UPSC Current Affairs
Thailand seeks an ambitious trade deal with EU
Context: Recently, the EU will hold a second round of talks on a free trade agreement with Thailand, with Bangkok keen on negotiations being wrapped up by early 2025. Thailand’s economy which has been languid for years, could be given an uplift by the trade pact. The pact would also solidify the EU’s pivot to Southeast Asia, with Brussels already having secured trade deals with other countries like Vietnam and Singapore.
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Context: Recently, the EU will hold a second round of talks on a free trade agreement with Thailand, with Bangkok keen on negotiations being wrapped up by early 2025. Thailand’s economy which has been languid for years, could be given an uplift by the trade pact. The pact would also solidify the EU’s pivot to Southeast Asia, with Brussels already having secured trade deals with other countries like Vietnam and Singapore.
Context:
- Recently, the EU will hold a second round of talks on a free trade agreement with Thailand, with Bangkok keen on negotiations being wrapped up by early 2025.
- Thailand’s economy which has been languid for years, could be given an uplift by the trade pact.
- The pact would also solidify the EU’s pivot to Southeast Asia, with Brussels already having secured trade deals with other countries like Vietnam and Singapore.
- Other agreements with countries like Indonesia and the Philippines are currently under negotiation.
- The latest discussions between the EU and Thailand are likely to be tense.
- Both sides want to protect their own fishery industries, which is proving to be major difficult block.
- And Bangkok says the EU is asking for a more comprehensive and higher deal than Thailand has entered into with any of its existing free trade pacts.
- The EU is Thailand’s fourth largest trading partner, after the countries of China, the US and Japan, and bilateral trade was worth around €32 billion ($34.8 billion) in the first 10 months of 2023.
Thailand seeks economic boost:
- Brussels and Bangkok agreed to re-launch their negotiations last March, almost a decade after an earlier talks collapsed because of the EU’s opposition to a military coup in Thailand in 2014.
- Thai Prime Minister held talks with European Commission President on the sidelines of the World Economic Forum in Davos earlier this month.
- Other high-ranking trade officials from the European Parliament also visited Bangkok in December to discuss the trade pact.
- Prime Minister Srettha has put trade deals at the heart of his economic policy.
- Bangkok intends to conclude free trade talks this year with Sri Lanka, the United Arab Emirates and the European Free Trade Association, a trade bloc of Iceland, Liechtenstein, Norway and Switzerland.
- According to the Institute of Future Studies for Development a free trade agreement with the EU would boost Thailand’s annual economic growth by 1.2%, while yearly exports and imports would grow by 2.8%.
EU seeks a ‘comprehensive’ deal with Thailand:
- According to sources familiar with the negotiations, Brussels wants Bangkok to make the bidding process for government contracts more transparent and easy.
- The EU is also looking for better market access for the service sector and also improved environmental standards.
- Prelims: Key facts, institutions, locations and terminology in the article.
- Mains: Connect the topic with Economy, International Relations, Defence.
- Revision: Use the article headings to prepare concise notes and answer-writing points.
Test your understanding
Questions from this article
Prelims practiceWith reference to Thailand seeks an ambitious trade deal with EU, consider the following statements:
- Recently, the EU will hold a second round of talks on a free trade agreement with Thailand, with Bangkok keen on negotiations being wrapped up by early 2025.
- Thailand’s economy which has been languid for years, could be given an uplift by the trade pact.
- The pact would also solidify the EU’s pivot to Southeast Asia, with Brussels already having secured trade deals with other countries like Vietnam and Singapore.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
View answer
Answer: (d) 1, 2 and 3. All three statements are drawn from the article.
Mains practiceDiscuss the background, key issues and significance of Thailand seeks an ambitious trade deal with EU for India.
Answer in 250 words.
View answer approach
- Context:
- Thailand seeks economic boost:
- EU seeks a ‘comprehensive’ deal with Thailand:
Frequently asked questionsFrequently asked questions
Why is Thailand Seeks An Ambitious Trade Deal With Eu in the news?
Context: Recently, the EU will hold a second round of talks on a free trade agreement with Thailand, with Bangkok keen on negotiations being wrapped up by early 2025. Thailand’s economy which has been languid for years, could be given an uplift by the trade pact.
What are the key facts about Thailand Seeks An Ambitious Trade Deal With Eu?
The pact would also solidify the EU’s pivot to Southeast Asia, with Brussels already having secured trade deals with other countries like Vietnam and Singapore. Other agreements with countries like Indonesia and the Philippines are currently under negotiation. The latest discussions between the EU and Thailand are likely to be tense.
Why is Thailand Seeks An Ambitious Trade Deal With Eu important for UPSC preparation?
The topic connects current developments with Economy, International Relations, Defence and is relevant for both objective revision and analytical answer writing.