Belgium, (Brussels Morning Newspaper) The European Commission and Thailand have announced plans to relaunch talks on a free trade agreement focused on sustainability.
The EC pointed out in a statement on Wednesday that the Indo-Pacific region is important for the EU trade agenda and added that the bloc wants to strengthen cooperation with Thailand and other countries in the region.
The announced free trade agreement is aimed at boosting investments and trade “by addressing a wide range of issues such as market access for goods, services, investment, and government procurement, swift and effective sanitary and phytosanitary procedures, protection of intellectual property rights including geographical indications and removal of obstacles to digital trade and trade in energy and raw materials,” the Commission noted.
The trade deal will also include the protection of the environment and workers’ rights.
The EC stressed that trade between the EU and Thailand is well established and has potential for growth, noting that trade in goods in 2022 exceeded 42 billion euros.
The body pointed out that the bloc is Thailand’s fourth largest trade partner, while Thailand is the EU’s fourth largest trade partner in the ASEAN region and 25th overall.
The EU is Thailand’s second-largest foreign direct investment (FDI) destination and the third-largest foreign investor in Thailand. The EU accounts for almost 14% of Thailand’s FDI.
The Commission noted that “the EU is underrepresented in terms of key investors in innovative sectors, including clean and renewable energies, electric vehicles, and critical goods like microchips.”
Vladis Dombrovskis, European Commissioner for Trade, welcomed “the relaunch of our negotiations for a trade deal with Thailand, the second-largest economy in the ASEAN region.”
Mutually beneficial deal
He stressed that a “modern and dynamic” trade deal would benefit both sides and “boost the scale and sustainability of our trade, drive innovation, and strengthen our supply chains.”
He concluded that pursuing new trade agreements is important for the EC’s green industrial plan and will help to increase the bloc’s competitiveness.
The EC noted that the first round of negotiations is to be held in the coming months and concluded that “the EU and Thailand are committed to advancing swiftly in the FTA talks.”