Targeting a Historic FTA with South Korea by Year-End
Thailand’s Commerce Minister, Suphajee Suthumpun, has expressed strong optimism regarding the final stages of negotiations for a free trade agreement (FTA) with South Korea, aiming to conclude the talks by the end of this current year.
Achieving an FTA with South Korea would represent a significant milestone for Ms. Suphumpun, especially given her anticipated short tenure in the commerce portfolio ahead of the general election scheduled for next year.
The trade pact negotiations between Thai and South Korean officials have been ongoing since 2004, and are now finally entering their critical, closing phases.
Ms. Suphumpun credited the dedicated officials of the Department of Trade Negotiations for their unwavering efforts toward finalizing this long-awaited agreement with the East Asian nation.
To emphasize the commitment from both sides, a joint declaration is planned to be issued on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) meetings.
These APEC meetings will be hosted by South Korea from October 26 to November 1 in Gyeongju city near Busan.
The minister will participate in the trade ministers’ meeting, while Prime Minister Anutin Charnvirakul will join other leaders at the summit, creating a high-level platform to underline the mutual determination to conclude the bilateral trade agreement swiftly.
Leveraging APEC for Trade Advancement
The upcoming APEC meetings in South Korea offer a key diplomatic venue for Thailand to advance its trade agenda, particularly concerning the bilateral FTA.
The planned joint declaration is intended to be a strong signal to both the domestic and international business communities about the imminent finalization of the trade deal, though the minister did not specify whether the announcement would be made by the trade ministers or the respective leaders of the two nations.
This trade pact is important for Thailand as two-way trade between the two countries reached a substantial US$14.7 billion in 2023, with the balance of trade currently in favor of South Korea.
The successful conclusion of the negotiations for the FTA will not mark the final step, as the resulting agreement will still require formal parliamentary approval in Thailand before it can be fully implemented and take effect, a standard procedure for international treaties.
Beyond the South Korea deal, Ms. Suphumpun also shared her hopes for accelerating progress in the long-discussed FTA talks with the European Union (EU).
She plans to strategically utilize the recently signed European Free Trade Association (EFTA) accord as a crucial stepping stone, believing it will serve as a catalyst for Thailand and EU members to speed up their own negotiations toward a full trade pact.
Strategic Pathways for European Trade Pacts
Thailand’s commitment to multilateral trade is demonstrated by its proactive engagement with the European market, which is now entering a new phase following the signing of the EFTA accord in January.
This EFTA agreement, expected to become effective within a year, involves European nations that are not part of the EU—specifically Iceland, Liechtenstein, Norway, and Switzerland.
These EFTA members maintain various forms of close cooperation with the EU, including their inclusion in the Schengen area’s free movement arrangement, which can be strategically leveraged by Thailand.
The Commerce Minister pointed out that the current global trade dynamics present a unique opportunity for Thailand to seal a more extensive trade pact with the EU bloc.
She noted that the European Union is actively seeking new markets and reliable trading partners due to mounting external pressures, primarily stemming from reciprocal tariffs imposed by the US and significant geopolitical shifts.
Thailand is well-positioned to capitalize on these emerging dynamics and use its strong FTA momentum with other regions to successfully conclude a comprehensive trade agreement with the powerful European economic bloc, thereby diversifying its export markets and securing long-term economic benefits.
