Thai PM Paetongtarn Shinawatra heads to Davos to seal Thailand’s first European trade pact with EFTA nations, boosting ties with Norway, Switzerland, Iceland, and Liechtenstein. The landmark deal aims to attract investments and strengthen trade partnerships globally.
Thailand will sign a free trade agreement on Wednesday with the European Free Trade Association (EFTA). It will be the first free trade pact with European states. Specifically, the signing will take place at the World Economic Forum (WEF) annual meeting in Davos, Switzerland. Thailand will be represented by the Minister of Commerce Pichai Naripthaphan. At the same time, PM Paetongtarn Shinawatra will be a participant, and Deputy Prime Minister and Minister of Finance Pichai Chunhavajira will also be at the five-day event to drum up inward investment.
Prime Minister Paetongtarn Shinawatra will be in Davos this week to attend the annual World Economic Forum (WEF) meeting from January 20–25. The PM will also be accompanied by Minister of Commerce Pichai Naripthaphan.
In addition, a large contingent of cabinet ministers are accompanying Ms Paetongtarn. Not least, the Minister of Foreign Affairs Maris Sangiampongsa and Minister of Agriculture Narumon Pinyosinwat as well as others.
In particular, on Wednesday, January 23, Thailand will sign a free trade agreement with the European Free Trade Association (EFTA). In short, this includes non-European Union countries in Europe that are aligned with the bloc.
The European Free Trade Association (EFTA) consists of Norway, Switzerland, Iceland, and Liechtenstein. At length, it is Thailand’s 16th free trade agreement, bringing the number of countries with formalized trade ties to 23.
Thailand’s trade deficit with EFTA shows the need to strengthen exports and enhance trade partnerships
However, Thailand, in truth, imports more than it sells to the four-nation bloc. In the first nine months of 2024, the four countries accounted for 2.06% of the kingdom’s total trade volume. The trade volume in that period was $11.467 billion.
In brief, Thailand exported $4.122 billion and imported $7.345 billion from the bloc. At the same time, there appears to be an overlap in products and services exchanged between the countries.
Thailand is already accustomed to extensive and developed trade links with these nations. For instance, it exports watches, jewellery, electronics, iron, canned and processed seafood, machinery, cosmetics, and air conditioners.
In turn, the four-nation bloc sells jewellery, meat, pharmaceuticals, medical instruments, machinery, and seafood to Thailand.
The pact was hailed by Trade Policy and Strategy Office (TPSO) chief Poonpong Naiyanapakorn as a landmark agreement.
Firstly, it is hoped that it will be followed by a European Union free trade agreement. In the meantime, the pact will strengthen Thailand’s position—for instance, as a supply chain location and a destination for inward investment.
EFTA pact boosts trade ties and lays the groundwork for future agreements with the European Union
Mr. Poonpong noted that the pact was advanced and included sustainability measures.
“Negotiating FTAs will help Thailand forge new trade partnerships, reduce trade barriers, enhance confidence, and attract foreign trade and investment,” he outlined. “It will raise standards, provide competitive advantages, and boost the export capabilities of Thai businesses.”
On Wednesday, the pact will be signed on behalf of the kingdom by Minister of Commerce Pichai Naripthaphan. PM Paetongtarn will sign as a witness.
On Sunday, the PM was delighted to acknowledge that Bangkok had been voted the world’s second favourite city in a massive Time Out international poll. The survey of 20,000 world travellers praised the city for its atmosphere, culture and the level of happiness among its residents. It is also seen by travellers as offering great value for money.
Ms. Paetongtarn explained the accolade on the X social media network herself.
“Time Out conducted a survey of about 20,000 tourists, and the result is that Bangkok ranks No. 2 among the best cities in the world for 2025, out of 50 cities,” she wrote. “The survey found that #ThaiFood and #ThaiCulture are the key factors that make tourists fall in love with the city and want to return. This is the charm of Thailand!”
Bangkok’s global popularity grows as tourists praise its culture, atmosphere, and excellent value for money
In the meantime, the high-profile government presence at Davos this year signals that the Prime Minister is continuing the policy of former PM Srettha Thavisin. In short, this policy aims for the Thai government to remain visible and active on the international stage.
Certainly, this policy bore dividends last year, with significant technological investments announced by the world’s largest U.S.-based technology firms, particularly in data centres.
Thai PM and top leaders fly the flag at Davos as IMF says AI benefits wealthier countries far more
Vital European Union free trade deal with Thailand with stiff demands from Brussels to take time
However, on Sunday, Mr. Pichai, the Minister of Finance, said that at Davos this year, Thailand is aiming to broaden its base. As a country whose economy is still heavily agricultural, this is critical. Mr. Pichai suggested that government ministers will be targeting investments in agriculture, biotechnology, healthcare and tourism.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
Thai PM and top leaders fly the flag at Davos as IMF says AI benefits wealthier countries far more
PM again attacks central bank on interest rates as deputy Finance Minister raises bond concerns
Prime Minister Srettha in Japan talking up EV investments in Thailand’s vital automotive industry
Land Bridge to PM Srettha’s economic policy dreams on the agenda with a 2029 launch date
Transport ministry looks at launching Thailand’s own shipping line to support economic growth
RCEP deal agreed as India opts out – busy Bangkok ASEAN summit concludes on a low-key
