In a joint parliamentary sitting on June 17, Thailand ratified five trade agreements at once, led by the Thailand-European Free Trade Association (EFTA) FTA. The package also included the Thailand-Bhutan FTA, the Upgraded ASEAN-China Free Trade Area (ACFTA 3.0), the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA), and Thailand's accession to the WTO Agreement on Fisheries Subsidies. Commerce Minister Suphajee Suthumpun described the EFTA deal, signed in Davos on January 23, 2025, as a landmark, marking Thailand's first FTA with a group of European countries. Upon entry into force, Iceland, Liechtenstein, Norway and Switzerland will immediately eliminate import tariffs on a wide range of Thai products.
Thus far, the ATIGA and ACFTA remain Thailand's two most heavily used agreements, accounting for USD 24.0 billion and USD 19.7 billion in preferential exports respectively in the first nine months of 2025. The Upgraded ACFTA 3.0 will leave existing market-access commitments unchanged, and will instead add five new chapters covering the digital economy, green economy, competition and consumer protection, supply chain connectivity, and Micro, Small, and Medium sized Enterprises (MSMEs). The revisions will also enact customs reforms requiring perishable goods to be released within six hours of arrival. The Upgraded ATIGA revision will reduce non-tariff barriers, smooth digital trade procedures, improve regulatory transparency, and introduce a more efficient dispute settlement mechanism, in addition to targeting cooperation on supply chain resilience and access to essential goods during crises.
The EFTA agreement also anchors Bangkok's broader engagement with Europe, which analysts view as part of a wider diversification strategy alongside its preparation for potentially eventual Organization for Economic Cooperation and Development (OECD) membership, a process Thailand began in 2024 with the goal of joining by 2030. Thailand's ongoing FTA negotiations with the EU have concluded 11 of 24 chapters, with both sides targeting conclusion within 2026. Once a completed EU deal enters into force, Thailand would gain preferential access to a market of over 450 million consumers, placing it alongside Singapore and Vietnam as the only ASEAN members with European FTAs in force.
