The UK and Thailand have put pen to paper, signing a new ambitious Enhanced Trade Partnership (ETP).
The agreement, signed by UK Trade Minister Douglas Alexander and Thai Commerce Minister Pichai Naripthaphan in Bangkok on 18 September, is the first of its kind since the new Labour government took office in July.
The ETP aims to boost trade and investment between the two countries and focuses on 20 core areas from automotive and digital to customs and tourism.
The trade pact follows a string of sector-specific deals already in place between the countries including the squashing of required vehicle emissions retesting for UK cars imported to Thailand – an agreement that will bolster the UK's third-biggest export to Thailand, worth £150.8mn between Q4 2022 and Q3 2023.
UK producers of food and drink, from chocolate and cheese to soft drinks and frozen foods, have also benefited from new arrangements for trade, as Thai importers of these goods can now skip the time-consuming process of getting a physical stamp on their conformity documentation from the British Embassy and instead, submit the paperwork by email.
The switch breaks down a sizeable barrier for trading with the UK and is expected to be worth as much as £70mn to UK businesses over five years.
Trade between the UK and Thailand – Southeast Asia's second-biggest economy – is already worth £5.9bn a year. The Thai economy is rapidly growing, and its middle class is expected to more than double to almost 14 million by 2030, creating huge opportunities for UK businesses to tap into.
"Thailand's growth is something the UK can and should be capitalising on," said Alexander, following the signing of the agreement. "This partnership will bring our two countries closer together and help British businesses sell to Thailand, supporting jobs and growth around the country."