Bangkok Steps Up Thailand-EEU FTA Talks During BRICS Meeting
Bilateral Free Trade Agreement Negotiation Proposed During BRICS Discussions in Rio for Eurasian Economic Union
Thailand seized the chance to expedite discussions on a Thailand-Eurasian Economic Union (EEU) free trade agreement (FTA) during a meet-up with Russia on the sidelines of the BRICS Foreign Ministers Meeting in Brazil. According to theForeign Affairs Ministry, this was an opportune moment for Thailand to express its desire to deepen commercial ties with the EEU, which consists of Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan [1][2][3].
At the gathering in Rio de Janeiro, Minister Maris Sangiampongsa engaged in a series of one-on-one talks to reaffirm Thailand's commitment to collaborating closely with the BRICS framework and boosting bilateral relations with member states. The meeting with Russian Foreign Minister Sergey Lavrov focused on boosting bilateral cooperation in tourism and cultural exchange between Thailand and Russia [1].
The discussions with Minister Lavrov also provided a beneficial platform for Thailand to push forward negotiations for the Thailand-EEU FTA, a topic that's been under consideration in previous dialogues. "Our meeting with Minister Lavrov provided a timely platform for Thailand to reiterate its interest in strengthening trade connections with the Eurasian Economic Union," said Spokesperson Nikorndej Balankura [1].
As a key member of both BRICS and the EEU, Thailand viewed this as a strategic opportunity to progress FTA negotiations. The EEU's official data indicates that the bloc accounts for 3.2% of global GDP, 2.2% of global industrial output (2022), and 2.7% of global exports (2021) [2].
Establishing an FTA could offer several advantages to Thailand:
- Economic Growth: An FTA could promote bilateral trade by lowering tariffs and increasing market access, which is likely to spur economic growth for both countries.
- Diversification of Trade Partners: An FTA could help Thailand diversify its trade partners beyond its traditional markets in the West and Asia, thereby reducing its dependency on these regions [1].
- Increased Exports: Thailand could profit from increased exports of goods such as rice, rubber, and electronics to EEU member countries [3].
- Cultural and Tourism Exchange: The discussions underscored opportunities for cultural and tourism exchanges between Thailand and Russia, which could further strengthen people-to-people ties [1].
The FTA negotiations signal a significant move towards increasing economic cooperation between Thailand and the EEU, offering potential benefits in trade expansion, economic growth, and diplomatic relations. However, negotiations might face challenges in aligning tariffs and regulatory standards, requiring careful negotiation to ensure mutually beneficial outcomes [3]. Some local industries may face challenges from increased competition from EEU imports, necessitating strategic planning to protect vulnerable sectors.
Overall, Thailand's attempt to seal an FTA with the EEU could position the country more prominently on the global trade stage and provide Thai businesses with competitive advantages in the EEU's large market [2].
- The BRICS meeting in Brazil served as a briefing for Thailand to voice its key interest in multilateralism with the Eurasian Economic Union (EEU), seeing Thailand as a member of both BRICS and the EEU.
- During the gathering, Thailand's Foreign Minister, Maris Sangiampongsa, met with BRICS member countries, including Russia, to discuss the briefing on bolstering bilateral relations and the progress of multilateral discussions.
- Given that the EEU accounts for significant percentages of global GDP, industrial output, and exports, the prospect of a Thailand-EEU free trade agreement (FTA) could provide key economic growth opportunities for both parties.
- Minister Vieira, as part of these multilateral talks, must ensure that local industries are adequately prepared for increased competition from the EEU market to maintain balanced and mutually beneficial outcomes for Thai businesses and finance sectors.
