H.E. Dr. Thani bin Ahmed Al Zeyoudi, the Minister of State for Foreign Trade, and Jurin Laksanawisit, the Deputy Prime Minister and Minister of Commerce of Thailand, have agreed to commence negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Thailand.
The negotiations will begin on May 16 in the UAE, according to a joint statement signed by the two officials. H.E. Dr. Thani Al Zeyoudi highlighted that these talks are a significant step toward the UAE’s growth agenda and demonstrate the country’s role as a major facilitator of global trade. He also mentioned that the negotiations are a natural continuation of the strengthening relations between the UAE and Thailand, which began with the establishment of the first UAE-Thai Business Council in February 2023, according to WAM.
He added: “Thailand is an increasingly important trade and investment partner for the UAE, and a high-growth economy in the heart of an exciting, rapidly emerging region. We have enjoyed strong bilateral trade growth in recent years and believe a Comprehensive Economic Partnership Agreement will deliver a wealth of opportunity in sectors such as tourism, food security, IT, logistics and financial services. These negotiations represent another important step in our growth agenda and underline our role as a key enabler of global trade.”
Thailand is the second-largest economy in Southeast Asia and is expected to grow 3.8% in 2023, driven by the recovery of the country’s critical tourism sector. The services sector contributes 58.3% of Thailand’s GDP, which is well-developed. A Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Thailand will help to further enhance the rapidly growing non-oil trade between the two nations, which rose 21% in 2022 to reach $6.1B.
The UAE’s main exports to Thailand include ethylene polymers, gold, vegetable residues, delivery vehicles, and parts, with iron, steel, and cosmetics emerging sectors. Office machinery and parts, motor vehicle parts, tires, and aluminum plating are among Thailand’s primary exports.
The UAE aims to double its foreign trade and national economy by 2031 as part of its ambitious foreign trade plan. It has already signed four CEPAs with India, Israel, Indonesia, and Turkey, with the first two already in effect and the remaining two to be signed later. The UAE is also in negotiations with other strategically important regional and global markets to establish similar agreements.
