Thailand Urged to Finalize More FTAs for Greater Trade Growth

Photo courtesy of Bangkok Post

Thailand's government should expedite free trade agreement talks with various nations to enhance competitiveness and decrease reliance on the United States, according to academics. Assoc Prof Juthathip Jongwanich from Thammasat University suggests pursuing agreements beyond ongoing negotiations with the EU, Canada, and South Korea.

Current talks include potential deals with the UAE, a nation experiencing robust economic growth and focusing on food technology, offering Thailand significant trade opportunities. There is also unexploited potential for increased trade with Canada, particularly in rice, seafood, and processed foods. Assoc Prof Juthathip highlighted the need for carefully planned bilateral agreements to avoid overlap with broader deals like the upcoming Asean-Canada FTA.

She pointed out that if the Asean-Canada FTA offers more benefits, a separate Thai-Canada FTA might become unnecessary, citing the limited use of the Japan-Thailand Economic Partnership Agreement compared to the Asean-Japan Economic Partnership. She also supports expanding FTAs with Latin American countries such as Peru and Chile. Chile is interested in joining the Regional Comprehensive Economic Partnership, while Peru is involved in an Asean-Peru development partnership.

Exploring trade agreements with these countries requires distinct strategies to ensure deals are beneficial and not redundant, according to Assoc Prof Juthathip. Additionally, she discussed Thailand’s Khon La Khrueng Plus co-payment scheme, noting its short-term economic boost capabilities. With Thailand’s Q3 GDP growth at just 1.2%, she indicated tourism and public consumption had more influence than domestic consumption.

She emphasized the importance of reviving Chinese tourism and addressing slow private sector investment tied to the sluggish industrial sector recovery, reported Bangkok Post.

Key Takeaways

• Thailand should diversify FTAs to reduce US dependency.
• Strategic considerations are needed to avoid redundant agreements.
• Reviving tourism and increasing investments are crucial for growth.

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  Adapted by ASEAN Now from Bangkok Post 2025-12-02