EFTA-Thailand Free Trade Agreement Conclusion

EFTA-Thailand Free Trade Agreement Conclusion

Iceland, Liechtenstein, Norway and Switzerland (EFTA) and Thailand have concluded negotiations on a comprehensive free trade arrangement. This agreement will strengthen economic ties as well as boost trade and investment between Thailand and Norway, fostering economic and innovation growth for bilateral business.

On 29 November 2024, the members states of European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) and Thailand met online to conclude negotiations towards an ambitious and broad-based free trade agreement (FTA), to cover trade in goods and services, investment, intellectual property rights, competition, government procurement, trade and sustainable development, legal and horizontal provision and contains chapters on small and medium-sized enterprises on cooperation and capacity building. Karin Büchel, Head of the Free Trade Agreements/EFTA Division at the Swiss State Secretariat for Economic Affairs, acted as the EFTA spokesperson, while Director-General Chotima Iemsawasdikul from the Department of Trade Negotiations in the Ministry of Commerce of Thailand headed the Thai delegation.  

Negotiations towards the comprehensive FTA originally began in October 2005, with two rounds held between 2005 and 2006. Negotiations then were re-launched by EFTA Ministers and Thailand’s Deputy Prime Minister during EFTA’s Ministerial meeting in June 2022, in Borgarnes, Iceland, with a first negotiating round taking place the same month in Bangkok, while the tenth and final round was held in Geneva, Switzerland in August 2024.

By removing tariffs and improving market access to Thailand, the FTA will boost opportunities for strong trade and investment between Thailand and Norway, fostering economic and innovation growth for bilateral business, including services sector, finance, insurance tourism and professional service. Thai companies will benefit from FTA in consulting and engineering, while Thai tourism could see more visitors from EFTA countries. Business-relevant information for SMEs will be made more accessible and public, allowing more chances for business investing in Thailand or Norway and EFTA states. 

Content of the Free Trade Agreement

The FTA integrates EFTA’s new provisions on small and medium-sized enterprises and the newest trade and sustainable development chapter, while also advancing EFTA’s traditional trade interests. The FTA covers the following main subjects:

• Preamble
• Trade in Goods
• Rules of Origin, Trade Facilitation and Customs Cooperation
• Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT)
• Trade Remedies
• Trade in Services
• Investment
• Intellectual Property Rights (IPR)
• Competition
• Government Procurement
• Trade and Sustainable Development
• Small and Medium-sized Enterprises (SMEs)
• Technical Cooperation and Capacity Building
• Horizontal, Legal and Institutional Provisions (including Dispute Settlement)
  

Click button below to find detailed content of each subject.

Alongside the FTA negotiations, EFTA commissioned an ex-ante sustainability impact assessment (SIA) on a potential FTA with Thailand. The final report was published on 26 September 2024. The SIA, which bases itself on quantitative and qualitative methodology, highlights some of the potential economic and sustainability outcomes of an EFTA–Thailand FTA, including positive economic impacts, increased foreign direct investment, and a net reduction in global emissions due to trade diversion effects.
Click button below to find the full SIA report.

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