Thailand Pushes EU Trade Deal to Lift Textile Exports 57%
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Thailand's textile industry is urging the government to accelerate the Thailand-EU Free Trade Agreement (FTA) to potentially boost exports by up to 57%. Arada Fuengthong, Director-General of the Department of Foreign Trade, Ministry of Commerce, said on October 22, 2026, she met with the new executive committee of the Thai Textile Industry Association for the 2026-2028 term to discuss proactive strategies and guidelines for utilizing Free Trade Agreements (FTAs) and the Thailand-EU FTA to enhance competitiveness and prepare Thai entrepreneurs seamlessly.
Negotiations for the Thailand-EU FTA are being accelerated by both parties, with the Thai government aiming to reach a conclusion within 2026. The agreement is expected to be a crucial springboard for upgrading Thailand's textile, garment, and downstream industries — involving over 800,000 stakeholders — to dramatically expand export shares to the EU market. It would also significantly stimulate domestic investment and employment. To seize this opportunity, the Department emphasizes and encourages the private sector to adapt quickly, particularly by increasing Local Value Content, which is key to strengthening supply chains and ensuring Thai goods can effectively utilize benefits under FTAs, especially the Thailand-EU FTA.
Arada noted that discussions with the Thai Textile Industry Association revealed Thailand's textile and garment exports in 2026 show signs of stabilizing at a healthy level, similar to last year's 5% growth, despite global geopolitical challenges. In the first eight months of this year, major markets' garment imports contracted: the U.S. market fell 7.1% (source: OTEXA, U.S. Department of Commerce) and the EU market dropped 3.8% (source: Eurostat).
The Association estimates the Thailand-EU FTA will be a positive driver pushing Thai garment export values to grow 20-57% within five years of enforcement. The Thai private sector is working proactively, preparing business matching with Germany's Apparel Sourcing Club to link Thai manufacturers into global brand supply chains such as Hugo Boss and Vaude. This is coupled with attracting foreign investment, notably from the Taiwan Textile Federation, which has expressed interest in investing in Thailand's upstream industries like yarn and high-quality functional fabrics, helping complete Thailand's production chain from upstream to downstream.
However, the Department of Foreign Trade, as the lead agency promoting trade benefits from FTAs, is committed to integrated collaboration with the private sector to equip and prepare Thai entrepreneurs to fully adapt and utilize FTAs, creating economic value added and driving Thai industry toward sustainable growth on the global stage.
