Thailand and India are enclosed in a parallel thrust to secure the free trade agreements (AFF) with the European Union (EU) by the end of this year, driven by a shared desire to unlock new markets and to mitigate the risks of climbing global trade tensions, in particular those from future potential prices imposed by a return from the United States.
The FTAs, designed to reduce commercial barriers and rationalize trade, are a key objective for Thailand, which currently has 16 of these agreements with 23 countries. The most recent addition was an agreement with Bhutan, signed earlier this month.
However, several other ALE negotiations are accelerated, including that with the EU in 29 countries. The ambitious objective of Thailand is to conclude these talks on Christmas day, aimed at stimulating its access to European markets and hiding against the fallout from a potential resurgence of aggressive American trade policies.
This emergency follows the decision of the previous American administration to implement reciprocal prices on imports to treat commercial imbalances, a policy that could see Thai goods faced with a heavy levy of 36%.
India shares the determination of Thailand to finalize an ALE with the EU in the same period. According to reports from the Thai Department of International Trade Promotion, negotiations between India and the EU, which have lasted nearly two decades, are now close to a successful conclusion.
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