Thailand and India are locked in a parallel push to secure Free Trade Agreements (FTAs) with the European Union (EU) by the end of this year, driven by a shared desire to unlock new markets and mitigate the risks of escalating global trade tensions, particularly those stemming from potential future tariffs imposed by a returning US administration.
FTAs, designed to lower trade barriers and streamline commerce, are a key focus for Thailand, which currently has 16 such deals with 23 countries. The most recent addition was an agreement with Bhutan, signed earlier this month.
However, several other FTA negotiations are being fast-tracked, most notably the one with the 29-nation EU. Thailand’s ambitious target is to conclude these talks by Christmas Day, aiming to boost its access to European markets and hedge against the fallout of a potential resurgence of aggressive US trade policies.
This urgency follows the previous US administration’s move to implement reciprocal tariffs on imports to address trade imbalances, a policy that could see Thai goods facing a hefty 36% levy.
India shares Thailand’s determination to finalise an FTA with the EU within the same timeframe. According to reports from the Thai Department of International Trade Promotion, negotiations between India and the EU, which have spanned nearly two decades, are now believed to be nearing a successful conclusion.