Thai-Peru pact updated by year-end

The Commerce Ministry wants to finalise the upgraded free trade agreement (FTA) between Thailand and Peru by the end of this year.

On Monday, Commerce Minister Suphajee Suthumpun met with Cecilia Zunilda Galarreta Bazán, Peru's ambassador to Thailand, to discuss enhancing economic, trade and investment collaboration between the two nations.

She said both sides are committed to expediting the negotiations for the upgraded FTA, aiming to conclude significant details by year-end.

Mrs Suphajee said modernising the existing FTA, which has been effective for more than 20 years, will unlock new trade and investment opportunities for entrepreneurs in sectors such as agricultural products, processed food, automotive, machinery and the creative industry.

The upgraded agreement is expected to bolster supply chain connections and enhance the movement of goods between Asia and South America.

The ambassador noted Peru's readiness for foreign investment, citing the opening of Chancay Port in November 2024, which is expected to become a logistics hub along the Pacific Ocean for South America, supporting increased trade between Asia and South America.

Ms Bazán said this development will facilitate Thai entrepreneurs' market expansion into South America.

Both sides have agreed to extend their collaborations through trade and investment promotion activities, which include participation in major international fairs in Thailand such as Bangkok Gems & Jewelry, Thaifex-Anuga Asia, Thaifex-Horec Asia and other business matching activities.

Furthermore, Mrs Suphajee said Thailand intends to promote tourism, culture, food and fashion, aiming to create closer ties between people of both countries.

From January to August, bilateral trade reached US$362 million, with Thailand's exports to Peru totalling $276 million.

Key exports are automotive, peripherals and auto parts; canned seafood and processed seafood; and washing machines and parts.

Imports were valued at $86.3 million, with key products including fresh, chilled, frozen, processed and semi-finished seafood; metal ore and scrap metal; and vegetable and fruit products.

Source: Bangkok Post