Issue 17

With the approach of the ASEAN Economic Community (AEC), 2015 could be a landmark year for Thai-EU trade negotiations. 

“Once you start thinking about growth,” said Nobel-prize-winning economist Robert Lucas, “it is hard to think about anything else.” Ensuring productivity and growth in Thailand could be achieved by international cooperation and in light of this, trade promotion organisations such as the Bangkok-based European Association for Business and Commerce (EABC) is more relevant than ever.

EABC’s aim is to increase European trade and investment in Thailand. It also seeks to use Thailand as a gateway to the rest of ASEAN for European businesses. Partly funded by the EU, the EABC also brings both legitimacy and high-level connections for Thai companies seeking to develop relationships with the world’s second largest economic bloc. EABC’s main focus is in working with small and medium-sized enterprises (SMEs).

Current EABC President, Rolf-Dieter Daniel, believes that Thailand remains an undoubtedly attractive place in which to invest.

“The resilience of Thailand’s economy in the face of global economic shocks has been based on the country’s three strong pillars of agriculture, manufacturing and services,” says the general manager of German stationery manufacturer Staedtler. “Thailand’s manufacturing sector has made significant gains in productivity, and agriculture has continued to be a stable contributor to the economy.”

In the coming year, 2015 Staedtler will celebrate its 25th anniversary. Daniel says that sales have increased year-on-year, and that now the company is the largest foreign supplier of writing equipment in Thailand. It has also established two manufacturing plants in the country to maintain market competitiveness.

“Next year our sales growth is expected to be double digit,” he says. “Since we are planning to expand production by almost doubling our capacity.”

The following year also sees the launch of the ASEAN Economic Community (AEC), which Daniel welcomes as a potential panacea to slowing growth. “With the idea of a single market and production base, businesses in ASEAN shall gain benefits from trade liberalisation, facilitation and promotion,” he says. “EABC [sees] this opportunity as an advantage for existing European firms who possibly receive similar AEC benefits.”

Keen to ensure the continued prosperity of its adopted home, the EABC is preparing a European Business Position Paper in Thailand to share knowledge and concerns with the European business community, as well as provide feedback to the Thai government.

Going into 2015, the EABC will continue its ongoing negotiations for an EU-Thailand Free Trade Agreement (FTA). As the FTA would not be seeking to create an entirely new trade relationship, but rather build upon an already strong relationship, Daniel sees negotiations as initiating “a virtuous cycle that builds strength on strength.”

Words by Yvonne Liang
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