Garment and textile ranks among one of Thailand's key industries, but it also faces challenges from competition, particularly from Vietnam. The EU-Vietnam Free Trade Agreement (FTA) has recently concluded and took effect on August 1st. Both sides agreed to reduce tariffs to zero on over 99% of imports from both countries for the period of 10 years. Textile and garment products are among Vietnam's exports to the EU that are immediately exempt from tariffs.

In the case of Thailand, the Department of Trade Negotiations (DTN) and the Thai team recently participated in the 7th Thailand-EU FTA negotiations in Brussels, Belgium, from September 29 to October 3, 2025, and good progress was reported as follows:

• Capital Movement: Concluding agreements that will facilitate cross-border investment flows.
• Financial Services: Establishing regulations to promote transparency and stability within the financial sector.

Additionally, progress was also reported on mutual market access, covering trade in goods, trade in services, investment, and government procurement. However, there are common grounds on major outstanding issues that both sides still need to finalize which include the level of market opening for goods and services, government procurement, agricultural product standards, intellectual property protection, and digital trade.

Apparently, this progress is a great step forward before further discussion by both sides during the meeting to push ahead and prepare for future rounds of negotiations. A successful FTA agreement with the European Union would significantly benefit Thailand's exports as well as the textile and garment sector.

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