BANGKOK — The British Chamber of Commerce Thailand (BCCT) is urging the Thai government to accelerate negotiations on a free trade agreement (FTA) with the United Kingdom, warning that delays could put British and Thai exporters at a disadvantage once the Thailand–EU FTA takes effect in 2026.
BCCT President Pinyapa Somphong said the chamber wants the upcoming UK deal to provide tariff and regulatory benefits comparable to those offered to the European Union, ensuring fair competition for both sides.
“The value of trade between Thailand and the UK has grown substantially. We hope the new Thai government will move quickly to resume and advance these negotiations,” Pinyapa said to Prachachat Business.
Talks began under the Joint Economic and Trade Committee (JETCO) framework, leading to the signing of an Enhanced Trade Partnership (ETP) in 2024, but discussions have since slowed following global tariff shifts sparked by U.S. policy changes earlier this year.
The UK is already pursuing multiple trade pacts, including an FTA with Indonesia expected in early 2026 and ongoing talks with India. Meanwhile, Thailand’s pending deal with the EU could tilt trade toward European markets if UK tariffs remain higher.
Investment Climate and Business Priorities
Founded in 1946, the BCCT is Thailand’s oldest foreign chamber of commerce, with more than 560 member companies across sectors such as education, energy, retail, and finance. The chamber supports both inbound and outbound investment and hosts regular events to promote trade and policy dialogue.
Pinyapa said both economies are facing headwinds in 2025 as Thailand focuses on stimulating consumption and tourism, while the UK prioritizes domestic business recovery. She expects investor confidence to improve in 2026 as policies become clearer under the new Thai administration.
Call for Regulatory Reform
The BCCT also called on Thailand to reform outdated and overlapping regulations that continue to deter foreign investors, citing the Foreign Business Act’s Annex 3 as a key obstacle.
“If redundant laws are reduced, it will be easier for foreign investors to do business and trade in Thailand,” Pinyapa said, noting that Vietnam has moved faster in streamlining investment procedures.
The chamber urged the Thai government to simplify approvals and reduce bureaucratic overlap between the Board of Investment and other agencies to make investment decisions faster and more cost-efficient.
“Cutting red tape will attract more foreign capital and benefit Thai consumers through greater competition, innovation, and quality,” Pinyapa said.
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