State agency seeks more FTAs for Thailand to match ASEAN competitors
State agency Trade Policy and Strategy Office (TPSO) on Friday urged the government to negotiate more free trade agreements (FTAs) to boost economic cooperation as the current number of FTAs is still behind that of competitors in ASEAN.
Currently Thailand has 15 active FTAs with 19 countries, six of them are bilateral agreements between Thailand and Australia, New Zealand, Japan, India, Peru and Chile.
Meanwhile, eight agreements are at a regional level between ASEAN, of which Thailand is a member, and China, Japan, South Korea, Australia, New Zealand, India, Hong Kong and within the Asean Economic Community. The last FTA that Thailand is a part of is the Regional Comprehensive Economic Partnership (RCEP), which brings together 15 countries: 10 from ASEAN, Australia, China, Japan, New Zealand and South Korea.
TPSO director-general Poonpong Naiyanapakorn said that Vietnam, Thailand’s prominent competitor in ASEAN, had secured 16 FTAs with 45 countries, with more partners than Thailand, including the Eurasian Economic Union, Cuba, and United Kingdom. Vietnam is also a member of RCEP and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Thailand is yet to become a part of the CPTPP.
Meanwhile, another ASEAN rival, Indonesia, has 14 active FTAs with 22 countries, including members of the European Free Trade Association (EFTA) and the United Arab Emirates. Indonesia is also a member of RCEP.
Poonpong pointed out that Thailand is at a disadvantage compared to Vietnam and Indonesia due to lack of FTAs with countries in Oceania, South America, European Union, and Eurasia. He urged related agencies to focus on negotiating with countries in these zones to increase the country’s competitiveness in international trade.
Last year, Thailand exported products to FTA partners worth US$167.2 billion, while Vietnam exported $223.89 billion worth of goods to its partners and Indonesia’s exports to partners amounted to $181.66 billion, the TPSO said.
The office added that Thailand was in the process of negotiating seven more FTAs, which are expected to be finalised within this year. Prospective agreement partners include the United Arab Emirates, the EFTA, Canada, Pakistan and Turkey.
