Thailand accelerates FTA talks with EFTA, EU and South Korea to cut reliance on US exports

Thailand is moving to diversify export markets and reduce its heavy reliance on the United States — its largest trading partner — after Washington imposed higher tariffs on Thai products. The government has prioritised three major free trade agreements (FTAs) to strengthen competitiveness and expand long-term economic opportunities.

From January to September 2025, Thailand’s exports to the United States totalled US$52.109 billion, rising 28.6% year on year and accounting for 20.5% of all Thai exports. China ranked as Thailand’s second-largest market, with exports worth US$30.667 billion during the same period, up 16.1%, or 12.1% of total exports.

However, the US has recently introduced retaliatory tariff measures, increasing import duties on Thai products by 19%, prompting the government to intensify efforts to expand into new and high-potential markets.

Commerce Ministry pushes ‘Balance–Inclusive–Diversify’ strategy

Commerce Minister Suphajee Suthumpun said the ministry has adopted a proactive strategy under the framework of Balance–Inclusive–Diversify, focusing on:

• maintaining traditional export markets,
• developing new markets, and
• positioning Thailand within new global supply chains.

She stressed that Thailand must maintain balanced relations with global powers, strengthen ASEAN and Asia–Pacific economic links, and fully leverage the country’s strategic geographic advantages.

A government source said the plan to expand Thailand’s export markets was included in the government’s policy statement to Parliament and forms part of the Commerce Ministry’s Quick Big Win agenda approved by the Economic Cabinet on November 10, 2025.

Three key FTAs targeted for completion within one year

The government is prioritising three trade agreements, aiming for them to enter into force within one year to boost GDP and expand long-term trade and investment opportunities:

Thailand–EFTA FTA

• Expected GDP boost: 0.179%
• Target: Submit to Parliament for approval in January 2026

Thailand–EU FTA

• Expected GDP boost: 1.28%
• Current stage: Outstanding issues to be finalised before submission

Thailand–South Korea CEPA

• Expected GDP boost: 0.32–0.44%
• Target: Resolve remaining negotiation issues by December 2025

The Commerce Ministry aims to generate an additional 8.75 billion baht in trade value within four months, and 139.132 billion baht within one year through these FTAs.

‘Special Task Force’ mission to break into new high-potential markets

Under the Special Task Force (STF) initiative of the Department of International Trade Promotion (DITP), Thailand is pushing aggressively into new strategic markets under the Quick Big Win policy. The focus sectors and target markets include:

New target markets: 

1. Western China (Chengdu, Chongqing, Xishuangbanna)

• Food, beverages, pet food

2. ASEAN (Vietnam)

• Mother and baby products

3. India (Mumbai)

• Environmental goods and services
• Expected added value: 190 million baht

The ministry also plans high-level business matchmaking events, inviting major US importers — including new entrants — to negotiate directly with top Thai manufacturers to boost orders and expand distribution channels.

Market expansion plan for 2026

In 2026, Thailand will expand into a wide range of new destinations across:

Europe & Eurasia

Andorra, Norway, Russia

Latin America & the Caribbean

Mexico, Puerto Rico, Dominican Republic, Brazil

Middle East & Africa

Tunisia, Ethiopia, Turkey, Qatar, UAE, Iran, Kenya, Tanzania, Uganda, Saudi Arabia, Tel Aviv

South Asia

India (secondary cities), Pakistan, Bangladesh, Nepal, Sri Lanka

Each region will be approached with targeted products:

• Africa: heavy industrial goods, machinery
• Europe: food products and fashion apparel
• Middle East & South Asia: diversified goods under the STF programme

The STF trade mission includes products such as food, beverages, pet food, fashion, construction materials and furniture. Exports to these new markets are expected to reach no less than US$95 billion, with growth of at least 9%, compared with 4.8% in 2024.

NESDC backs government’s push for new markets

NESDC secretary-general Onfa Vechacheewa said the government’s economic management through the remainder of 2025 and into 2026 must prioritise market diversification to reduce dependence on US-bound exports — particularly in sectors vulnerable to losing market share due to tariffs.

She added that Thailand must accelerate FTA negotiations, especially with the EU and South Korea, while preparing to engage new potential trading partners.

The government must also tackle production costs, address US trade barriers, and advance talks with Washington to ensure long-term economic cooperation. Improvements in SME competitiveness, production efficiency, domestic sourcing of raw materials, and greater understanding of partner-country regulations must be prioritised.

Risk management for exchange-rate volatility is also essential, she said.

Despite diversification efforts, she emphasised that trade negotiations with the United States must continue, as the US remains a crucial and expanding market for Thai exports.