Analyzing Thailand's FTA with its trade rivals Vietnam-Indonesia, Thailand lost decisively, both in the number of FTA partner countries and in the value of exports. As a result, Vietnam-Indonesia has more trade advantages than Thailand. We urge acceleration of negotiations ahead of a free trade agreement.
Analyzing Thailand's FTA with its trade rivals Vietnam-Indonesia, Thailand lost decisively, both in the number of FTA partner countries and in the value of exports. As a result, Vietnam-Indonesia has more trade advantages than Thailand. We urge acceleration of negotiations ahead of a free trade agreement.
Negotiating a Free Trade Agreement (FTA) or Free Trade Agreement It is an important policy of the Thai government and the Ministry of Commerce, and is considered one of the important policies of international trade. To increase business opportunities – reduce trade barriers, including tariff barriers. And non-tax, with each party benefiting from the other and creating competitive capabilities for entrepreneurs
Of information fromOffice of Trade Policy and Strategy (Office of Trade Policy and Strategy) Whoever prepared it mentioned that Thailand currently has a total of 15 free trade agreements in place, covering 19 countries. It is divided into 6 bilateral issues, including Australia, New Zealand, Japan, India, Peru, and Chile, and 8 regional issues, including the ASEAN Economic Community (AEC), ASEAN-China, and ASEAN-Japan. ASEAN-South Korea, ASEAN-Australia, New Zealand, ASEAN-India ASEAN-Hong Kong and the Regional Comprehensive Economic Partnership (RCEP)
byThe most recent edition was on February 3, 2024, when the Thai government signed the 15th Free Trade Agreement with Sri Lanka. SLTFTA is the first issuance under Mr Sitha Thaweesin's government.
Meanwhile, neighboring competing country, Vietnam, has 16 free trade agreements covering 45 countries. There are 7 bilateral agreements: Japan, Chile, South Korea, the Eurasian Economic Union, Cuba, the European Union and the United Kingdom. and 9 regional issues, including the ASEAN Economic Community (AEC), ASEAN-China, ASEAN-Japan, ASEAN-South Korea, ASEAN-Australia, New Zealand, ASEAN-India ASEAN-Hong Kong, the Regional Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership. (CPTPP).
Indonesia has a free trade agreement. 14 cases covering 22 countries, divided into 6 bilateral cases It consists of South Korea, Japan, Chile, Australia, the European Free Trade Association (EFTA), and the United Arab Emirates. and 8 regional issues, including the ASEAN Economic Community (AEC), ASEAN-China, ASEAN-Japan, ASEAN-South Korea, ASEAN-Australia-New Zealand, ASEAN-India ASEAN-Hong Kong and the Regional Economic Partnership (RCEP) Agreement.
When comparing the model in setting up FTAs, Thailand has fewer FTA partner countries than Vietnam and Indonesia.Covers the Asian region Docinia and South America Vietnam has free trade agreements covering Asia, Europe, South America, the United Kingdom, Canada, Mexico, Oceania, North America, the European Union (27 countries), the Eurasian Economic Union and Cuba.
Indonesia has a free trade agreement covering Asia, Oceania, Europe, South America and the European Free Trade Association. And the United Arab Emirates, whichEFTA and UAE It is a country where Thailand has not yet signed a free trade agreement, which makes Vietnam and Indonesia have a greater trade barrier than Thailand.
In 2023, Thailand exported goods to FTA partners worth $167.2 billion, Vietnam exported goods to FTA partners worth $223.891 million, and Indonesia exported goods to FTA partners worth $181.666 million. Vietnam and Indonesia, with Thailand yet to sign a $39.975 million free trade agreement.
“Trade must step up and move forward with FTA negotiations. With partner countries on an ongoing basis to increase trade competitiveness At the same time, we must accelerate the enhancement of the potential of Thai entrepreneurs so that they are ready to adapt within the framework of global rules in a timely manner,” said Mr Boonphong Nayanavakorn, Director of NBTC.
Currently, there are 7 free trade agreements that Thailand is negotiating. The agreements, which are expected to be completed in 2024, include the Thailand-United Arab Emirates Agreement (CEPA), and the Thailand-European Free Trade Association Agreement (TH-EFTA FTA), which consists of 4 member states: Switzerland, Norway, Iceland and Liechtenstein from The EFTA is a group of countries in Europe that Thailand did not have a free trade agreement with before. The FTAs that are expected to be successfully negotiated in 2025 include the Thailand-EU FTA (TH-EU FTA) and the ASEAN-Canada Free Trade Agreement (ACAFTA), while the FTAs that are most likely to be negotiated Agreements after 2025, including the Thailand-Pakistan Free Trade Agreement (PATHFTA), the Thailand-Turkey Free Trade Agreement (TRTHFTA), etc.
also There are plans to open further negotiations on a new free trade agreement. Such as the Free Trade Agreement between Thailand and South Korea, Thailand and Bhutan, Thailand and Israel, and Thailand and the United Kingdom. The member states of Thailand and the Gulf Cooperation Council countries, the Thailand-South Africa Customs Union (SACU), the Thailand-Pacific Alliance (PA), the Thailand-South America Common Market (Mercosur), and the Thailand-East Africa Community (EAC).
From the preliminary information,This reinforces the need for the Thai government to move forward with FTA negotiations. To cover more trading partners to create a trade advantage for the country.