FTA with EU likely to increase Thailand’s GDP by 1.7 percent

Bangkok (VNA) - A free trade agreement (FTA) with the European Union (EU) would boost Thailand’s exports and gross domestic product (GDP), according to a study conducted by the Institute of Future Studies for Development (IFD).

According to the study, which was announced on October 22, the EU-Thailand FTA is estimated to increase the Southeast Asian country’s GDP by 1.7 percent or 250 billion baht a year, and exports by 10-14 percent a year.

IFD Director Taweechai Charoensedtasin said Thai products expected to reap benefits from the pact include automobiles and parts, garments, electronics, chemicals, rubber, plastic, food and processed food products, machinery and parts, construction and leather products.

Meanwhile, Thailand’s products likely to be affected by the FTA would be dairy, sugar, tobacco and alcoholic drinks, he said.

The Ministry of Commerce through the Trade Negotiations Department has been speeding up studies on the opportunities and challenges in reviving long-delayed trade talks between the two sides after the EU stated that the bloc aims to resume FTA negotiations with Thailand.

Director-General of the Trade Negotiations Department Auramon Supthaweethum said the department has scheduled public hearings nationwide. After public hearings have been held in all regions, the Ministry of Commerce will propose proceeding with talks on a trade pact in December to the cabinet.

Thailand needs to speed up FTA talks with the EU as the bloc has already signed FTAs with Singapore and Vietnam, she said.

According to the European Commission (EC), EU-Thailand trade reached 38 billion EUR (42 billion USD) in 2018, of which 22.9 billion EUR was from Thai exports, making the EU the third largest export market of Thailand./.