Thailand Signs Historic FTA with European Free Trade Association

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Prime Minister Paetongtarn Shinawatra shakes hands with Liechtenstein's Foreign Affairs Minister Dominique Hasler during the Thailand-EFTA Free Trade Agreement signing ceremony in Davos, Switzerland, January 23, 2025.

DAVOS — Thai Prime Minister Paetongtarn Shinawatra attended the signing ceremony of the Free Trade Agreement (FTA) between Thailand and the European Free Trade Association (EFTA) in Davos, Switzerland.

The agreement, Thailand’s first FTA under the current government, was signed with EFTA member states Switzerland, Norway, Iceland, and Liechtenstein. Key signatories included Swiss Vice President and Minister of Economy Guy Parmelin, Norwegian Minister of Trade and Industry Cecilie Myrseth, Liechtenstein’s Minister of Foreign Affairs Dominique Hasler, and Iceland’s Permanent Secretary of State Martin Eyjolfsson.

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Thai Prime Minister Paetongtarn Shinawatra attended the signing ceremony of the Free Trade Agreement (FTA) between Thailand and the European Free Trade Association (EFTA) in Davos, Switzerland on Jan. 23, 2025.
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Prime Minister Paetongtarn Shinawatra poses for a group photo with EFTA representatives after the Thailand-EFTA Free Trade Agreement signing ceremony in Davos, Switzerland, January 23, 2025.

The FTA aims to strengthen economic ties and promote cooperation in advanced technology, human capital development, SME support, and sustainable development between Thailand and EFTA nations.

Commerce Minister Pichai called it a milestone marking Thailand’s return to global trade negotiations after a 10-year hiatus. The deal was concluded within three months under PM Paetongtarn’s government.

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The agreement is expected to boost trade and investment between Thailand and EFTA nations, with particular focus on advanced technology, AI, and data centers. In 2024, bilateral trade reached $11.8 billion, representing 1.94% of Thailand’s global trade volume.

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Prime Minister Paetongtarn Shinawatra watches as Commerce Minister Pichai Naripathaphun (left) signs Thailand’s first European free trade agreement with EFTA nations in Davos, Switzerland, January 23, 2025.

Key Thai exports to EFTA include gems, jewelry, watches, seafood products, and electrical components. Major imports comprise medical products, machinery, and scientific equipment.

The FTA requires parliamentary approval and regulatory adjustments, with implementation expected within one year. The commerce ministry will conduct public hearings before submitting the agreement to parliament.

Minister Pichai projected significant investment growth, citing over 1 trillion baht in foreign investment last year. He emphasized this agreement could pave the way for future FTAs with the EU and UAE.

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