The Thai government plans to finalize free-trade agreements (FTAs) with all European Union (EU) member states by the end of this year, Prime Minister Paetongtarn Shinawatra announced.
The initiative seeks to enhance economic relations and stimulate trade between Thailand and the EU, unlocking fresh opportunities for businesses and investors.
Key takeaways
- The Thai government aims to sign free-trade agreements with all EU member states by the end of 2025 to boost economic opportunities.
- Thailand recently signed an FTA with the European Free Trade Association (EFTA), strengthening ties in technology, innovation, and sustainable development.
- Prime Minister Paetongtarn used the 2025 World Economic Forum to promote Thai investment potential and secure major projects like Google’s data center and the Land Bridge megaproject.
The Prime Minister made the statement on Saturday after returning to Thailand following her participation in the 2025 World Economic Forum (WEF) in Davos, Switzerland.
According to the Prime Minister, these agreements will focus on reducing tariffs, improving market access, and fostering collaboration in key sectors such as technology, renewable energy, and agriculture. Negotiations are reportedly progressing swiftly, with both sides expressing optimism about reaching mutually beneficial terms.
On January 23, Ms. Paetongtarn attended the signing ceremony of the FTA between Thailand and the European Free Trade Association (EFTA), held on the sidelines of the WEF. Representatives from Switzerland, Norway, Iceland, and Liechtenstein signed the agreement on behalf of EFTA member states.
This marks the first FTA signed under the current administration. The agreement aims to strengthen economic ties between Thailand and EFTA countries while promoting cooperation in advanced technology and innovation, human capital development, SME support, and sustainable development.
Ms. Paetongtarn emphasized that the government is pushing to sign similar FTAs with EU member countries by year’s end to help Thai businesses gain a stronger foothold in the European market.
During the Davos trip, the Prime Minister also held discussions with foreign investors about opportunities in emerging industries such as semiconductors, data centers, and green energy.
She urged companies considering investments in Thailand to support upskilling Thai workers in advanced technologies.
Among the highlights of her announcements, Ms. Paetongtarn noted Google’s plans to build a new cloud data center in Chon Buri, which is part of its expansion in Thailand. She added that Google will also play a role in improving local workforce skills.
Regarding the 1-trillion-baht Land Bridge megaproject, Ms. Paetongtarn revealed that DP World, a global logistics and supply chain company based in Dubai, is expected to be a key investor in the initiative.
Government spokesman Jirayu Houngsub stated that Ms. Paetongtarn met with top executives from leading global companies during the 55th WEF. One key meeting was with Sultan Ahmed Bin Sulayem, CEO of DP World.
According to Mr. Jirayu, DP World expressed strong interest in expanding Thailand’s logistics capabilities, including enhancements to the Inland Container Depot (ICD) and potential investments in the Land Bridge project to connect ASEAN with global trade networks.
