The European Union has recently announced its intentions to resume negotiations with Thailand on a free trade agreement (FTA), after earlier talks were put on hold following a 2014 military coup in the South East Asian country.
The statement comes after general election in March 2019 that officially ended five years of military rule in Thailand. In addition, Thailand is eager to diversify its economy and reduce its reliance on China, which accounted for 14% of the country’s total foreign direct investment in 2018.
The European Commission estimates that trade flows between the EU and Thailand were valued at about EUR 38 billion in 2018. The EU represents Thailand’s third-largest export market, with Thailand selling EUR 22.9 billion worth of goods and services to it, mainly machinery and transport equipment.
(Sources: South China Morning Post; Bangkok Post)
