The European Union (EU) welcomed the opportunity to discuss
Thailand's trade and economic policies, underscoring the long-standing and
well-developed economic relationship between them, with the EU being Thailand’s
fourth-largest trading partner and a major source of foreign investment.
Following the deepening of bilateral ties, notably through the Partnership and
Cooperation Agreement (PCA) and the relaunch of Free Trade Agreement (FTA)
negotiations, the EU looks forward to a high-quality FTA that supports
resilient supply chains and enhances Thailand's competitiveness, aligning with
Thailand's goal of achieving high-income status by 2037. The EU, while
commending Thailand's active role in the WTO, raised several key areas of
concern to enhance Thailand's business environment. In services and investment,
the EU urged Thailand to ease restrictions under the Foreign Business Act, lift
foreign equity caps, reduce market concentration in services like logistics and
telecommunications, and streamline licensing procedures. Regarding trade in
goods, the EU encouraged a simplified tariff structure, greater transparency in
import/export restrictions, and non-discriminatory excise taxes on imported
products. Additionally, the EU called for improved transparency in regulatory
approval for animal/plant-based products, preservation of a robust framework
against Illegal, Unreported and Unregulated (IUU) fishing, and greater clarity
on energy-related measures such as third-party access to the gas grid and
fossil-fuel support schemes. The EU encouraged Thailand to continue structural
reforms, increase liberalisation in key sectors, and join the Multi-Party
Interim Appeal Arbitration Agreement (MPIA), expressing confidence that the
review will lead to a more open and predictable trade environment for Thailand.
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December 27, 2025
