Thailand under pressure: trade agreement with Great Britain urgently needed!

Thailand under pressure: trade agreement with Great Britain urgently needed!

In today's global economic landscape, where every brushstroke on trade barriers has a global impact, Thailand is under considerable pressure to move quickly towards a free trade agreement (FTA) with the UK. The President of the British Chamber of Commerce Thailand (BCCT), Pinyapa Somphong, strongly warns that the country could fall behind compared to the EU, as the EU will enjoy better trading conditions from 2026. Currently, the trade volume between Thailand and the UK has grown significantly and reached 5.9 billion pounds last year, showing that both countries have great potential that is far from being exhausted. Weekly flash has reported that the BCCT is calling on the Thai government to act quickly and accelerate negotiations on the FTA.

However, it would be extremely necessary to speed up the negotiations in order not to disadvantage exporters in both countries. Trade between Thailand and Great Britain, like this Thailand tip, the potential deal could provide tariff and regulatory benefits equivalent to those of the EU. As the oldest foreign chamber of commerce in Thailand, the BCCT has over 560 member companies from various industries, all of which are hoping for a positive turn in the negotiations.

Government under pressure

“Now the new Thai government must quickly push forward the talks within the framework of the Joint Economic and Trade Committee (JETCO),” demands Pinyapa. Talks started promisingly and led to the signing of an Expanded Trade Partnership (ETP) in 2024, but have been stalled by global developments, particularly US trade policy changes.

Like sleepy giants, the JULY and Transport Ministers, Thai bureaucracy and outdated laws continue to deter foreign investors. An example of this is Schedule 3 of the Foreign Companies Act, which is cited as the main obstacle. In order to survive in international competition, regulatory reforms are urgently required to reduce bureaucratic hurdles and improve decision-making authority. UK Government Actions aim to promote trade and investment between the two countries.

Market opportunities and challenges

The new partnership, signed in September 2025, is a promising step to further expand trade relations. Thailand's middle class is expected to grow to almost 14 million people by 2030, which could create new opportunities for both British businesses and the Thai population. If talks continue and relations intensify, British companies in sectors such as automotive, tourism and financial services could benefit and thus also contribute to strengthening the Thai economy.

Time is short and the challenges are enormous. 2025 is seen as a key year for Thai-UK economic relations and requires measures that go beyond the usual. Pinyapa stressed that Thailand should strengthen the interests of both countries and attract investors to remain competitive in global trade. We can only hope that the Thai government manages to take the necessary steps to pave the way for many entrepreneurs.