Thailand–Canada Free Trade Agreement (TCAFTA): Cabinet Approves Negotiating Framework

Introduction

Thailand’s Cabinet has approved the negotiating framework for the Thailand–Canada Free Trade Agreement (“TCAFTA”) and endorsed Thailand’s participation in the forthcoming negotiations with Canada. The Cabinet also acknowledged the TCAFTA reference paper and the composition of Thailand’s negotiating delegation. In addition, it authorized the Minister of Commerce, or an authorized representative, to launch the negotiations jointly with Canada through an announcement or joint statement.

Background

Thailand currently has 14 free trade agreements (“FTAs”) with 18 countries, covering approximately 60.9% of its total trade. As part of its strategy to strengthen economic stability and competitiveness, Thailand continues to expand its FTA network. In 2025, bilateral trade between Thailand and Canada reached approximately THB 128.9 billion, an increase of about THB 15.4 billion from 2024, with Thailand maintaining a substantial trade surplus. TCAFTA would be Thailand’s first FTA with a North American country.

Scope of the Negotiating Framework

The framework draws on those previously approved by the Cabinet for the ASEAN–Canada FTA and the Thailand–European Union FTA. The draft was discussed with public- and private-sector stakeholders and revised in light of comments from government agencies.

It covers 26 topics, including:

• Trade in goods
• Rules of origin
• Intellectual property
• Customs procedures and trade facilitation
• Sanitary and phytosanitary measures
• Trade in services
• Digital trade
• Investment

Domestic procedures are under way to enable the official launch of negotiations in October 2026.

Expected Impact

TCAFTA is expected to have an overall positive impact on Thailand’s trade in goods, trade in services and investment. It would also provide an opportunity to raise Thailand’s trade regulations and standards to a higher international level.

Key Takeaways

• The Cabinet approved the TCAFTA negotiating framework, Thailand’s participation in the talks and the structure of its delegation.
• The framework covers 26 topics, including trade in goods, rules of origin, intellectual property, services, digital trade and investment.
• TCAFTA is expected to enhance Thailand’s competitiveness and benefit trade and investment, while supporting the upgrading of its trade rules.
• Negotiations are expected to launch in October 2026, once domestic procedures are complete.

Author: Panisa Suwanmatajarn, Managing Partner.

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