Free trade agreement with Thailand: Federal Council submits dispatch to Swiss Parliament
Berne, 25.06.2025 — On 25 June, the Federal Council adopted its dispatch on the free trade agreement signed by EFTA and Thailand. This agreement will enhance competitiveness and brings greater legal certainty for Swiss companies on the Thai market.
The agreement closely aligns with more recent FTAs that EFTA has signed with third countries and covers a wide range of areas. Among other things, it includes provisions on trade in industrial goods, processed and unprocessed agricultural products, technical barriers to trade, sanitary and phytosanitary measures, rules of origin, trade facilitation, trade in services, investment, protection of intellectual property, competition, participation in government procurement markets, dispute settlement as well as technical cooperation and capacity building. The agreement also includes a comprehensive and legally binding chapter on trade and sustainable development as well as a specific chapter on small and medium-sized enterprises (SMEs).
Key trade partner in Southeast Asia
Bilateral relations between Switzerland and Thailand are good, diverse and dynamic. Among ASEAN countries, Thailand has the second largest economy after Indonesia. Moreover, with bilateral trade in goods worth CHF 7.4 billion (2023), it is one of Switzerland's main trading partners in Southeast Asia. The agreement improves access to the Thai market for Swiss companies. The potential for discrimination is less for companies from countries that have already signed an FTA with Thailand or those that, like the EU, are currently negotiating such an agreement. Under the terms of the FTA, 99.7% of current Swiss exports to Thailand will benefit from tariff concessions, in some cases with transition periods. Once these periods have expired, Swiss exporters will be able to achieve annual tariff savings of up to USD 63 million (based on previous exports).
The FTA between EFTA countries and Thailand was signed in Davos on 23 January 2025.
The Federal Parliament is expected to discuss the dispatch in its 2025 winter session and 2026 spring session, which should allow the FTA to come into effect in early 2027.
EFTA-Thailand Free Trade Agreement https://www.efta.int/trade-relations/free-trade-network/thailand