Thai-EU FTA Nears Finish as State Enterprise Chapter Closes

Thailand and the European Union closed negotiations on the state enterprise chapter of their proposed free trade agreement during the ninth round of talks in Brussels on June 25, according to Tibdee Wattanakul, director-general of the State Enterprise Policy Office.

The chapter requires state-owned enterprises engaged in commercial activities – buying or selling goods, providing services – to operate on a non-discriminatory basis and follow commercial considerations, much like private companies. Governments retain the flexibility to provide support during economic crises. State enterprises with annual commercial revenue below $200 million are exempt.

For Thai state enterprises in energy, transport, or utilities, the rules mean they can no longer favor domestic suppliers or set prices below cost without a commercial rationale, unless they fall under the revenue exemption. For European companies, the chapter reduces uncertainty around state-owned competitors and opens procurement opportunities in sectors where Thai state enterprises dominate.