• The Kingdom of Thailand and the United Kingdom (UK) share a rich history of commerce that first began with trade links in the 17th century, predating even the Treaty of Friendship and Commerce between Great Britain and Siam, better known as the Bowring Treaty, which was signed in 1855. The Treaty marked the establishment of diplomatic relations between the two Kingdoms which have since developed into a strong and mutually rewarding strategic partnership.
  

Trade

• Economic relations have long been at the forefront of Thai-UK relations. Currently, the UK is Thailand’s fourth largest trading partner in Europe, with bilateral trade in 2024 reaching around 5,200 million pounds. Thailand exported goods worth 3,300 million pounds to the UK, most of which were poultry, automobiles and parts, jewellery, and motorcycles and components. The value of imported goods from the UK was around 1,900 million pounds, mainly comprising machinery, electrical circuit boards, alcohol and beverages, and pharmaceutical products.

Investment

• In terms of investment, the Thailand Board of Investment (BOI) in 2024 approved 16 investment applications from British companies, totalling some 1.1 million pounds. Additionally, between 2018 and 2023, the BOI approved 120 British investment applications with a total value of 365 million pounds. The majority of these applications were in the digital industry.
  
  
• Over the years, British companies have invested in a broad range of sectors in Thailand, including energy, retail, financial services, aviation and automobiles and parts. These companies include: Boots; Unilever; Standard Chartered; Prudential; HSBC; BP-Castrol; GKN; Triumph; Senior Aerospace; GlaxoSmithKline (GSK); and Meyer.
  At the same time, major Thai corporations, such as Charoen Pokphand Foods PLC (CPF), Thai Union, Thai Beverage Group, King Power, PTT Exploration and Production PLC, and most recently the Central Group, have also established a strong presence in the UK.

Bilateral Economic Mechanisms

• The private sectors in both countries have long played a crucial role in strengthening bilateral economic relations. Providing an essential link between both sides has been the Thai-UK Business Leadership Council (TUBLC). The Council was established in 2016 and serves as a key mechanism to promote closer collaboration between both sides, helping also to identify major trade issues, while putting forward recommendations to improve the ease of doing business and enhancing Thai-UK economic partnership.
  
  
• More recently, the two countries have also established the Joint Economic and Trade Committee (JETCO) at the ministerial level to explore further opportunities and develop work plans to expand bilateral trade and investment relations and cooperation.
  
  
• The first JETCO meeting was hosted by the UK on 21 June 2022. Both sides agreed to prioritise six areas of collaboration, namely: (1) agriculture; (2) healthcare;
  (3) food and beverages; (4) digital; (5) trade and investment; and (6) financial services. Through these six sectors, Thailand and the UK agreed on a joint work plan to promote cooperation over the next 12-18 months, with the aim of increasing the volume of trade back to around 5.5 billion pounds annually. In addition, both sides would work towards an Enhanced Trade Partnership (ETP), which would lay the foundation for a Free Trade Agreement (FTA) between Thailand and the UK in the future.
  
  
• On 18 September 2024, Thailand and the UK signed the Memorandum of Understanding (MoU) for an Enhanced Trade Partnership (ETP) to boost trade and investment between Thailand and the UK. This marks the new UK government's first trade partnership agreement with a Southeast Asian country, reaffirming the commitment of both sides to collaborate in 20 priority areas, namely: (1) automotive; (2) digital; (3) education; (4) standards; (5) agriculture; food and drink; (6) investment;
  (7) technical barriers to trade; (8 ) healthcare; (9) customs; (10) competition, subsidies, and state-owned enterprises; (11) financial services; (12) multilateral engagement;
  (13) intellectual property; (14) procurement; (15) services; (16) trade remedies; (17) environment; (18) clean growth; (19) labour; and (20) tourism. The ETP will not only foster closer collaboration in areas where the UK has expertise but also facilitate trade and investment for businesses in both countries. This represents an important step toward potential free trade agreement negotiations between Thailand and the UK.
  
  
• The second JETCO meeting is expected to take place in 2025.