EU–Thailand Free Trade Agreement Gains Momentum: A Stronger Economic Partnership Ahead
Negotiations between the European Union (EU) and Thailand on an ambitious, modern, and balanced free trade agreement (FTA) began in March 2013, with sustainability at its core, however, they were suspended the following year due to Thailand’s military takeover. Guided by the 2019 Council Conclusions, the (EU) took steps towards broadening its engagement with Thailand, including towards the resumption of negotiations on a comprehensive FTA. This renewed momentum culminated in March 2023, when the EU and Thailand jointly announced the relaunch of FTA negotiations. Thailand’s Ministry of Industry has signaled its intent to conclude the FTA negotiations with the EU by mid‑2026.
Trade between the two partners is already substantial. In 2024, the EU was Thailand’s fourth largest trading partner, accounting for 7.1% of Thailand’s total trade in goods. Thailand was the EU’s 28th largest trading partner, representing 0.8% of the EU’s global goods trade. Bilateral trade in goods reached €42 billion that year. In 2024, the EU imported goods worth €27.4 billion from Thailand, with machinery and appliances as the key imports. EU exports to Thailand totaled €14.6 billion, consisting mainly of machinery and appliances, chemicals, base metals, and transport equipment.
Investment links are equally robust. The EU is Thailand’s second largest foreign investor after Japan, with outward FDI stocks of €24.9 billion in 2023. Thai investment in the EU amounted to €5.6 billion, underscoring a growing two‑way investment relationship.
The aim of the FTA will be to boost trade and investment by addressing a wide range of issues such as market access for goods, services, investment and government procurement; swift and effective sanitary and phytosanitary procedures; the protection of intellectual property rights, including geographical indications; and the removal of obstacles to digital trade and trade in energy and raw materials. With negotiations relaunched in 2023, both sides are now working toward a comprehensive FTA that could significantly expand economic opportunities and reinforce the partnership for years to come. The first round of negotiations took place from 18th to 22nd September 2023 in Brussels, and the second round from 22nd to 26th January 2024 in Bangkok.
On 16th February 2026 a high-level meeting took place between Thai Minister of Industry Thanakorn Wangboonkongchana and H.E. Luisa Ragher, the EU Ambassador to Thailand, to discuss a roadmap for industrial synergy.
“The European Union is a cornerstone of our economic strategy. Even during this caretaker period, our priority is to maintain policy continuity and provide absolute certainty for investors from the bloc.” Thanakorn stated.
The political framework supporting this relationship has also strengthened. The EU and Thailand concluded negotiations on a Partnership and Cooperation Agreement (PCA), which was signed in December 2022. The PCA provides a broad foundation for cooperation across a wide range of areas and complements the ongoing FTA talks.
