The Joint Foreign Chambers of Commerce (JFCCT) is urging Thai prime minister Anutin Charnvirakul to expedite the ratification of the Free Trade Agreement (FTA) with non-EU European countries to boost mutual trade.
Supareak Charlie Chomchan, vice chairman of the JFCCT, said the faster completion of the FTA process, with the European Free Trade Association (EFTA), comprising Norway, Switzerland, Iceland and Liechtenstein, the better. These countries are not members of the European Union (EU).
“The agreement has been signed, but for it to take effect, it must be ratified by all parliaments involved. Thailand needs to ratify first, so the four European counterparts will follow,” Supareak emphasised.
Former prime minister Paetongtarn Shinawatra signed the FTA in Davos, Switzerland on January 23rd this year.
In addition to the FTA ratification process, the vice chair stressed that The Thai government must reduce the complexity of business and trade laws and regulations, noting that “we need a strong country leader to bring every parliamentarian on board to change these complex laws.”
Highlighting the need for a regulatory “guillotine,” Supareak said the government should establish a body dedicated to streamlining regulations, adding that digitalization is also essential for attracting future investment.
Another critical negotiation for Thailand is the FTA with the EU. Supareak urged Anutin’s government to take a more proactive approach, pointing out that ASEAN peers are moving faster.
“Indonesia has concluded its FTA process with the EU, but Thailand is yet to finalise its own. Anutin’s government needs to act proactively to conclude the deal,” he opined.
Regardless of the positives or negatives of the FTA, the government can use the FTA funding to support businesses,” he said.
Lastly, the vice chair underscored the importance of liquidity for Thai SMEs, warning that they remain vulnerable amid regional competition and supply chain disruptions.
“The priority should be financial support or other financial measures for businesses. SMEs, in particular, cannot wait too long. They can’t just wait and see. Access to soft loans should be made much easier,” he noted.
By Franc Han Shih, Thai PBS World
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