Assessing the Impact of the Thailand-European Union Free Trade Agreement on Trade and Investment in Thailand

Abstract

This study investigated the role of the Generalized System of Preference (GSP) from the EU on Thai exports and the implications of an EU FTA on trade and investment in Thailand. The findings indicated that Thai exporters did not maximize the use of the GSP as their exports under the system amounted to 63% of GSP eligible goods. The OLS regressions failed to observe any significant role the GSP had on Thai exports. From international experience, fixed and random effects models suggested that signing an FTA was not a significant determinant of exports to the EU and obtaining investments from the EU.