Thailand is moving forward with its negotiations for a Free Trade Agreement (FTA) with the European Union (EU), entering the seventh round of discussions scheduled for September 29 to October 3, 2025. The process, though complex, is a significant step in strengthening Thailand’s economic ties with one of its key trading partners.
Despite Indonesia’s recent success in concluding an FTA with the EU, Thai negotiators have clarified that their timeline remains unaffected. Seven out of the 24 chapters under negotiation have already been finalized, though the initial target of concluding the FTA by December 2025 may be extended due to challenging issues.
The EU is Thailand’s fourth-largest trading partner, with bilateral trade reaching USD 43.5 billion in 2024. Thai exports to the EU are dominated by computers, gems and jewellery, and automobiles, while imports primarily include machinery and pharmaceuticals.
With regional trade dynamics shifting due to Indonesia’s new agreement, Thailand’s efforts to complete its FTA with the EU carry added urgency.
Key Data on Thailand–EU FTA Negotiations
| Aspect | Details |
|---|---|
| Negotiation Round | Seventh round, Sept 29 – Oct 3, 2025 |
| Chapters Concluded | 7 out of 24 completed |
| Target Deadline | Initially Dec 2025, may be extended |
| Key Issues Under Focus | Government procurement, SOE subsidies, competition, sustainable trade, intellectual property, market access |
| Political Context | Ongoing despite potential political transitions in Thailand |
| Trade with EU (2024) | USD 43.5 billion |
| Key Thai Exports to EU | Computers, gems & jewellery, automobiles |
| Key EU Exports to Thailand | Machinery, pharmaceuticals |
| Regional Context | EU also pursuing FTAs with ASEAN nations incl. Indonesia, Philippines, Malaysia |
Implications of Indonesia’s FTA with the EU
- Competitive Landscape: Indonesia’s agreement grants it tariff advantages in EU markets, potentially giving it an edge over Thailand.
- Market Access: Faster access for Indonesian goods could pressure Thailand to accelerate its negotiations to avoid market share erosion.
- Learning Opportunities: Thailand can analyze Indonesia’s FTA to adopt favorable terms and strategies.
- Trade Dynamics: Regional trade competition may intensify, requiring Thai exporters to reassess pricing and export strategies.
- Cooperation vs. Competition: While ASEAN solidarity may drive collaboration, Indonesia’s head start could create rivalry in overlapping export categories.
- Exporter Response: Thai businesses may need to focus on product differentiation and higher value-addition.
- Investment Attraction: Indonesia’s FTA is likely to draw more foreign investment; Thailand must act quickly to remain equally attractive.
Conclusion
Thailand’s FTA negotiations with the EU are progressing steadily but face complex hurdles. With Indonesia already securing preferential access to the EU, Thailand risks losing competitiveness if it lags behind. The finalization of the FTA will be crucial not only for expanding trade but also for maintaining Thailand’s strategic standing within ASEAN and the EU markets.
Glottis Limited 
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