🗓️ Monday, November 10, 2025
📍 Thailand

Thailand’s FTA-Driven Export Growth Surges Past $60 Billion in 2025

Thailand’s export engine is firing up in 2025. Between January and August, exports under Free Trade Agreements (FTAs) reached US$60.25 billion, marking an 8.4% year-on-year increase, according to the Ministry of Commerce. The Free Trade Agreement utilization rate climbed to 80.71%, showing Thai exporters’ growing ability to capitalize on tariff benefits even amid global uncertainty.

This surge comes as global trade dynamics shift sharply. Following renewed U.S. tariff hikes under President Trump’s second administration, Thai exporters faced higher barriers selling to the United States. In response, Thailand — together with its ASEAN partners — strengthened regional trade cooperation, relying more heavily on existing free-trade pacts like the ASEAN Trade in Goods Agreement (ATIGA) and the Regional Comprehensive Economic Partnership (RCEP). These agreements helped offset U.S. tariff pressure by lowering duties within Asia, driving new export momentum toward regional markets.

Ironically, Trump’s tougher U.S. trade stance has done what decades of diplomacy couldn’t — push Asia’s economies to unite through trade, strengthening regional supply chains and collective resilience across ASEAN and its partners.

Key Markets and Top Export Products

ASEAN emerged as Thailand’s largest export destination, accounting for approximately US$21.1 billion in FTA-backed trade. Other major markets include China, India, Japan, and Australia. Thanks to reduced tariffs, several key products saw strong demand across regions:

• Fresh durian — booming exports to China
• Platinum and jewelry — surging demand in India
• Commercial vehicles, synthetic rubber, and processed chicken — strong growth in industrial exports

Government Initiatives and Business Readiness

The Department of Foreign Trade (DFT) is taking proactive steps to strengthen Thailand’s trade capabilities. More than 1,200 entrepreneurs across the country have been trained to effectively leverage FTA privileges, ensuring small and medium-sized businesses benefit from expanding trade opportunities.

In addition, the Thai government is accelerating negotiations for new trade agreements with Europe and South Korea, aimed at broadening market access and enhancing long-term export competitiveness.

Why This Matters

The high FTA utilization rate signals a clear advantage: Thai exporters are not just expanding trade volumes but also lowering costs through preferential tariffs. This gives them a stronger foothold in regional and global markets, especially at a time when Western markets have become more protectionist.

The blend of agricultural and industrial exports—ranging from fruit and poultry to vehicles and metals—also suggests Thailand’s export base is diversifying. This balance could help cushion the economy against external shocks.

Challenges and Outlook

Despite the upbeat performance, challenges remain. Global economic volatility, U.S. tariff risks, and currency fluctuations could weigh on export momentum. Additionally, economists note that much of Thailand’s export value still comes from low- to mid-value-added products, limiting broader GDP impact.

Looking ahead, Thailand’s next phase of growth depends on upgrading its value chains and securing new trade deals that unlock higher-value markets. If successful, these moves could help Thailand sustain export growth and strengthen its position as a regional trade leader.

Published: 10th November 2025
Thai Calendar: 10th November 2568