UK–Thailand Trade Deal Urged to Match EU Agreement

Picture courtesy of Khaosod- Pinyapa Somphong from BCCT

The British Chamber of Commerce Thailand (BCCT) is urging the Thai government to speed up negotiations on a free trade agreement (FTA) with the United Kingdom, warning that further delays could disadvantage exporters from both countries once the Thailand–EU FTA takes effect in 2026. BCCT President Pinyapa Somphong said the chamber wants the proposed UK deal to deliver tariff and regulatory benefits equal to those secured by the European Union, ensuring fair competition for British and Thai businesses alike.

Speaking to Prachachat Business, Pinyapa emphasised that trade between Thailand and the UK has grown significantly in recent years and that the new Thai administration should prioritise the swift resumption and advancement of FTA discussions. “The value of trade between Thailand and the UK has grown substantially. We hope the new Thai government will move quickly to resume and advance these negotiations,” she said.

Talks between the two nations began under the Joint Economic and Trade Committee (JETCO) framework and led to the signing of an Enhanced Trade Partnership (ETP) in 2024. However, discussions have since slowed, partly due to global tariff realignments triggered by changes in U.S. trade policy earlier in 2025. The UK, meanwhile, is pursuing multiple trade agreements, including an FTA with Indonesia expected in early 2026 and ongoing negotiations with India. Analysts note that Thailand’s pending EU deal could shift trade flows towards Europe if UK tariffs remain higher.

Founded in 1946, the BCCT is Thailand’s oldest foreign chamber of commerce, representing more than 560 member companies in sectors such as education, energy, retail and finance. The organisation promotes bilateral investment and hosts regular events to facilitate trade and policy dialogue. Pinyapa said both economies are facing headwinds in 2025, with Thailand focused on boosting domestic consumption and tourism, while the UK works to revive its domestic business environment. She added that investor confidence is expected to strengthen in 2026 as policy directions become clearer under the new Thai government.

The BCCT also called for urgent regulatory reform to improve Thailand’s investment climate. Pinyapa cited the Foreign Business Act’s Annex 3 as a major obstacle to foreign investment, arguing that “redundant laws” should be reduced to make it easier for international companies to operate in Thailand. She noted that Vietnam has progressed more rapidly in streamlining investment procedures. The chamber urged the government to simplify approvals and reduce overlap between the Board of Investment and other agencies to accelerate decision-making and lower costs.

“Cutting red tape will attract more foreign capital and benefit Thai consumers through greater competition, innovation, and quality,” Pinyapa said.

Key Takeaways

• The BCCT is calling for the UK–Thailand FTA to match EU trade terms to prevent competitive imbalance.

• Talks have stalled since the 2024 Enhanced Trade Partnership amid global tariff shifts.

• The chamber urges Thailand to simplify business regulations to attract more foreign investors.

  Adapted  by  Asean  Now from Khaosod 2025-11-09