RELATIONS WITH THE EU
The European Union and Thailand
This page provides an outline of the relationship between the European Union (EU) and Thailand in areas such as political, economic and trade relations, financial cooperation and humanitarian aid.
Political Relations
Following general elections on 24 March 2019, a multi-party coalition government was sworn in on 16 July 2019. On 14 October 2019, the Foreign Affairs Council considered it appropriate for the EU to take steps towards broadening its engagement with Thailand, including on issues of human rights, fundamental freedoms, and democratic pluralism.
On 14 December 2022, the EU-Thailand Partnership and Cooperation Agreement (PCA) was signed by both parties during the EU-ASEAN Commemorative Summit in Brussels, Belgium. The European Parliament approved the EU-Thailand PCA on 14 June 2023. On Thursday, 29 August 2024, the Thai Parliament is scheduled to consider and vote to ratify the EU-Thailand Partnership and Cooperation Agreement (PCA).
Economic and Trade Relations
In 2021, trade between the EU and Thailand amounted to €35.4 billion (approximately THB 1.3 trillion) and making the EU the 4th largest trading partner of Thailand.
The EU is Thailand's fourth largest export market. In 2021, exports from Thailand to the EU totalled about €22.1 billion (approx. THB 816 billion).
The EU is the third largest importer to Thailand. In 2021, total imports from the EU to Thailand amounted to around €13.3 billion (approx. THB 491 billion).
Figures for 2021 show the key exports from Thailand to the EU include machinery and mechanical appliances (26.4% of total exports from Thailand); electrical machinery/equipment and electronic appliances (23%); automotive and its parts (8.7%); rubber products (8.2%); gems and jewellery including precious metals (5.4%); optical, photographic, measuring, checking, precision, medical or surgical instruments (5.1%); textile and clothing (3.4%); plastic products (2.3%); meat and fishery products (1.9%).
Key EU exports to Thailand Thailand include machinery and mechanical appliances (18.4% of total exports to Thailand); electrical machinery/equipment and electronic appliances (13.6%); pharmaceutical products (8.7%); chemicals (6.9%); automotive and its parts (6.5%); optical, photographic, measuring, checking, precision, medical or surgical instruments (5.3%); gems and jewellery including precious metals (3.8%); plastic products (3.6%); iron/steel articles (1.9%); furskins (1.8%); rubber products (1.8%); aircraft and its parts (1.8%).
In order to further deepen their trade and investment relationship, the EU and Thailand launched negotiations on a Free Trade Agreement (FTA) in March 2013. Both sides want a comprehensive agreement covering subjects such as:
- Trade tariffs and non-tariff measures,
- Services,
- Investment,
- Public procurement,
- Intellectual property,
- Regulatory issues and,
- Sustainable development.
The negotiations were suspended in April 2014. Following the Conclusions of the Foreign Affairs Council of the EU on 14 October 2019, steps are being taken towards the resumption of negotiations based on a common understanding of an ambitious and comprehensive FTA.
On 15 March 2023, the EU and Thailand announced the relaunch of negotiations for an ambitious, modern and balanced free trade agreement (FTA), with sustainability at its core. This announcement confirms the key importance of the Indo-Pacific region for the EU trade agenda, paving the way for deeper trade ties with Thailand, the second largest economy in South-East Asia, and further strengthening the EU's strategic engagement with this burgeoning region.
You can follow updates about the negotiations here: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/thailand/eu-thailand-agreement_en
Cooperation Section for International Partnerships
The Cooperation Section is the extended arm in Thailand of the Directorate Generate for International Partnerships.
It is responsible for the formulation of the EU’s international partnerships and sustainable development policies in Thailand.
The Cooperation Section for International Partnerships contributes to the European Union’s external relations policy and priorities by developing partnership in Thailand in five main areas: Environmental Sustainability and Climate Resilience; Science, Technology & Innovation and Digitalisation; Sustainable Growth & Jobs; Migration and Durable Solutions for Refugees; and Governance, Peace and Security & Human Development.
The ultimate goal of the EU, through its cooperation section, is to address inequalities by building inclusive and sustainable societies and to promote democracy, human rights and the rule of law.
We support Thailand on its path towards sustainable development, adapting our projects and initiatives to the evolving needs and gradual development of the country. We base our collaboration on international laws and multilateralism, notably, the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and the Paris Agreement on Climate Change.
