Yesterday (18 September), the UK and Thailand signed a new deal aimed at boosting trade between the two countries, with the government claiming that the new agreement will help save car manufacturers as well as those in food and drink on the costs of trading.
Trade minister Douglas Alexander signed the Enhanced Trade Partnership (ETP) during his trip to Bangkok, his first to Asia since his appointment in July.
Following the signing, Alexander said:
“Thailand’s growth is something the UK can and should be capitalising on.
“This Partnership will bring our two countries closer together and help British businesses sell to Thailand, supporting jobs and growth around the country.
Testing standards
The ETP included an agreement on vehicle emissions testing, under which Thailand has accepted the UK’s testing standards.
Accordingly, there will no longer be a need to re-test cars to Thai standards, which the Department for Business and Trade (DBT) claims will save companies time and money.
DBT says that a similar agreement is being developed for motorbikes.
Additionally, a deal was recently struck to make it easier for Thai companies to import UK food and drink products, with documents now being sent via email rather than by paper with a stamp from the British embassy.
Thai economy
Thailand is the second largest economy in South East Asia, traded £5.8bn worth of goods and services with the UK in the four quarters to the end of Q1 2024. This was an 11.6% decrease on the same period the year before.
Last year, the top exported electrical goods exported to the UK from Thailand included power generators, medicine, metal ores and scrap, and cars, while Thai exporters largely sent food products, jewellery and rubber goods in return.
Alexander, who was in Rihyad and Oman earlier this week on a trade promotion campaign, departed for Laos to attend the 56th ASEAN Economic Ministers Meeting held today (19 September), where DBT says he will talk on trade promotion issues.
The Lothian East MP, one of the few remaining ministers from the Blair era, met Chartered Institute of Export & International Trade director general Marco Forgione earlier this month to discuss relationships with key trade partners and priorities for the UK trading community.