Thailand has made significant progress in upgrading its Free Trade Agreement (FTA) with Peru, Commerce Minister Suphajee Suthumpun announced. The Department of Trade Negotiations reported that both countries have reached a substantive agreement on core issues, with only minor technical points remaining, which are being expedited toward final resolution. The move paves the way to conclude the decade-long upgrade negotiations by the end of 2025.
Negotiations had been stalled for over ten years before resuming in mid-2024. Minister Suphajee credited renewed momentum to bilateral meetings with Peru's ambassador to Thailand in late October and subsequent discussions with Peru's trade minister at the APEC meeting in Gyeongju, South Korea, in early November. These engagements helped both sides reach agreement on key elements, including market access for goods and services, investment facilitation, and trade cooperation rules, modernizing the FTA to reflect the global economic environment and support long-term business operations.
Peru's strengths in natural resources, agriculture, food industries, and mining, as well as its role as a gateway to South American and Pacific markets, make it a strategic partner for Thailand. Concluding the upgraded FTA is expected to benefit Thai businesses by expanding markets, diversifying supply chains, and deepening economic ties with South America, while promoting competition and growth for consumers and businesses in both countries.
Next steps include resolving remaining technical matters, legal scrubbing of the agreement for accuracy across languages, and completing domestic approval processes in each country before the upgraded FTA can enter into force.
Source: www.nationthailand.com
