The European Union (EU) and Thailand have re-launched long-stalled talks on forging a free trade agreement, more than four years after the Southeast Asian nation suspended negotiations amid concerns over labor rights abuses. Both sides have expressed optimism that the talks will bring mutual benefits and boost trade and investment between the two regions. This move comes as the EU seeks to deepen its engagement with Southeast Asia amid growing global uncertainty and geopolitical tensions. In this article, we will explore the implications of this new trade deal and its potential impact on the economies of both the EU and Thailand.
The European Union (EU) announced on Wednesday that long-awaited discussions regarding a free trade agreement with Thailand would resume. The EU has been actively seeking to boost access to green technology in an effort to reduce carbon emissions and meet climate targets by 2030. The talks with Thailand, the second-largest economy in Southeast Asia, had started in 2013 but stalled in 2014, following a military coup.
The EU has been attempting to establish better trade relationships with fast-growing regions, particularly in the area of clean technology. Vietnam and Singapore already have trade agreements with the EU, and in September 2022, the EU set an ambitious goal to agree on a free trade deal with Indonesia within two years. The EU wants to focus on areas where they are “under-represented,” including clean and renewable energies, electric vehicles, and critical goods like microchips.
The European Commission, the EU’s executive arm, plans to announce two landmark proposals for legislation focused on green tech and critical raw materials this week. The commission aims to hold the first round of discussions with Thailand in the coming months. The EU is looking to enhance its trade relationships in the Asian region to provide more opportunities for economic growth.
The EU member states’ representation, the European Council, recommends restarting talks with Thailand after the country’s “advances on the democratisation process” in 2017 and 2019. As of 2022, trade in goods between the EU and Thailand was worth over 42 billion euros ($44.3 billion).
Despite some member states’ frustration over the slow pace of trade deals, negotiations with many countries continue, including Australia, Chile, and India. The EU is committed to pursuing trade agreements that benefit its member states while promoting sustainable progress and maintaining global norms and standards.
In conclusion, the EU’s resumption of trade discussions with Thailand is a significant signal of its commitment to equitable economic growth and sustainable development. By pursuing trade agreements that align with its values and goals, the EU aims to create a more prosperous and stable world for all.
