The EU & Thailand announced the relaunch of their FTA negotiations on 15 March – paving the way for a trade agreement between the EU & the 2nd largest ASEAN economy. Aside from the clear strategic benefits that such an agreement would bring to the EU, it will support EU exporters’ diversification strategy & increased focus towards ASEAN - to complement existing well-established markets.
Thailand is the EU's 4th most important trading partner in the region (and 25th worldwide). The potential for EU spirits is evident: aside from its economic importance in the region, Thailand has traditionally been an in-demand destination for world travellers, regularly featuring in the world’s top international tourist destinations.
However, a combination of very high tariffs (54 to 60% ad valorem depending on the category), tax discrimination with local white liquor and complex and cumbersome regulatory requirements have prevented EU spirits producers from tapping this potential. As a result, EU spirits exports to Thailand only represented a value of €16.2 million in 2022, ranking as our 45th export market.
The resumption of FTA negotiations with Thailand offers a good opportunity to address many of these challenges & to start a dialogue on regulatory changes in the alcoholic beverages sector with Thailand. We welcome the joint EU-Thailand announcement, which paves the way for the realisation of one of the key priorities of our recently published EU-ASEAN strategy.
