Bangkok: In a significant development for Thailand's trade sector, exports of CBAM (Commonly Trade-Agricultural Products) to the European Union surged by 54.71% in the first 10 months of 2025. Thailand's market share in the EU grew to 0.42%, according to the Trade Policy and Strategy Office (TPSO). The TPSO has urged the private sector to enhance competitiveness and adapt to the global shift towards sustainable trade practices.
According to Thai News Agency, TPSO Director Mr. Nantapong Chiraleartpong stated that the EU's Carbon Border Adjustment Mechanism (CBAM), fully implemented since January 1, 2026, has been positively received in Thailand. In the first 10 months of 2025, EU imports of CBAM products from Thailand increased by 54.71%, raising Thailand's market share in the EU from 0.29% in 2024 to 0.42%. During this period, the EU imported a total of US$107,283.16 million worth of goods under CBAM measures, marking a 4.03% increase compared to the same period of the previous year, with Thailand ranking as the EU's 33rd largest source of imports with a value of US$447.51 million.
Thailand's global exports of goods under the CBAM measure were valued at US$7,151.44 million, representing 2.54% of the total value of all goods exported. The EU emerged as Thailand's 7th largest export market for CBAM products, with an export value of US$363.93 million, accounting for 5.09% of Thailand's CBAM exports, up from 4.05% in 2024.
Significant export products under CBAM include iron, steel, and aluminum. Iron and steel exports to the EU were valued at US$307.46 million, making up 84.48% of Thailand's total CBAM exports to the EU, while aluminum exports were valued at US$56.47 million, accounting for 15.52%. Exports of other product groups, such as cement, fertilizers, electricity, and hydrogen, to the EU remain minimal.
The expansion of Thai exports under CBAM measures in the EU, as well as in high-potential markets like the US and Japan, signifies Thailand's readiness to compete in a transitioning global market. The enforcement of CBAM, along with its potential expansion to other industries, poses both direct and indirect implications for Thailand's manufacturing and export sectors in the medium and long term.
Mr. Nantapong highlighted the Thai government's strategic approaches to address CBAM measures. These include monitoring regulatory developments, raising awareness among the private sector, preparing greenhouse gas emission data, and promoting carbon reduction in the industrial sector. The government is also considering the Climate Change Act to manage national greenhouse gas emissions systematically, supporting Thailand's adaptation to trade-linked climate measures and facilitating a transition to a low-carbon economy.
Recommendations for the private sector include developing a measurement, reporting, and monitoring system for greenhouse gas emissions, investing in low-carbon production technologies, adopting green procurement practices, and developing a carbon accounting system. These measures aim to enhance competitiveness in the global market and prepare for future carbon pricing or greenhouse gas emission trading systems.