The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search

The Future Of Thailand’s Free Trade Agreements

The Future Of Thailand’s Free Trade Agreements

What will a free trade agreement (FTA) mean for Thailand, the UK and Turkey? Find out how and why these nations stand to benefit from finalising a deal.

By In Conjunction

Saturday 20 February 2021, 03:44PM

What Free Trade Deals Will Mean For Thailand

Thailand is often touted as a development success story. Within the span of a generation it’s managed to implement key economic changes that has seen it’s population go from a low-income to upper-income one. For obvious reasons 2020 has affected the country’s people and it’s economy; but it’s not just the past year that’s negatively affected Thailand’s economy. US-China trade tensions haven’t done the country any favours, impacting the country’s slowing economy by way of a lower demand for exports. In addition to this, Thailand also experienced a drought in 2019 which in turn slowed agriculture. But now that it’s getting into the swing of 2021 and there’s a degree of optimism in the form of a new US president and a vaccine roll out plan that started off on Valentines Day, Thailand looks set for a better 2021, primarily by way of its free trade deals with the UK, Turkey and other nations.

Brexit could be a blessing for Thailand

According Thailand’s director-general of the Commerce Ministry’s Trade Policy and Strategy Office (TPSO), Pimchanok Vonkorpon, the Brexit agreement reached between Britain and the European Union will have a windfall effect on Thailand’s economy. The country stands to benefit from the UK’s new tax rate structure as well as additional trade opportunities. In the past 792 items were exempted from tax. Add to that list another 732 items which includes products such as petfood, sauces, auto parts, processed chicken, rubber gloves and others, and you have a series of strong economic contributing factors. According to the TPSO, their main focus is on signing a free trade agreement with the UK. Some analysts might see this as an exercise in how to trade with GBP and other Forex markets.

Thailand & Turkey

The other nation Thailand hopes to sign a free trade deal with is Turkey. In fact both countries are keen on a finalisation. According to Thailand’s ambassador to Turkey, Phantipha Iamsudha Ekahorit, the deal could boost trade between the two nations by 40%. In the past, trade between the two nations was incredibly civil but uneven. For instance, in 2018 Thailand sent roughly $1.4 billion worth of products to Turkey while it in turn sent $278 million back. Both countries are now looking to change all of this with a free trade agreement deal.

In the past Thailand dealt with political instability which has in recent years been stabilised and now the country seeks to establish FTA’s with other global partners as not to fall behind on the goals set out in the Thailand 4.0 initiative 50 – which includes increasing its per capita income and a four percent boost in GDP growth by 2032. As for Turkey, in 2017 it was voted the fastest-growing economy at the G20, outperforming both China and India at the time. In order to continue on such an upward trajectory, Turkey knows it must keep on attracting foreign investment and making international trade easy. The global situation of 2020 saw to it that the deal between both countries remained in limbo with both sides still looking to finalise things as soon as possible. Analysts believe that the rate at which both countries would like things to be finalised might seem overly optimistic while others have cited the two years in which it took Japan and the US to improve trade ties as a book from which a page can be taken.




Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.


Kurt | 21 February 2021 - 11:05:53

Thailand getting into a swing in 2021? Give me a break. Trade with Turkey? Google their inflation rates from 14 -> 21%. Well, why until now there is no FTA between the two? Thailand and Turkey match Government wise ruling. But UK's interests, as a democratic nation, are refreshing and different. Not focusing on Thailand yet.


Have a news tip-off? Click here


Phuket community
July 1 is still on: Phuket Governor

I agree with agogohome. Why waste anyone's time with comments from 'DavidUSA?" He'...(Read More)

No rapid tests for Phuket arrivals from May 15, quarantine instead

Quarantine instead, of course! That brings in more money for local Q-hotels and a flow off for Gove...(Read More)

China warns of ‘serious harm’ to relations as Australia scraps BRI deal

AU needs the Communist Chinese Dictatorship's Belt & Road Idiocy like it needs a hole in the...(Read More)

China’s rocket out of control but risk of damage low, say experts

Shoot it down ! While they're at it, may as well overshoot the runway & drop one on Beijing...(Read More)

No rapid tests for Phuket arrivals from May 15, quarantine instead

Hahahaha- one just can't make this stuff up. Its almost as if they are trying to blackmail centr...(Read More)

July 1 is still on: Phuket Governor

I'm curious why lunatic comments from 'DavidUSA' are being allowed on this platform. Doe...(Read More)

‘Phuket Must Win’ COVID vaccination registration tailor-made for Phuket

IMO all the registration in home province requirements are about suppressing ballots in national ele...(Read More)

Foreigners to get ‘equal access’

Kurt, Societies near the equator, esp. near fish stocks where food is abundant year round have real...(Read More)

PM eyes huge vaccine stockpile

So, er someone [italics] is making it difficult for private health care entities to buy alternative...(Read More)

July 1 is still on: Phuket Governor

That GEMMSST policy explainer certainly gave me a laugh- "Develop Phuket in the fields of ... ...(Read More)