Thailand s FTA

Thailand’s Free Trade Agreements / Overview 

Currently, Thailand has 13 FTAs with 18 countries

Thailand has implemented bilateral trade agreements with various countries, including Australia, Chile, China, Laos, New Zealand, Japan, Peru, and India.

Thailand is also a member of ASEAN, which was established in 1967. ASEAN is currently comprised of 10 members, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. ASEAN implemented a number of FTAs with its trading partners, including ASEAN-Australia and New Zealand, ASEAN-China, ASEAN-India, ASEAN-Japan, and ASEAN-Korea.

In addition, the Regional Comprehensive Economic Partnership (“RCEP”), which is Free Trade Agreement between 10 ASEAN countries and its six trading partners, namely, Australia, China, India, Korea, Japan, and New Zealand was signed in November 2020.

Key Benefits of Free Trade Agreements 

  • To expand your business by providing preferential access, and reducing trade barriers in global markets.
  • FTAs are legally binding, so they provide certainty and security for exporters, importers and investors. They help businesses to become, and remain, competitive in those markets.
  • To help address behind-the-border barriers that would otherwise impede the flow of goods and services; encourage investment; and improve the rules affecting such issues as intellectual property, e-commerce and government procurement.

The listing of FTA countries

  • FTAs in force
    • Thailand-India Free Trade Agreement (TIFTA)
      (Date of entry into force: 1 September 2004)
    • Thailand-Australia Free Trade Area (TAFTA)
      (Date of entry into force: 1 January 2005)
    • Thailand-New Zealand Closer Economic Partnership (TNZCEP)
      (Date of entry into force: 1 July 2005)
    • Japan-Thailand Economic Partnership Agreement (JTEPA)
      (Date of entry into force: 1 November 2007)
    • Thailand-Peru Free Trade Agreement (TPFTA)
      (Date of entry into force: 31 December 2011)
    • Thailand-Chile Free Trade Agreement (TCFTA)
      (Date of entry into force: 5 November 2015)
    • ASEAN Free Trade Area (Date of entry into force: 1 January 1993) includes; ASEAN Trade in Goods Agreement (ATIGA) ASEAN Trade in Services Agreement (ATISA), ASEAN Comprehensive Investment Agreement (ACIA)
    • ASEAN-China Free Trade Agreement (ACFTA)
      (Date of entry into force: 01-Jan-2005)
    • ASEAN-Japan Comprehensive Economic Partnership (AJCEP)
      (Date of entry into force: 01-Dec-2008)
    • ASEAN-Korea Free Trade Area (AKFTA)
      (Date of entry into force: 01-Jan-2010)
    • ASEAN-India Free Trade Area (AIFTA)
      (Date of entry into force: 01-Jan-2010)
    • ASEAN-Australia and New Zealand Free Trade Agreement (AANAFTA)
      (Date of entry into force: 01-Jan-2010)
    • ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA)
      (Date of entry into force: 11-Jun-2019)

  • FTAs under negotiation
    • Thailand-Turkey Free Trade Agreement
    • Pakistan-Thailand Free Trade Agreement (PATHFTA)
    • Sri Lanka-Thailand Free Trade Agreement (SLTFTA)
    • Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade Area

  • FTA in the process of reviving the negotiations.
    • Thai-EU Free Trade Agreement
    • Thailand-European Free Trade Association Free Trade Agreement

  • Prospective FTA negotiations
    • ASEAN – Canada Free trade agreement
    • Thailand and the United Kingdom Free trade agreement
    • Thailand-Eurasian Economic Union Free Trade Agreement

  • Negotiations suspended P
    • Thailand-United States Free Trade Agreement (TUSFTA)

Useful Information

  • Website of NTR Thailand National Trade Repository : https://www.thailandntr.com/en
  • This website is an information gateway on Thailand’s trade in goods, trade in services and e-commerce where you can find information about FTAs, national trade and customs laws and regulations.

FTA Current Issuesw

RCEP: the world’s largest regional trade agreement to enter into force on 1 January 2022

RCEP is a Free Trade Agreement between 15 countries include the 10 members of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Vietnam, and Singapore) along with Australia, China, Japan, South Korea, and New Zealand. RCEP was signed at the ASEAN Summit on November 15, 2020 after eight years of negotiation.

The Regional Comprehensive Economic Partnership (RCEP) Agreement entered into force on the 1st of January for most of its members, namely: Australia, Brunei Darussalam, Cambodia, China, Japan, Lao PDR, New Zealand, Singapore, Thailand and Viet Nam. For the remaining signatory States, RCEP will enter into force 60 days after the deposit of their respective instrument of ratification, acceptance, or approval to the Secretary-General of ASEAN, which is the Depositary of the RCEP Agreement.

The RCEP, covering 2.27 billion people, or almost 30 percent of the global population, with a combined gross domestic product of $26 trillion, or about 30 percent of global GDP in 2020.
RCEP will not be able to eliminate complications stemming from existing agreements. However, it can standardise and harmonise discipline issues related to rules of origin, dispute settlement, competition, intellectual property rights, and e-commerce. Such predictability would be comforting to investors.

The JSCCIB support Thailand joining CPTPP

After China, Taiwan, and the United Kingdom expressed interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) submitted the letter to Prime Minister Prayut Chan-o-cha to ask the government to speed up the decision-making process to join the CPTPP. If Thailand joins the CPTPP too late, it may be subjected to additional membership restrictions once the three nations are in. The JSCCIB also intends to request that the Ministry of Commerce and the Ministry of Foreign Affairs take into account the conclusions of its study on the effects of the CPTPP on the Thai economy.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP is comprehensive, multilateral free trade agreement between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Since CPTPP was into force in 2018, Several nations have expressed interest in joining this mega trade agreement. On September 16, China formally applied to join CPTPP. The U.K. is also in talks to join; Indonesia, the Philippines, South Korea, and Taiwan have all expressed interest in joining as well.
The CPTPP representing nearly 500 million consumers in Asia-Pacific or about 6.7% of the world’s population, with a combined GDP worth US$10.5 trillion, accounting for 13.3% of global GDP. If the bloc includes China, the population of the CPTPP market will enlarge to more than 1.9 billion (25% of the world’s population), with combined GDP worth up to $25.3 trillion (30% of global GDP).