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December 18, 2024

The EU-Thailand Free Trade Agreement

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The EU-Thailand Free Trade Agreement is drawing a lot of interest as the fourth round recently concluded in Bangkok. Despite negotiations starting in 2013, there was a ten-year pause before we saw the first round of negotiations end in September 2023. The initial plan was for four rounds of negotiations, with the free trade agreement (FTA) finalized in 2025. However, following the fourth round it is clear that the negotiations are still ongoing. Now, the question is: how much closer are the EU and Thailand to concluding their FTA?

The EU initially submitted 13 chapter proposals for the FTA, followed by a further 12, and these became the springboard for the negotiations. Given the complexity of agreeing on an accord of this size, there will probably be additional proposals submitted in 2025. These chapters have seen sector-specific negotiation groups formed, and although it has been difficult to truly gauge the status, steady progress has been made in each.

Arguably one of the biggest points of discussion pertains to the customs process for imports and exports. Both sides aim to align their practices in relation to rules of origin and custom rates, with preferential tariff treatments offered to goods originating from Thailand and the EU, as well as talks of eliminating or reducing relevant taxes. The desire for a faster customs clearance can be seen in EU proposals for clearance of goods on arrival. Although there has been progress in agreeing to a more simplified customs process, more work needs to be done before we hear news of the agreed-upon fees and charges, or confirmation of what goods would be allowed temporary admission.

When we consider customs clearance, it is important to also examine what this FTA could mean for rightsholders. One piece of good news is that it appears all three rounds of negotiations surrounding the intellectual property (IP) chapter have been based on the proposal submitted by the EU. While there are no guarantees that the chapter will be identical to the proposal that was submitted, it is likely that the final chapter will at least be formed from the bones of the proposal. For example, this is good news for businesses that have geographical indications on their products, as these (assuming the proposal is accepted) would be protected as long as the protections and marks remain alive in the home jurisdiction.

IP rights aren’t the only thing potentially subject to favorable treatment under the FTA. The same extends to the services and investment chapter. The proposal put forward by the EU is for national treatment for services and service suppliers—something that would be highly welcomed by those in the relevant industry, although not by those offering services such as audiovisual assistance, as that will probably fall outside the scope of the chapter.

With many in-depth discussions completed and many more to go, we are left to wonder when the final agreement will be settled. However, we know that such a large FTA can’t be finalized overnight. As such, we eagerly await the summary of the round-four negotiations and look ahead to what we can expect following round five. Based on what we have already seen, we hope to hear the good news that chapters on IP, transparency and good regulatory practices, and final provisions and exceptions have been agreed upon, as these appear to be the closest to settlement. However, we will wait until the EU publishes their latest summary report before making any promises.

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