We work closely with our key partners including the Royal Thai Government, civil society and think tank organisations, UN agencies, the private sector as well as other stakeholders and partners, sharing the same values and aiming towards sustainable development.
We place great emphasis on actions aimed at strengthening gender equality and women empowerment and promoting the inclusion of young people, ensuring that no one is left behind.
Current EU-supported projects are implemented across Thailand, including in the Deep South. EU-funded projects primarily focus on health, migration, human rights, environment and climate change, trade and private sector development, sustainable consumption and production, social and human development.
Moreover, as part of the EU COVID-19 response, recovery and preparedness projects paying special attention to vulnerable populations form a key part of our portfolio.
In addition to the project and initiatives mentioned above, Thai authorities and civil society organisations actively participate in regional and thematic programmes.
Global Gateway
Global Gateway is a EU quality investment offer to its partners around the world. It aligns partners’ interests with EU interests in a geopolitical perspective. It’s the EU contribution to narrowing the global investment gap accompanying the social and just green and digital transitions beyond European borders and boosting competitiveness and security of global supply chains.
Global Gateway is a way to connect Europe and partners across the globe, based on trust , sustainability and mutual interest. It provides investments for transformative, large-scale projects, while offering a respectful and qualitative and horizontal/equal partnership to our partner countries in line with the Sustainable Development Goals and the Paris Agreement.
Global Gateway boosts smart, clean and secure links in the digital, transport, energy and climate-relevant sectors, and strengthens education, research and health networks. It promotes investments in hard infrastructure by improving the enabling environment, regulatory frameworks, norms and standards, technology transfer, know- how.
EU investment in key areas linked to human and social development - digital, energy, transport, health, education – will contribute to achieve the SDGs and the Paris Agreement, both in partner countries and in Europe.
Global Gateway will fully respect and promote international standards of labour protection and respect for human rights, as well as good governance and transparency, which makes the overall approach unique and consolidate a distinctive engagement with partner countries.
Across the world, Global Gateway aims to mobilise up to €300 billion in investments between 2021 and 2027 with a mix of grants, concessional loans and guarantees to de- risk private sector investments.
Global Gateway projects are discussed with our partners to decide together on how best they can benefit from our investment offer to ensure that it results in improvement in their necessary infrastructure and connectivity.
Global Gateway is implemented through a Team Europe approach mobilising all EU institutions, EU Member States, their Development Finance Institutions and Export Credit Agencies, the European Investment Bank, the European Bank for Reconstruction and Development and the European private sector. The joint mobilization of all these financial instruments will be key to make sure the Global Gateway meets the infrastructure priorities of partner countries and, at the same time, creates business opportunities for the European private sector abroad.
The European Investment Bank (EIB) is a predominant partner in Global Gateway projects. This reflects the Bank’s ownership by the EU Member States and alignment with EU policy, backed up by the EFSD+ dedicated guarantee (around 2/3 of the EFSD+ guarantee). The open architecture of the EFSD+ also allows for other Team Europe actors to provide for an impactful contribution to Global Gateway projects.
To date, agreements have been signed with the EIB mobilizing over €30 billion to boost private and public sector investment in Global Gateway projects. These agreements mark an important step in rolling out the EU's Global Gateway strategy and achieving development impact by enabling the EIB to enhance not only public but also private investments in key areas like digitalisation, climate and energy, transport, health, research and education in partner countries.
Other financial institutions, such as the EBRD, national banks and credit agencies also play an important role mobilizing the private sector.
INDO-PACIFIC
- The Indo- Pacific is an area of increasingly strategic significance for Europe. The EU intends to increase its engagement with the region to build partnerships that reinforce the rules-based international order, address global challenges and lay the foundation for a rapid, just and sustainable development. The trade and economic relationship is a core element of this partnership in a period when Indo-Pacific enjoys strong economic growth, which is nonetheless hampered by a heightened quality infrastructure gap. Therefore, Global Gateway is an initiative of mutual interest that has a high impact potential.
- In this context, the EU, through its Strategy for Cooperation in the Indo-Pacific and Global Gateway, engages constructively on the ground with concrete initiatives and programmes that respond to the priorities of our partners, increasing the EU positive influence in the region. The last EU-Indo Pacific Ministerial Forum recalled the importance to strengthen our joint efforts in order to fully deploy the Global Gateway for the benefit of our partners in the region.
