South Korea and Thailand Begin Discussions on Trade Agreement

South Korea's Trade Ministry announced yesterday that it has begun talks with Thailand to set up an Economic Partnership Agreement (EPA). This move aims to boost trade and investment between the two countries. The South Korean team, led by Deputy Minister for FTA Negotiations, Roh Keon-ki, will be in discussions with his Thai equivalent, Chotima Iemsawasdikul, in Bangkok until tomorrow, according to a ministry spokesperson.

EPAs are designed to promote mutually beneficial trade beyond just market access. However, they typically have a narrower scope than traditional free trade agreements. Both Seoul and Bangkok first announced these negotiations back in March.

Despite South Korea already having trade agreements with Thailand through the South Korea-ASEAN FTA and the RCEP, Roh believes there is still room for improving trade and economic cooperation between the two countries. He noted the Regional Comprehensive Economic Partnership (RECP), which is among the world's largest free trade agreements that includes 15 nations and contributes to around 30% of the global GDP.

Roh suggested that a South Korea-Thai EPA, designed particularly for these two nations, will set up policies to lift economic cooperation to new heights. The talks will focus on various sectors such as goods, services, investment, digital, and government procurement. The goal, according to the Korean Deputy Minister, is to boost the competitiveness of South Korean products through increased collaboration with Thailand, leveraging its strong manufacturing sector.

Roh pointed out that Thailand is Southeast Asia's second largest economy and a manufacturing power in the region. An EPA between South Korea and Thailand, he said, would boost the competitiveness of South Korean exports compared to rivals like Japan and China.

File photo for reference only

-- 2024-07-10

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