FTA with European Free Trade Association to be signed at WEF meet

Commerce Minister Pichai Naripthaphan announced that he would attend the annual World Economic Forum (WEF) to be held from January 20-24 in Davos, Switzerland. During the event, he will also participate in the signing of a free-trade agreement (FTA) between Thailand and the European Free Trade Association (EFTA), with Prime Minister Paetongtarn Shinawatra serving as a witness.

On January 13, the Cabinet approved the results of the FTA negotiations between Thailand and EFTA, comprising four member countries – Switzerland, Norway, Iceland and Liechtenstein – following intensive discussions over the past three months.

The signing ceremony will take place on January 23 during the WEF meeting attended by the prime minister and the minister of commerce.

This signing marks a significant achievement in the government’s key policy to expedite FTA negotiations with trade partners. The agreement aims to expand opportunities for exporting Thai goods and services, provide competitive advantages, facilitate business operations for entrepreneurs, and attract foreign investment in industries where Thailand has potential, as well as in emerging industries.

This FTA represents a new chapter in Thailand’s trade history, as it is the first between Thailand and a European bloc. The agreement is modern, high-standard, and aligns with the evolution of new trade rules emphasising sustainable development goals. It also paves the way for negotiations on future FTAs with other major partners, such as the European Union.

Additionally, in 2025, the Ministry of Commerce plans to advance FTA negotiations with other trade partners, including Bhutan and South Korea.

From January to November 2024, the total trade value between Thailand and EFTA reached US$11,467.03 million, accounting for 2.06% of Thailand's global trade. This represented growth of 24.94% compared with the same period in the previous year. 

Thailand exported goods worth $4,121.84 million to EFTA and imported goods worth $7,345.20 million from EFTA.

Key exports from Thailand to EFTA included: jewellery and ornaments, watches and components, iron and iron products, canned and processed seafood, travel accessories, machinery and parts, electric control panels, cosmetics, air-conditioners and parts, plastic products, and rice.

Major imports from EFTA to Thailand included: jewellery and ornaments, watches and components, meat, pharmaceutical and medical products, pesticide, machinery and parts, electrical machinery and parts, scientific and medical instruments, fresh, chilled, frozen and processed seafood, and chemicals.

Phunphong Naiyanapakorn, director of the Trade Policy and Strategy Office (TPSO), said the agreement with EFTA will bring Thailand’s total number of FTAs to 16, covering 23 countries/economic zones. 

"Negotiating FTAs will help Thailand forge new trade partnerships, reduce trade barriers, enhance confidence, and attract foreign trade and investment," Phunphong said. “It will raise standards, provide competitive advantages, and boost the export capabilities of Thai businesses." 

Additionally, FTAs will strengthen Thailand's role in the global supply chain, support its position as a key production hub in the region, and foster stronger relationships and mutually beneficial cooperation, he said.