- Global Gateway and the Indo-Pacific strategy are complementary frameworks with common priorities, and the twin (green & digital) transition and connectivity are among the most important and prominent areas of EU action, which promote sustainable development and secure supply chains. They also contribute to the achievement of the Sustainable Development Goals and the Paris Agreement.
- In its relations with the Asian region, highlighted by strategic partnerships, high political dialogues and digital partnerships, the EU will therefore build on the important momentum in the digital field. Asia is in high demand of secure digital infrastructure and technologies facing important challenges. Several countries still experience low levels of digital development and coverage, and seek a secured expansion.
- Working as a Team Europe, closely with financial institutions, export credit agencies, private sector and like-minded regional and global actors, the EU will contribute to the development of adequate digital and secured infrastructure links and networks. This includes technical assistance for good regulatory practices and digital innovation across sectors (utilities, smart cities) and digital skills for secure and seamless cross-border connectivity both within the region and between the EU and IP.
- South East Asia is among the most vulnerable regions in the world to the impacts of climate change, environmental degradation and natural disasters and a hotspot for biodiversity loss, deforestation and pollution. It is also a significant emitter of greenhouse gases and faces growing energy needs, which are still mostly met by fossil fuels. However, the growing middle class in its drive for prosperity has started seeking more sustainable solutions.
- Working with ASEAN, the EU developed two major Team Europe Initiatives as Global Gateway flagships, also endorsed at the recent EU-ASEAN Summit, promoting specifically green transition and sustainable connectivity. The Copernicus Philippines programme on earth observation for disaster risk management that will, among others, establish a national mirror site, upgrade digital skills and capacity building activities of the Philippines Space Agency.
- Just Energy Transition Partnerships are under preparation in the G7 framework with Indonesia and Vietnam, also within the framework the G7 Partnership for Infrastructure Investment.
- South Asia is one of the least integrated parts of Asia, and at the same time one of the fastest growing sub-region. Global Gateway will contribute significantly to green power generation and transmission, including from the Himalayas to India and Bangladesh, to support the phasing out of fossil power generation promoting the adoption of renewables, sustainable management of natural resources and regional connectivity.
- The EU-India Connectivity Partnership governed by sustainability principles offers the framework whilst the upcoming Just Energy Transition Partnership is an additional context to bust green regional energy connectivity.
- In the Pacific, the regional Team Europe Initiative “EU – Pacific Green Blue Alliance” is aligned with the Pacific Leaders’ 2050 Strategy for a Blue Pacific Continent and aims to mobilise additional public and private funding, to, among others, accompany the twin green and digital transitions beyond Europe’s borders and support resilience and connectivity. Under the climate action and resilience strands of this TEI, it is envisaged to build a hydro-electric dam in Fiji and construct a multi–purpose deep seaport in Kiribati.
- The Kiwa initiative deployed its newly decided activities in the Pacific region. This multi-donor facility aims at attracting climate finance to support the Pacific countries and territories in the protection of their biodiversity through nature-based solutions.
- Overall, Asia - Pacific remains highly important for the EU efforts with several identified transformational projects to be promoted in 2023 and beyond.
Humanitarian Aid
The EU’s humanitarian aid arm began its operations in Thailand in 1995, supporting all of its humanitarian projects across Asia and the Pacific. Headquartered in Bangkok, it has responded to numerous natural and man-made crises across the region, with funding for these activities exceeding €120 million.
While much of this aid was previously channelled towards providing essential humanitarian assistance to Burmese refugees living in camps along the Thai border, the responses in recent years have focused on meeting the humanitarian needs of refugees and asylum seekers arriving in Thailand. Current programmes include providing protection services and health care assistance to Rohingya refugees living in detention centres in the country. In response to the ongoing COVID-19 pandemic, prevention materials, such as personal protective equipment, have been provided to the refugees. Meanwhile, awareness-raising campaigns and workshops have also been organised to prevent the further spread of the virus, as well as to address the increased COVID-19-related stigma experienced by the Rohingya and other migrants.
Given the multi-faceted challenges in southern Thailand—the protracted conflict, ongoing COVID-19 pandemic and recurring natural hazards—the EU invests in supporting the most vulnerable communities, as well as our humanitarian partners, to be as best prepared as they can for disasters and crises. The overall aim is to build the country’s capacity to better prepare and respond to natural hazards with special consideration to protection and the well-being of children, particularly in times of crises.
In addition, the EU provides emergency relief assistance during natural disasters, such as the 2004 Indian Ocean tsunami and the 2011 floods.