issues, including trade in goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, trade in services, and investment.
This FTA represents a significant milestone in Thailand’s trade history. As the first such agreement with a group of European countries, it is modern, of high standards, and aligns with evolving trade regulations that prioritize sustainable development goals.
The Thailand-EFTA FTA is anticipated to foster long-term trade growth. Thailand’s GDP is expected to increase by 1.28%, with exports rising by 2.83% and imports growing by 2.81%. This agreement is viewed as a key driver for boosting Thailand’s economy, creating a foundation for steady and sustainable growth in the coming years.
Thailand Aims to Expand Free Trade Agreements in 2025_Bangkok Global Law