The United Kingdom and Thailand are set to sign an Enhanced Trade Partnership today, 18 September 2024, aimed at boosting trade and investment between the two nations. Trade Minister Douglas Alexander and Thai Commerce Minister Pichai Naripthaphan will sign the agreement in Bangkok, marking a significant development in bilateral economic relations.
The partnership comes at a time when trade between the UK and Thailand already amounts to £5.9 billion annually. With Thailand’s economy growing rapidly and an expanding middle class, expected to reach 14 million by 2030, the agreement offers significant opportunities for British businesses.
The new trade pact focuses on collaboration in key sectors such as automotive, tourism, investment, digital trade, financial services, and education. It also sets the stage for discussions on a future UK-Thailand Free Trade Agreement.
Minister Alexander emphasized the importance of the partnership, stating: “Thailand’s growth is something the UK can and should be capitalizing on. This partnership will bring our two countries closer together and help British businesses sell to Thailand, supporting jobs and growth across the country.
The partnership follows recent efforts to ease trade barriers between the two countries. One key development is the agreement on vehicle emissions testing, which will allow UK-tested cars to bypass re-testing in Thailand, saving UK manufacturers millions. Additionally, the process for Thai companies to import UK food and drink has been streamlined, with digital documentation replacing physical stamps from the British Embassy. These changes are expected to benefit UK businesses by £40m-£70m over the next five years.
The signing of this agreement aligns with the UK’s broader strategy to enhance economic ties with Southeast Asian nations. Minister Alexander will also attend the 56th ASEAN Economic Ministers Meeting in Laos, where he will continue discussions on regional trade partnerships.
Industry leaders have welcomed the partnership, with HSBC Group highlighting the growing synergies between the UK and ASEAN, while Diageo PLC expressed optimism over the reduced trade barriers for exporting Scotch Whisky to the region.
This enhanced trade partnership is expected to foster talent mobility, digital trade, and investment opportunities, creating a stronger economic bond between the UK and Thailand.
