Thailand pushes EU free trade deal to reduce US reliance

Thailand is prioritizing the finalization of a free trade agreement with the European Union, viewing it as a crucial step to diversify its economic partnerships and lessen dependence on the United States and China.

“

The reason why we’re accelerating the EU FTA so much is because we want to diversify as quickly as possible.

Thai Trade Representative Werapong Prapha explained that the urgency stems from the need to build alternative alliances in an increasingly fragmented global economy. He noted that major economies have "weaponized exports and imports," making adaptability essential for other nations.

The EU FTA is seen as a strategic move to secure access to the large European market, which has over 450 million consumers. The EU is currently Thailand's fourth-largest trading partner. The government aims to reach a conclusion on the agreement by the end of 2026, with negotiators scheduled to meet in Brussels in June for their ninth round of talks.

“

Less reliance on Chinese supply chains and US supply chains.

Negotiators have completed 11 of the 24 chapters, but challenging issues remain, including government procurement, intellectual property, agricultural market access, manufacturing, and energy. Thailand seeks transition periods and support for sectors facing potential competition, particularly concerning pharmaceutical patent protections and agricultural tariffs.

“

The largest exporter has weaponised exports and the largest importer has weaponised imports.

This push also aims to prevent Thailand from falling behind regional competitors like Vietnam and Singapore, which already have trade agreements with the EU. Years of political instability had previously slowed Thailand's trade agenda, but the current government is focused on regaining momentum and re-engaging at the political level.

“

The rest of the world has to be very adaptive.