Thailand and the Eurasian Economic Union (EAEU), which consists of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, are scheduled to sign a memorandum of understanding (MoU) on Monday to enhance trade and investment and pave the way for free trade agreement (FTA) talks.
Commerce Minister Sontirat Sontijirawong said Tigran Sargsyan, chairman of the Eurasian Economic Commission, will visit Thailand and have a courtesy call with Prime Minister Prayut Chan-o-cha during Nov 16-21. He is scheduled to witness the signing of the MoU between the Thai government and EAEU on Monday.
The MoU is to be signed by Mr Sontirat and Tatyana Valovaya, the commission's minister in charge of integration and macroeconomics.
The pact aims to eliminate trade and investment obstacles, building up cooperation on trade policies, energy, customs regulations, inspection standards, sanitary and phytosanitary standards, finance, transport, agriculture, intellectual property, consumer protection, digital economy, trade in services, investment, and government procurement.
"The Thai government will discuss with visiting commission members about the procedures to work together under the MoU and how to expand trade and investment opportunities in Eurasian countries, which are new markets," said Mr Sontirat. "It also offers the opportunity to discuss the possibility of a FTA with the EAEU."
The EAEU has a population of more than 180 million. The bloc's GDP in 2017 amounted to US$1.7 trillion (56.1 billion baht).
EAEU trade volume with non-EAEU countries is more than $500 billion per year. The EAEU has plenty of natural resources and modern technological prowess.
Last year trade volume between Thailand and EAEU grew 58.9% to $3.32 billion (110 billion baht). Thai exports accounted for $1.09 billion, and imports were $2.19 billion last year.
In the first nine months in 2018, two-way trade volume was up 26.6% to $2.79 billion. Thai exports contributed $942 million and imports were $1.85 billion.
Thailand's key exports to the region are automobiles and components, rubber products, jewellery and ornaments, canned and processed fruits, and engines. Thai imports from the EAEU include crude oil, fertiliser, pesticides, metal ores, metal slabs, steel and steel products, and plant products.
In 2017, EAEU investment in Thailand was worth $376 million, including two investment projects applying for Board of Investment privileges valued at 2.71 billion baht.
