August 28, 2023, Deputy Government Spokesperson Rachada Dhanadirek disclosed that
caretaker Prime Minister and Defense Minister Gen. Prayut Chan-o-cha acknowledged the
feasibility study on Free Trade Agreement (FTA) between Thailand and the Pacific Alliance (PA).

According to the Deputy Government Spokesperson, the study, commissioned by Ministry of
Commerce’s Department of International Trade Negotiation, was conducted by King Mongkut’s
University of Technology North Bangkok (KMUTNB) to analyze impact and benefit of Thai-PA
FTA. The Pacific Alliance (PA) consists of 4 Latin American countries, namely, Chile, Peru,
Colombia, and Mexico, with a combined population of more than 225 million people, making up
roughly 36% of Latin American GDP. PA is positioned as world’s 8 th largest economy. The study
reveals that Thai-PA FTA would contribute to a 0.04% increase of the country’s GDP or approx.
USD200 million. Total trade value between Thailand and PA will also increase by 16.75%
(approx. USD1 billion). The Latin American trade bloc could be Thailand’s major source for iron
ore, copper and lithium, aqua fish products, and agro products, whereas Thai products
expected to enjoy the benefit of Thai-PA FTA are grains, plastic and plastic products, rubber and
rubber products, automobile and parts, and apparels. Thailand’s potential service sectors for PA
are tourism, hotels and restaurants, wholesale and retail, and construction.

In addition to the feasibility study, exchange of view between concerned agencies of the two
sides, i.e., Thai National Shippers' Council, and Thai-Mexican Chamber of Commerce, have been
carried out, and the implementation of Thai-PA FTA has been agreed upon to expand markets
for Thai product export and eliminate tax barrier. Mexico, in particular, is Thailand’s important
trade partner from Latin America and the Caribbeans. Trade activities between Thai and
Mexican private sectors have been organized on a regular basis by Ministry of Commerce’s
Department of International Trade Promotion. Potential Thai products exported to Mexico are
knockdown furniture and electrical appliances.

The Deputy Government Spokesperson added that the Government has placed importance on
FTA implementation for the benefit of the Thai people. Thai-PA FTA would well contribute to
trade and investment expansion in the Latin American region, generating more revenue, and
enhancing national competitiveness and global popularity of Thai products.