Thailand has expressed optimism that an economic partnership agreement (EPA) with South Korea will boost its exports and enhance bilateral trade relations.Thailand has expressed optimism that an economic partnership agreement (EPA) with South Korea will boost its exports and enhance bilateral trade relations. Negotiations for the EPA commenced on July 9-11, with the first round held in Bangkok. The Thai delegation was led by Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations, while South Korea’s delegation was headed by Deputy Minister for Trade Negotiations Roh Keon-ki. The EPA aims to lay the groundwork for a free trade deal between the two countries by late 2025. Thailand anticipates that South Korea will increase its investments in the country, while Thai exports of meat, fishery products, tropical fruits (such as mango, guava, and mangosteen), and wood products to South Korea will witness a surge. According to Deputy Commerce Minister Suchart Chomklin, the agreement is expected to enhance trade relationships and attract more South Korean investments in Thailand. He believes that Thai exports in several sectors, including agriculture, will benefit greatly from the FTA. The negotiations will cover various areas, including trade in goods, trade remedies, origin of goods, and customs and trade facilitation. The joint main committee will oversee the overall progress of the negotiation process, while 13 joint sub-committees will delve into specific details. Thailand and South Korea have previously had trade agreements like the Korea-ASEAN FTA and Regional Comprehensive Economic Partnership, but the EPA aims to strengthen bilateral trade and economic cooperation further. In 2022, South Korea was Thailand’s 12th largest trade partner, with a total trade value of $14.7 billion. Exports from Thailand to South Korea amounted to $6.07 billion, while imports were valued at $8.66 billion. Key Thai exports included refined oil, rubber products, sugar, electrical circuits, and aluminum products, while major imports from South Korea comprised machinery and mechanical components, chemical products, iron and steel, and electrical circuits. In the first five months of 2023, the trade value between Thailand and South Korea reached $6.30 billion, with exports from Thailand totaling $2.51 billion and imports reaching $3.79 billion. The Thai government is confident that the EPA will foster stronger economic ties with South Korea and provide a significant boost to Thailand’s exports.
Thailand hopes pact will boost exports
Ms Chotima and Mr Keon-ki pictured during the first round of the negotiations held in Bangkok on July 9-11.
South Korea and Thailand held their first talks over an economic partnership agreement (EPA) on July 9-11, seeking to pave the way for a free trade deal between the two countries by late 2025.
Deputy Commerce Minister Suchart Chomklin said the Department of Trade Negotiations (DTN) hosted the first round of the Korea-Thailand Economic Partnership Agreement negotiations.
The Thai delegation was led by Chotima Iemsawasdikul, director-general of the DTN, while the South Korean delegation was headed by Roh Keon-ki, deputy minister for trade negotiations from South Korea’s Ministry of Trade, Industry and Energy.
Officials from the Foreign Affairs, Finance, Agriculture and Cooperatives, and Digital Economy and Society ministries also attended.
Mr Suchart said the agreement should upgrade the mutual trade relationship, with South Korea investing more in Thailand, while shipments to Seoul increase for meat and fishery products, tropical fruits (such as mango, guava and mangosteen) and wood products.
While the joint main committee will be overseeing the overall progress of the negotiation process, a total of 13 joint sub-committees will discuss in detail the different areas of the free trade agreement (FTA), including trade of goods, trade remedies, origin of goods and customs and trade facilitation, Ms Chotima said.
Since declaring the launch of EPA negotiations in March, both sides have pursued preliminary tasks including preparation of a draft accord and consulting related ministries.
In this first round of talks, they will lay the foundation for speeding up the process by identifying their positions on the EPA by sector, reviewing issues and devising responses.
“There are seven rounds of negotiations scheduled for a deal. Both sides aim to complete the negotiations by the end of 2025. The second meeting will be hosted by South Korea in Seoul in September,” said Ms Chotima.
“Korea already has trade deals with Thailand, like the Korea-Asean FTA and Regional Comprehensive Economic Partnership, but we still have room for improvement in terms of bilateral trade and economic cooperation.”
Among the Thai products expected to benefit from the FTA are meat and fishery products (such as frozen and processed chicken meat and frozen and processed seafood), tropical fruit (such as mangoes, guava and mangosteen), other food products (such as flour, sauces and condiments), wood products (such as processed lumber, particleboard and plywood), and chemical products.
She said more Thai service businesses are expected to enter the South Korean market, including transportation, warehousing, hotels, and restaurants.
Last year, South Korea was Thailand’s 12th-largest trade partner with both nations recording US$14.7 billion in total trade value between them.
Exports were valued at $6.07 billion, while imports were valued at $8.66 billion.
Key exports to South Korea include refined oil, rubber products, sugar, electrical circuits, and aluminium products. Key imports include machinery and mechanical components, chemical products, iron and steel, and electrical circuits.
In the first five months of this year, the trade value between Thailand and South Korea was $6.30 billion.
Exports were valued at $2.51 billion, while imports were valued at $3.79 billion.
