Thailand Pursues Proactive Economic Diplomacy for Sustainable Development

Strategic Insights -

Thailand is embarking on a forward-thinking economic diplomacy strategy, led by senior officials who believe that active engagement with key international bodies will have a direct positive impact on the lives of its citizens. This comprehensive approach includes OECD membership, a Free Trade Agreement with the European Union, and full membership in the BRICS bloc. The Thai government sees these initiatives as essential to transforming the country's economy and society, addressing development priorities, and promoting international cooperation.

Key Takeaways:

  • Thailand's pursuit of OECD membership is a significant step towards transforming the country's economy and society, with potential benefits including a boost in GDP, elevated regulatory standards, enhanced transparency, and improved public well-being.
  • The Thai government aims to conclude a crucial Free Trade Agreement with the European Union by the end of 2023, which would provide tariff advantages for Thai businesses exporting to the 27 EU member states.
  • Thailand currently holds the status of a BRICS partner country and is seeking full membership, with most existing BRICS members reportedly receptive to its application. However, decisions within the group are made by consensus, and there is no immediate agenda for new member admissions.
  • Thailand's diplomatic delegation emphasized that these initiatives are not mere "talk shops," but rather directly linked to the economic well-being of the Thai people and involve the country's private sector.
  • The OECD and EU FTAs are seen as opportunities for Thailand to adapt domestic laws and regulations to international standards, improving transparency and public well-being.
  • Thailand's OECD membership would further solidify its commitment to democratic values and human rights, contributing to its ongoing development.

Statistics:

  • Thailand has completed five rounds of negotiations for the EU FTA, with four out of 23 chapters finalised.
  • Vietnam's experience with the EU FTA has seen a 40% increase in trade since its agreement concluded five years ago.
  • Thailand aims to conclude the EU FTA talks by the end of this year.
  • The EU has already concluded FTAs with Singapore and Vietnam and is currently negotiating with Malaysia, the Philippines, Indonesia, and Thailand.

Sources:

  • Diplomatic briefing titled "Proactive Economic Diplomacy (OECD, BRICS, EU FTA)" held on the sidelines of the global Ambassador and Consul-General Meeting.
  • Contributions from Ambassador to France, Sarun Charoensuwan; Ambassador to Belgium, Kanchana Patarachoke; Ambassador to Russia, Sasiwat Wongsinsawat; Ambassador to Brazil, Kundhinee Aksornwong; and Charge d'affaires to Pretoria, Republic of South Africa, Paisit Boonparlit.
  • Article citing a speech by Ambassador Sarun Charoensuwan, "Joining the OECD is not easy; it has spanned two governments and three prime ministers, demonstrating the Thai government's commitment."