Thailand, being an ASEAN member has signed FTAs with Japan, New Zealand, Chile, Peru, China, and Laos. However, the negotiations on the Thai-EU free trade agreement presently stand suspended. This is majorly because RCEP doesn’t supersede the already existing FTAs, but facilitate a negotiated convergence of all these agreements when it comes to trading regulations and customs procedures.
Thailand expects competitive potential under RCEP era considering their positive trade balance in petrochemicals, agriculture, retail, food, and tourism industries with the non-ASEAN trading partners. Thus the foreign investments are expected to be benefited indirectly by the industrial estates of the country and also its transport facilities and power plants.
The Thai government is found promoting the pact as an essential tool for the country’s quick economic recovery and growth. Thus, the parliament is to approve the RCEP trade by February 2021 in order to ratify it within the year.
Similarly, 2021 may also see Thailand as becoming a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Note: South Korea, New Zealand, Japan, China, and then ASEAN countries including Thailand got involved in a free-trade agreement to create a partnership namely, the Regional Comprehensive Economic Partnership. This is the biggest trading block so far in the world. For your information, its members account for nearly 30% of the population across the world. However, this agreement will get into work in 60 days after 3 non-ASEAN member states and 6 ASEAN member states have signed the agreement.
