Thai Minister Champions Free Trade to Help Firms Weather Global Headwinds

 

Thailand's Commerce Minister, Pichai Naripthaphan, has hosted a seminar titled "FTA: Expand Business, Conquer Exports" to equip small and medium-sized enterprises (SMEs) in the northeastern provinces of Nakhon Phanom, Sakon Nakhon, Mukdahan, and Nong Khai with the knowledge to leverage Free Trade Agreement (FTA) benefits for their export endeavours.

 

The initiative comes as global trade faces turbulence following the United States' recent announcement of fresh tariffs.

 

The seminar, held on Monday at the Mekong Heritage Hotel in Nakhon Phanom, was organised by the Department of Foreign Trade, under the Ministry of Commerce's scheme to boost SME competitiveness in the international marketplace, specifically targeting entrepreneurs in the northeastern region of Thailand.

 

More than 150 SME representatives from the four aforementioned provinces attended the event, aiming to bolster their understanding of the commercial advantages offered by FTAs.

 

These agreements are seen as vital in driving Thailand's export sector and providing businesses with a crucial tool to navigate the import duties being imposed by the US on goods from around the world.

 

Pichai addressed observations made by the opposition and academics suggesting that Thailand's three consecutive months of export growth were primarily due to businesses accelerating shipments to avoid tariffs imposed by the previous US administration.

 

He clarified that this was a misunderstanding, acknowledging that those tariffs might have played a minor role but were not the principal cause of the sustained growth.
 

 

He pointed out that Thailand's overall export trajectory had been consistently positive prior to those tariff announcements, with growth figures of 14.6% in October, 8.2% in November, and 8.7% in December.

 

In the first quarter of 2025 (January to March), exports expanded by a robust 15.2%, reaching a total value of $81.5323 billion, with steady monthly increases of 13.6% in January, 14% in February, and 17.8% in March. 

 

Thailand's six-month average export growth of 12.9% marks a decade-high, clearly indicating a significant recovery in the Thai economy.

 

Pichai also highlighted the successful negotiation of FTAs, particularly the swift agreement with the European Free Trade Association (EFTA) – comprising Switzerland, Norway, Iceland, and Liechtenstein – which was concluded in just three months.

 

He emphasised the critical role of FTAs in ensuring the continued growth of Thailand's export sector.

 

The EFTA success has already yielded positive results, with Thai exports to Switzerland showing impressive growth: 852% in January, 235% in February, and 497% in March.

 

Thailand is now actively pursuing an FTA with the European Union (EU), with hopes of finalising it within the current year. If successful, Thailand will have trade agreements with over 50 countries globally.

 

 

 

Drawing a comparison with Vietnam, which has overtaken Thailand's export performance in recent years due to its FTAs with 57 nations, Pichai underscored the significant impact of such agreements on economic expansion.

 

Consequently, Thailand is prioritising FTA negotiations with South Korea, the UAE, and ASEAN-Canada to broaden its trade horizons.

 

Pichai encouraged Thai exporters to increase their use of locally sourced materials.

 

Furthermore, the Ministry of Commerce is developing a new mobile application to consolidate trade and service information, providing businesses with easier and quicker access to relevant benefits.

 

The "FTA: Expand Business, Conquer Exports" seminar was the sixth in a series of ten planned across the country.

 

Pichai stressed his desire for businesses to apply the knowledge gained to expand their export markets, expressing confidence that Thailand's economic foundations, driven by exports, investment, and tourism, would lead to strong growth.

 

He added that the government is also actively addressing household debt to stimulate domestic consumption.

 

For those interested in further seminar details, information is available on the Department of Foreign Trade website at www.dft.go.th, or by contacting the Trade Benefits Division on 02 547 4855, or the hotline on 1385.