Phuket: Thailand and the European Union are on the brink of concluding their 10th round of negotiations for a Free Trade Agreement (FTA) in Phuket. The Ministry of Commerce is optimistic that this agreement will spur GDP growth to exceed 3%.
According to Thai News Agency, Deputy Prime Minister and Minister of Commerce, Supajee Suthamphan, expressed confidence that the Thailand-EU FTA will significantly enhance the country's economic landscape. She is actively engaged in preparing for the upcoming round of negotiations, focusing on finalizing all clauses while steering clear of sensitive product groups. Supajee highlighted that the legislative process for the agreement's submission to the Cabinet and Parliament is anticipated to take about a year. She emphasized that the FTA is expected to positively impact the economy by boosting exports by 2.8% annually and attracting major corporate investments targeting European markets.
Supajee detailed the progress made during the second meeting of the working group for the Thailand-EU FTA negotiations, chaired by Prime Minister and Minister of Interior, Anutin Charnvirakul. The meeting, which lasted over two hours, aimed to consolidate information and clarify the negotiation framework. This framework includes a primary position focused on maximizing benefits for Thailand and a secondary position outlining the minimum standards required if the agreement does not meet the primary guidelines.
Currently, negotiations have reached consensus on approximately two-thirds of all articles, with about one-third still pending. The 10th round of negotiations is set to commence on September 28th in Phuket, lasting approximately one week with EU representatives. The primary objective of this round is to finalize the remaining articles, after which the agreement will undergo legal scrubbing and wording refinement. Once finalized and signed, the draft agreement will be submitted to the Cabinet for approval before being considered by Parliament, a process expected to take around one year.
On the matter of sensitive goods, Supajee stated that the negotiations would adhere to principles previously discussed with the EU in Brussels. Both parties have agreed to establish exceptions for sensitive goods, leaving them untouched. Goods that can be opened to the market for mutual benefit will be prioritized.
Supajee also noted that opening the EU market would enhance Thailand's competitiveness, diminish reliance on existing markets, and foster a more balanced trade environment. The Thailand-EU FTA is anticipated to expand trade between the two regions and attract foreign direct investment from countries like the United States, China, and Japan, as companies seek to establish production bases in Thailand and capitalize on tariff advantages when exporting to the EU.
A successful trade agreement with the EU is projected to significantly benefit Thailand's economy. A study by the Future Development Studies Institute suggests that such an agreement could boost Thailand's GDP by 1.28%, elevating it to over 3% per year. Additionally, exports are expected to rise by 2.8%, providing a substantial economic lift.