Thailand is once again considering joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) while continuing efforts to finalise a free trade agreement with the European Union, as rising protectionism and aggressive tariffs reshape the global trading environment.
Foreign Minister and Deputy Prime Minister Sihasak Phuangketkeow said the country should pursue both initiatives simultaneously rather than waiting for negotiations with the European Union to conclude.
‘CPTPP has a number of major economies. If we don’t catch the train, we will miss the train,’ Sihasak said on Wednesday during Nikkei’s Future of Asia forum in Tokyo.
‘Working on CPTPP shouldn’t wait until we conclude the trade deal negotiations with the EU. We should go together,’ he added.
Thailand revisits CPTPP membership
The CPTPP came into force in December 2018 as the successor to the Trans-Pacific Partnership. Its 12 members include Australia, Brunei, Canada, Japan, Malaysia, Mexico, Singapore, the United Kingdom and Vietnam.
Sihasak said the global multilateral trading system was no longer functioning as it once did and stressed the importance of regional trade arrangements.
‘With protectionism and also “reciprocal” tariffs initiated by the US administration, we have to keep free trade growing and going. That is why these regional free trade arrangements are very important,’ he said.
Thailand is currently in the final stage of negotiations to conclude a trade agreement with the European Union this year. The country had previously explored joining the CPTPP until around 2020, but discussions slowed because of domestic opposition and the government’s focus on responding to the COVID-19 pandemic.
According to Sihasak, many of the standards that initially posed challenges for Thailand’s accession have since been addressed through the country’s negotiations with the European Union.
The United Kingdom became the latest member to join the CPTPP in December 2024, bringing the agreement’s coverage to well over 10 percent of global gross domestic product. Other members include Chile, New Zealand and Peru, while applicants include China, Taiwan, Indonesia, the Philippines, Costa Rica, Ecuador, Uruguay, Ukraine and the United Arab Emirates.
Border tensions remain fragile
Sihasak also commented on relations with Cambodia, where a ceasefire has remained in place following three weeks of border clashes last December.
‘The ceasefire is still very fragile,’ he said. ‘There are sources of tension around the border, but it’s important that we exercise self-restraint and avoid any provocation that could lead to incidents.’
He expressed dissatisfaction with Cambodia’s decision to initiate a compulsory conciliation process under the United Nations Convention on the Law of the Sea to address maritime boundary issues rather than pursuing bilateral discussions, saying the move had further complicated relations.
While welcoming assistance from other countries in facilitating dialogue and restoring ties, Sihasak emphasised that Thailand and Cambodia ultimately need to work together to overcome their differences.
Economic outlook and business concerns
The minister acknowledged that the closure of the Thailand-Cambodia border has disrupted the supply chains of some Japanese companies, adding that it is difficult to provide a timeline for reopening.
He said he had been meeting with Japanese businesses and was exploring ways for Thailand to offer temporary relief measures.
Responding to a recent description by the Financial Times that labelled Thailand the ‘sick man of Asia’, Sihasak said the characterisation was ‘a little bit of an exaggeration’.
However, he acknowledged that the country’s economic growth remains below its potential, attributing this in part to a lack of policy continuity caused by political instability in recent years.
He added that he believes the current government can provide political stability and create an opportunity to advance economic restructuring and reform.
