UK signs pivotal trade and investment deal with Thailand

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From The Thaiger

The United Kingdom government has finalised a significant trade and investment agreement with Thailand, marking the first such deal since the Labour government assumed office in July.

Commerce Minister Pichai Naripthaphan and UK Trade Minister Douglas Alexander signed the enhanced trade partnership agreement in Bangkok yesterday, September 18. The deal seeks to eliminate specific trade barriers, focusing on sectors such as technology, customs, and standards but does not encompass broad tariff reductions.

Under Prime Minister Keir Starmer, the Labour government is prioritising trade to drive economic growth, as highlighted by Chancellor of the Exchequer Rachel Reeves. Reeves criticised the previous Conservative administration for leaving a £22-billion (approximately 967 billion baht) deficit in the national budget.

During the General Election campaign leading up to the July 4 vote, Labour pledged to focus on smaller, targeted trade deals rather than pursuing expansive free trade agreements that often face prolonged negotiations or fail to materialise.

The UK has already engaged in sector-specific agreements with Thailand. For instance, a recent deal allows Bangkok to accept UK vehicle emissions testing standards, eliminating the need for additional testing under Thai regulations. The Department for Business and Trade indicated that this arrangement could save UK car manufacturers millions of pounds. A similar agreement for motorbikes is currently under negotiation.

Additionally, a recent breakthrough permits UK food and drink manufacturers to submit conformity documentation via email, bypassing the need for physical stamps from the British Embassy. This change is estimated to be worth up to £70 million for UK businesses over five years.

The new agreement will establish working groups to address similar issues in areas such as digital trade and clean growth. Trade between the UK and Thailand, Southeast Asia’s second-largest economy, already amounts to £5.9 billion annually.

Debra Crew, chief executive at Diageo, which owns brands like Johnnie Walker whisky, expressed optimism about the partnership, saying she hopes it will be the first step towards resolving costly trade barriers.

https://thethaiger.com/news/national/uk-signs-pivotal-trade-and-investment-deal-with-thailand