Thai SMEs urged to utilise FTAs to expand into new markets

The Commerce Ministry will provide guidelines and concrete support for local small and medium-sized enterprises (SMEs) to explore and expand trade opportunities in overseas markets where Thailand has free trade agreements (FTAs).

Arada Fuangtong, director-general of the ministry’s Department of Foreign Trade, told the media this week that member countries of the European Free Trade Association (EFTA) are among the promising new markets for Thai SMEs.

She urged Thai SMEs to start exploring the EFTA market ahead of the implementation of the Thailand-EFTA FTA, which is expected to take effect in early 2027.

The four EFTA member states — Switzerland, Norway, Iceland and Liechtenstein — offer Thai businesses access to markets with strong economic links to the 27-member European Union (EU).

Arada said the European market is generally open to Thai businesses, but SMEs should focus on high-quality products and services with added value that meet international standards, particularly in Switzerland and Norway.

She said local SMEs and other businesses that manufacture and develop products using Thai-origin materials would be able to establish their brands in the EFTA market over the long term.

Arada said the same principles apply to all of Thailand’s existing FTA partners. Thai exporters used FTA trade preferences worth 1.57 trillion baht (US$48.07 billion) during the first half of this year, up 7.33% from the same period last year.

The five FTAs with the highest value of preference use were the ASEAN Trade in Goods Agreement, ASEAN-China Free Trade Agreement, ASEAN-India Free Trade Agreement, Japan-Thailand Economic Partnership Agreement and Thailand-Australia Free Trade Agreement.

Fresh durians recorded the highest use of FTA preferences among individual products, followed by vehicles for transporting goods, synthetic rubber mixed with natural rubber, jewelry and other articles made from precious metals, and gold and silverware and related products.

The Department of Foreign Trade has been promoting FTA benefits among SMEs through activities designed to help them explore new markets and build business networks.

In August, the department took Thai SME operators to Switzerland and Norway under its “Boost Up SMEs to FTA Markets” program to help them prepare for the Thailand-EFTA FTA and explore opportunities in premium markets.

The Thailand-EFTA agreement has been signed but is still undergoing procedures before it can take effect. The Department of Trade Negotiations currently lists it among FTAs that have been signed and are pending implementation.