Thailand-Sri Lanka FTA endorsed by Thai Parliament

02 Apr '24

1 min read

Pic: Adobe Stock

Insights

This FTA is poised to bolster economic ties between the two nations, fostering mutual growth.
The FTA is the 15th deal of its kind to be signed by Thailand and the first since Srettha Thavisin became the Prime Minister last year.
FTA is expected to improve competitiveness of Thai businesses, expand trade and investment opportunities for Thai investors.

Recently, the Thai Parliament endorsed the Thailand-Sri Lanka Free Trade Agreement (FTA), awaiting ratification by both the nations.

This marks Thailand’s 15^th FTA and the first under Prime Minister Srettha Thavisin’s tenure.

Commerce minister Phumtham Wechayachai stated that the Ministry will prompt government agencies to fulfil necessary actions before formally notifying Sri Lanka of Thailand’s completion of internal requirements.

The FTA aims to enhance Thai businesses’ competitiveness and unlock trade and investment prospects, leveraging Sri Lanka’s strategic position in pan-Indian Ocean trade routes. It foresees reduced tariffs on 85 per cent of products between the two countries, benefitting various Thai sectors such as textiles, pet food, automobiles, and electronics.

Additionally, Thai entrepreneurs gain expanded access to Sri Lanka’s markets, including sectors like technology, finance, and hospitality, where Thailand demonstrates potential.

To safeguard Thai investors, the agreement reportedly includes provisions for dispute resolution in cases of expropriation or political instability, ensuring protection against adverse events.

In 2023, bilateral trade between Thailand and Sri Lanka amounted to $415 million, with Thai exports comprising gems, refined oil products, and textiles, while imports included gems, garments, and machinery.

Fibre2Fashion News Desk (DR)

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