In a pivotal shift, the European Union and Thailand have reignited Free Trade Agreement negotiations this March, ending a nine-year interval. Initially launched in 2013 after the halt of the Asean-EU region-to-region trade agreement, the announcement of the relaunch of Thailand-EU negotiations, set against Thailand’s evolving political landscape, presents a unique opportunity for both regions. As Chair of the European Parliament’s Committee on International Trade, I am privileged to lead a delegation to Thailand to engage directly with key stakeholders to sculpt a trade deal that addresses our shared challenges.
The EU is Thailand’s fourth-largest trading partner, accounting for 7% of Thailand’s trade volume. This interaction is not just a matter of economics; it is about forging a path towards shared goals of carbon neutrality and sustainable development. A successful trade agreement must be mutually beneficial, reflecting our collective commitment to these ambitions.
My roots in Northern Germany, as the son of a gas station owner and a childhood spent near the bustling Hamburg harbour, have ingrained in me a deep fascination with global trade. Witnessing containers filled with imported goods — such as Thai rubber, crucial for car tyre production, has always been fascinating to me. Growing up in a family closely connected to the automotive industry and to motorcycles, I have a personal understanding of how essential rubber is in our everyday lives in Europe. Yet my interests go beyond the mere flow of products. It is imperative to carefully examine the conditions under which these goods are produced. Fair working conditions and sustainable practices are not just idealistic goals; they are fundamental necessities in trade relations.
Since joining the European Parliament, my mission has been to use trade as a lever to see positive outcomes for all. EU trade agreements do not just cover the exchange of goods; they embody our values. A dedicated chapter with a strong enforcement mechanism on trade and sustainable development underscores this, emphasising workers’ rights, including the freedom to organise and bargain collectively, and the imperative of occupational safety. In Thailand, safeguarding these rights for its 40.1 million workers is not just beneficial, but essential for any trade agreement. Supporting trade unions is central for many reasons that make Thailand a strong country and deliver on the promise of the Thai leitmotif “to leave no one behind”.
Thailand, a nation alive with vibrant democracy and rapid development, leaves an unforgettable impression on all who visit, so I have heard and am keen to witness myself. The rich flavours of its cuisine, from the heat of a spicy curry to the sweetness of mango sticky rice, mirror the country’s dynamic cultural fabric. But underlying these culinary delights is a fundamental truth: quality is paramount. And for quality, sustainable practices in plantation, agriculture and fisheries are indispensable. Sustainability is crucial to protect the livelihood of people.
Thailand’s economic openness, a testament to adaptability, has roots in its historical role as a central trading hub in Southeast Asia. Navigating the tides of history, Thailand preserved its status while engaging economically with the wider world. Embracing this legacy, the current Thai government, under Prime Minister Srettha Thavisin, ambitiously aims to secure trade agreements with 50 countries by 2027.
The Thai government’s reinforced commitment to leading Asean in achieving net-zero emissions is a bold and necessary move. Despite currently lagging behind some regional peers, I am confident that with the right policies, and the right trading partner, Thailand will advance its position. This is not a mere aspiration; it is a pressing need. With 146 extreme weather events in the last two decades and Bangkok’s vulnerability to rising sea levels, the impact of climate change is stark and immediate for the people of Thailand.
In the EU, we face similar challenges. Our farmers grapple with erratic weather, and our communities confront the realities of a changing climate with destroyed houses and associated economic losses. Recognising our role in contributing to these changes, especially through consumption patterns, we are actively working to mitigate our impact. Initiatives like the Carbon Border Adjustment Mechanism, the EU Deforestation Regulation, and the Corporate Sustainability Due Diligence Directive reflect our intent to address climate change responsibly. Yet we must also be mindful of these policies’ effects on smallholders and SMEs, adjusting policies to avoid unintended harm.
Our delegation’s visit is pivotal in shaping a trade environment conducive to addressing these global challenges and listen to concerns of our trading partners. We must avoid paternalism, instead embracing a collaborative approach to understanding and overcoming the obstacles posed by climate change. I believe that it is important to discuss together the hurdles of climate change, and to adapt policies that can accommodate concerns of our partner countries. It is absolutely crucial to take localised efforts to green production schemes, and recognise sustainability opportunities. We also need to see how a trade agreement between Thailand and the EU can set the right conditions to jointly tackle these problems. We need to explore how such agreements can foster solutions, not just for certified rubber plantations but also for greener production practices across industries like steel and aluminium through investments.
Our path towards a more equitable and sustainable future in trade is an ongoing commitment. The restart of the EU-Thailand negotiations are a significant step in this direction. As someone from a working-class background, I am fully devoted to ensuring that our trade policies not only reflect our shared values but also establish the necessary principles and conditions to create meaningful opportunities for everyone.
