Thailand is ramping up efforts to expand its network of free trade agreements (FTAs), targeting key global markets to bolster the nation’s economic resilience and international competitiveness. The initiatives are part of a broader strategy to achieve sustainable economic growth.

Commerce Minister Pichai Naripthaphan recently announced plans to pursue additional FTAs in 2025, targeting a 3% economic growth rate. His ministry unveiled 10 key policies aimed at boosting trade and investment, with FTAs playing a pivotal role. The ministry emphasized that the government is focusing on enhancing trade partnerships, attracting foreign investments and ensuring economic stability while also addressing food security.

Expanding global partnerships

Commerce Minister Pichai Naripthaphan announcing key trade policies. Source: National Broadcasting Services of Thailand  

Thailand is actively negotiating FTAs with several countries and economic blocs, such as the European Union, South Korea, and the United Arab Emirates (UAE). Notable developments have included successful negotiations with the European Free Trade Association (EFTA), which comprises Switzerland, Norway, Iceland, and Liechtenstein, and ongoing FTA negotiations with the EU, Sri Lanka, and Bhutan, all of which are targeted for completion within 2025.

“This will be Thailand’s first FTA with Europe, and other FTAs will follow to boost competitiveness and attract foreign investment,” Minister Pichai said, referring to the EFTA agreement.

In addition to ongoing negotiations, Prime Minister Paetongtarn Shinawatra has directed members of ‘Team Thailand’ — led by the ambassador, and comprising commercial attachés, and representatives of the Board of Investment — to use a people-centric approach to strengthening diplomatic and economic ties. These efforts align with the government’s ambition to increase Thailand’s global trade footprint and ensure that Thai businesses remain competitive in a rapidly changing economic landscape.

Currently, Thailand has 15 FTAs in force, covering 18 countries. The addition of an EU-Thai FTA alone could increase Thailand’s annual economic growth by 1.2%, according to the Institute of Future Studies for Development.

Prime Minister Paetongtarn Shinawatra speaking to Thai ambassadors and consuls-general in the Americas, in Los Angeles on November 11th, 2024. Source:Thai Government Website

Role of embassies and commercial attachés

Thai embassies and commercial attachés have played a pivotal role in promoting FTAs. A key milestone was recently achieved with the parliamentary approval and entry into effect of the Thailand-EU Comprehensive Partnership and Cooperation Agreement, which provides a framework for deeper political and economic collaboration. The Ministry of Foreign Affairs (MFA) has underscored the significance of this agreement as a step toward finalizing the Thailand-EU FTA, which could enhance trade, investment, and mutual growth.

In Bhutan, the MFA facilitated the fourth Bhutan-Thailand Political Consultations, fostering stronger bilateral ties and paving the way for trade discussions. The meeting highlighted mutual interest in bolstering economic relations and showcased Thailand’s commitment to enhancing its partnerships in South Asia.

Eksiri Pintaruchi, Permanent Secretary for Foreign Affairs of Thailand (fourth from left) and Dasho Tshering Tobgay, Prime Minister of Bhutan (center) accompanied by their respective delegations during the fourth Thailand-Bhutan Bilateral Consultations Meeting. Source: Ministry of Foreign Affairs of Thailand  

Additionally, the Royal Thai Embassy in Colombo has been instrumental in fostering business, economic, and development collaborations between Thailand and Sri Lanka. 

In December 2024, the embassy organized a forum discussing “Recent Development and Opportunities in Business Interactions between Thailand and Sri Lanka,” highlighting the benefits of the Thailand-Sri Lanka FTA. Earlier in the year, the MFA played a major role in enhancing trade relations with Latin America through the “Flavours of Opportunities: Nourishing Trade and Investment between Thailand and Latin America” initiative.

Looking ahead, the Thai government, particularly the Ministry of Commerce has set ambitious targets for 2025, aiming to upgrade existing FTAs in addition to finalizing the three new agreements. The government is also leveraging its role as a BRICS partner country to explore trade opportunities with emerging markets such as Brazil, Russia, India, China, and South Africa. These efforts are expected to diversify Thailand’s trade portfolio and reduce reliance on traditional markets.

Vice Minister for Foreign Affairs Russ Jalichandra (bottom row, center) in a group photo session at the “Flavours of Opportunities” seminar. Source: Ministry of Foreign Affairs of Thailand Website

Shaping Thailand’s trade trajectory

Thailand’s renewed push for FTAs reflects the government’s determination to strengthen its economic position in the face of global uncertainties. By targeting key markets and leveraging its strategic partnerships, the kingdom aims to unlock new growth opportunities and enhance its long-term economic resilience.

Source: