British Chamber urges Thailand to fast-track a UK free trade deal as EU and US agreements advance, warning delays could disadvantage exporters and investors and calling for reforms to boost trade, streamline approvals and ensure competitive parity.
British business leaders in Bangkok are pushing Thailand to fast-track a free trade deal with the United Kingdom. The call comes as Thailand finalises a detailed trade framework with the United States, a direct result of US President Donald Trump’s reciprocal tariffs launched in April. At the same time, Thailand is on the verge of signing a long-awaited free trade pact with the European Union. UK businesses are demanding a deal comparable to the EU’s terms and are pressing for changes to the Thailand Foreign Business Act, which they say restricts commerce and investment between the two countries.
The British Chamber of Commerce Thailand (BCCT) has urged the Thai government to accelerate negotiations on a free trade agreement with the United Kingdom. Officials warned that delays could disadvantage both British and Thai exporters once Thailand’s deal with the European Union takes effect in 2026.
BCCT President Pinyapa Somphong said the chamber wants the UK agreement to provide tariff and regulatory benefits comparable to those offered to the EU. She emphasised that this would ensure fair competition for businesses on both sides.
“The value of trade between Thailand and the UK has grown substantially. Therefore, we hope the new Thai government will move quickly to resume negotiations,” Somphong told Prachachat Business.
BCCT urges Thailand to accelerate UK trade talks to match EU benefits and protect exporters in 2026
Discussions between the UK and Thailand started under the Joint Economic and Trade Committee (JETCO) framework. This led to an Enhanced Trade Partnership (ETP) signed in 2024. However, talks have slowed following global tariff shifts triggered by U.S. policy changes earlier this year.
Meanwhile, the UK is pursuing multiple trade agreements. Negotiations with Indonesia are expected to conclude in early 2026, while talks with India remain ongoing. Consequently, Thai officials are concerned that pending EU trade arrangements could tilt trade toward European markets if UK tariffs stay higher.
BCCT represents more than 560 member companies. Members span sectors such as education, energy, retail, and finance. Founded in 1946, it is Thailand’s oldest foreign chamber of commerce. The chamber supports inbound and outbound investment and hosts events to promote trade and policy dialogue.
Somphong said both economies face headwinds in 2025. Thailand focuses on stimulating domestic consumption and tourism, while the UK prioritises domestic business recovery. She expects investor confidence to improve in 2026 as policies under the new Thai administration become clearer.
UK trade talks slowed by global tariffs as Thailand and UK face economic headwinds in 2025 and 2026
The chamber also raised concerns about regulatory barriers. It cited outdated and overlapping rules as ongoing deterrents to foreign investors. Specifically, the Foreign Business Act’s Annex 3 remains a major obstacle.
“If redundant laws are reduced, it will be easier for foreign investors to do business in Thailand,” Somphong said. She added that Vietnam has moved faster in streamlining investment procedures, giving foreign investors quicker access to local markets.
The BCCT urged Thailand to simplify approvals and reduce bureaucratic overlap between the Board of Investment and other agencies. Faster, more cost-efficient approvals could attract greater foreign capital, according to officials.
“Cutting red tape will attract more foreign capital and benefit Thai consumers through competition, innovation, and quality,” Somphong added.
BCCT calls for reform and streamlined approvals to boost foreign investment and reduce red tape
BCCT officials met with representatives of the Thai Chamber of Commerce – Board of Trade of Thailand (TCC-BOT) on October 31, 2025. The meeting explored pathways for deeper trade, investment, and partnership between the UK and Thailand.
Officials highlighted that maintaining a competitive UK-Thai trade environment is critical. They warned that without swift negotiations, the Thailand–EU FTA could shift trade toward Europe. This could leave UK exporters facing higher tariffs and stricter regulatory barriers.
The Enhanced Trade Partnership, signed in 2024, created a framework for cooperation on goods, services, and investment. However, BCCT officials said further negotiations are needed to reach a full free trade agreement. They emphasised that parity with EU terms remains a priority.
The chamber noted that trade and investment sectors such as education, energy, retail, and finance could gain from streamlined procedures. Regulatory clarity and faster approvals were described as critical for investor decision-making.
BCCT emphasises urgency for UK-Thai negotiations to maintain EU trade parity and improve efficiency
Officials also pointed out that global tariff shifts and U.S. policy changes have slowed progress in bilateral talks. Nevertheless, the chamber remains optimistic that UK negotiations can resume and reach an agreement before the EU FTA takes effect.
Somphong stressed that timing is crucial. A delayed UK deal could disadvantage Thai exporters, especially in sectors benefiting from EU trade preferences.
The chamber plans to continue engagement with both UK and Thai authorities. Its goal is a trade agreement aligned with international standards that protects market access and ensures fair competition.
BCCT representatives also intend to collaborate closely with private sector partners to monitor trade and investment conditions. They emphasised transparency and regulatory reform as key priorities for 2026.
BCCT highlights need for continued engagement and timely UK trade deal to protect exporters and markets
By aligning UK-Thai trade rules with EU standards, officials said both countries can safeguard market access. They also believe this will maintain competitive conditions for exporters and investors.
BCCT highlighted that without immediate progress, the EU FTA could give European competitors an advantage. Tariff differences and regulatory gaps could shift trade flows in Europe’s favour.
The chamber noted that the UK has a clear strategy of expanding trade through multiple FTAs. For Thailand, parallel progress is necessary to prevent market distortions and preserve competitiveness.
Somphong said Thailand’s pending EU agreement may attract additional investment toward European markets. Consequently, rapid UK-Thai negotiations are essential to maintain balance.
Aligning UK-Thai trade with EU vital to preserve market access and prevent competitive disadvantages
The chamber also recommended that Thailand reduce bureaucratic overlap between the Board of Investment and other agencies. Streamlined approval processes, they said, would make Thailand more attractive to foreign investors.
BCCT officials underscored that outdated legislation, including Annex 3 of the Foreign Business Act, remains a barrier. Removing such obstacles would facilitate smoother market entry and trading operations.
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Finally, BCCT stressed the importance of continued dialogue between the UK and Thai governments. It said regular engagement will help secure a comprehensive agreement before the Thailand–EU FTA becomes effective.
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