The UK and Thailand are set to establish an Enhanced Trade Partnership designed to strengthen trade and investment ties between the two countries.
The agreement, involving UK Trade Minister Douglas Alexander and Thai Commerce Minister Pichai Naripthaphan, aims to build on the existing trade relationship, which is valued at GBP 5.9 billion (approximately USD 7.3 billion) annually. Thailand, as the second-largest economy in Southeast Asia, offers significant opportunities for UK businesses, with its rapidly growing economy and a middle class expected to nearly double by 2030.
The partnership is structured to help the UK Government drive economic growth by expanding sales and investment in key sectors such as automotive, tourism, digital trade, financial services, and education. It also sets the stage for both nations to explore the possibility of a future UK-Thailand Free Trade Agreement.
One of the goals of this partnership is to help UK businesses take advantage of Thailand’s economic expansion, which in turn will support job creation and economic growth in the UK. The initiative follows a number of steps that have already been taken to make it easier for UK companies to enter the Thai market. For instance, an agreement on vehicle emissions testing allows Thailand to recognise UK standards, eliminating the need for re-testing and potentially saving UK car manufacturers millions of pounds. A similar arrangement is being discussed for British motorbike manufacturers.
Additionally, the trade partnership has simplified processes for Thai companies importing UK food and drink products, such as chocolate, cheese, and frozen foods. Thai businesses are now able to submit conformity documentation electronically, replacing the previous time-consuming process that required physical paperwork to be stamped by the British Embassy. This change is estimated to save UK businesses between GBP 40 million and GBP 70 million (approximately USD 49 million to USD 86 million) over five years.
The partnership also outlines plans to address emerging trends in trade and investment, including talent mobility, sustainability, and digital trade, with a view to unlocking opportunities across a range of industries.
(Source: UK government)
