Thailand aims to conclude EU FTA talks this year despite lingering agricultural, raw material differences

Thailand aims to conclude free trade agreement (FTA) negotiations with the European Union (EU) by the end of this year, although differences over agricultural products and raw materials remain unresolved. Prime Minister Anutin Charnvirakul made the remarks on Thursday after meeting senior representatives from European business organisations and more than 40 European companies at Government House. Government spokeswoman Rachada Dhnadirek said Mr Anutin welcomed representatives from the EU-Asean Business Council (EU-ABC), the European Association for Business and Commerce (EABC), and companies from nine key industries to discuss trade, investment and economic cooperation. Mr Anutin said European businesses had reaffirmed their interest in expanding investment in Thailand and praised the government's efforts to maintain dialogue with the private sector. He said Thailand was ready to attract investment, promote tourism and strengthen its role as a regional manufacturing base, while seeking European support to conclude FTA negotiations by year-end. The prime minister acknowledged that the talks had slowed during the final stage as both sides worked to resolve differences over sensitive issues. A successful agreement would boost bilateral trade and allow Thai exporters to access European markets without tariff barriers, he said. Asked about the remaining obstacles, Mr Anutin said the key issues involved raw materials and agricultural products, adding that the government needed to proceed carefully to protect the interests of all parties. A source familiar with the negotiations said the EU has strict requirements on the origin of agricultural raw materials, including environmental standards, anti-deforestation measures and chemical use. The bloc also has rules of origin determining the proportion of domestic or partner-country inputs required for products to qualify for zero tariffs. European business representatives reaffirmed Thailand's position as an attractive investment destination due to its strategic location, manufacturing capacity and skilled workforce, Ms Rachada said. They also expressed support for the Thailand-EU FTA and Thailand's bid to join the Organisation for Economic Co-operation and Development (OECD), while proposing closer cooperation in manufacturing, life sciences, food, finance, the digital economy and artificial intelligence.