Thailand’s regional trade strategy faces hurdles amid global uncertainty

Thailand is increasingly turning to regionalisation to secure its economic future, as geopolitical tensions and tariff disruptions continue to reshape the global economic landscape, according to Dr. Andrew Staples of GeoPol Asia.

Speaking during a seminar, hosted by the Hinrich Foundation and the National Press Foundation in Singapore, he said that, while there is a clear strategic push towards regional economic integration, particularly since the 1997 Asian Financial Crisis, tangible progress has been slow and fragmented.

With the Thai government prioritising new free trade agreements (FTAs), he underscored concerns over whether regional economic cooperation will truly eclipse the era of globalisation.

“The ASEAN Free Trade Agreement was meant to drive integration, but non-tariff barriers persist. Thailand wants one label, Vietnam another, Malaysia a third. These regulatory mismatches create friction within what should be a seamless trade bloc,” he noted.

Dr. Andrew Staples, Founder of GeoPol Asia

While intra-ASEAN trade has remained stagnant, at around 22–23% of total trade, Staples highlighted the structural limitations of regional cooperation, despite political commitments.

Although ASEAN summits continue to renew calls to eliminate trade barriers, he said that nationalist and protectionist policies still hinder deeper economic integration.

For Thailand, aiming to expand trade ties amid sluggish economic growth and global uncertainty, he emphasised that the stakes are high.

As the government accelerates FTA negotiations and seeks to boost inter-regional trade, through initiatives such as the Second Master Plan on ASEAN Connectivity (MPAC 2.0), he warned that the key challenge remains translating regional rhetoric into tangible economic outcomes.

Staples pointed out, though, that regionalisation is not entirely bleak, adding that countries such as Canada, which have been overly dependent on the United States, are doubling down on Indo-Pacific strategies.

“Despite all the noise, these countries are coming together with a shared interest in open, transparent, rules-based economies. This could form the basis of stronger inter-regional linkages through EU-ASEAN cooperation, or frameworks like the CPTPP,” he opined.

He noted that Thailand has the opportunity to lead ASEAN efforts to eliminate non-tariff barriers and position itself as a bridge between blocs. This, however, requires overcoming longstanding institutional bottlenecks and aligning national interests with broader regional goals.

By Franc Han Shih, Thai PBS World