Importance of the EU-Thailand Free Trade Agreement for global trade governed by rules, according to the Swedish trade leader
In the face of escalating uncertainty in global trade, the European Union (EU)-Thailand Free Trade Agreement (FTA) is increasingly crucial for maintaining an orderly and rule-based global trading system. This was emphasized by Anders Ahnlid, the director-general of the Swedish National Board of Trade, in a recent opinion piece.
Thailand's and Sweden's joint membership in the World Trade Organisation (WTO, established in 1995) celebrates its 30th anniversary this year. The multilateral trading framework, which originated from the General Agreement on Tariffs and Trade (GATT) and has been overseen by the WTO since its inception, has underpinned international trade for almost eight decades. Both Thailand and Sweden have long supported this rules-based trading system.
Nevertheless, Ahnlid expressed concern over the United States abandoning the use of WTO guidelines in its trade policy, setting a potentially dangerous precedent for other countries to follow suit.
To illustrate the benefits of rule-based trade, Ahnlid pointed to the EU-Vietnam Free Trade Agreement (EVFTA) – an accord that has boosted Vietnam's status as ASEAN's foremost exporter to the EU. The EVFTA has contributed to economic growth, job creation, and greater access to high-quality European products for consumers. Vietnam's exports to the EU have increased by nearly 50%, while EU imports have risen by over 40%.
In the context of EU-Thailand FTA negotiations, Ahnlid underscored the importance of like-minded partners such as the EU, Thailand, and others collaborating to fortify the rules-based trading system. He suggested that the final stages of the EU-Thailand FTA negotiations might provide an opportunity to build new trade partnerships, with the EU-Thailand FTA serving as a cornerstone. In addition, an integration of EU trade with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could provide further support for rule-based trading.
As Thailand positions itself as a key player in global trade negotiations, the successful implementation of the EU-Thailand FTA could bolster its economic resilience and geopolitical standing.
- The EU-Thailand Free Trade Agreement (FTA) is seen as fundamental by Anders Ahnlid, the director-general of the Swedish National Board of Trade, for preserving a stable and rule-based global trading system, similar to the benefits seen in the EU-Vietnam Free Trade Agreement (EVFTA).
- Ahnlid, in a recent opinion piece, advocated for Thailand, the EU, and other like-minded partners to collaborate and strengthen the rules-based trading system, particularly in the context of the ongoing EU-Thailand FTA negotiations.
- Ahnlid's concern over the United States disregarding WTO guidelines in its trade policy has created a potential hazard for other countries to follow, threatening the stability of the global finance and business ecosystem.
- In an aim to enhance rule-based trade, Ahnlid proposed that the final stages of the EU-Thailand FTA negotiations could foster new trade partnerships, with the EU-Thailand FTA serving as a foundation, and the integration of EU trade with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) providing additional support.
