Historically, Thailand’s foreign policy has largely centered on strengthening ties within the Association of Southeast Asian Nations (ASEAN). However, over the past decade, Thailand has increasingly sought to diversify its economic partnerships, recognizing the limitations of ASEAN’s trade agreement framework and the potential for greater access to rapidly growing markets in the Americas. Peru, a nation rich in natural resources and strategically positioned on the Pacific coast, has emerged as a key focal point for this diversification. Peru’s accession to free trade agreements with Chile and Colombia in 2013 established a precedent for bilateral trade liberalization, and its growing economic clout within the Pacific Alliance—a trade bloc comprised of Chile, Colombia, Argentina, and Uruguay— has made it an attractive partner for Thailand.
The impetus for this intensified engagement is multi-faceted. Peru’s economy, fueled primarily by mining (copper, gold, silver), is experiencing robust growth, presenting Thailand with significant investment opportunities. Furthermore, the FTA negotiations, reportedly progressing swiftly according to informed sources within the Thai Ministry of Commerce, represent a crucial step in securing preferential access to a burgeoning market. Data released by the Peruvian National Institute of Statistics and Census indicates a 7.2% GDP growth rate in 2024, largely attributable to increased exports. This economic dynamism is attracting Thai investment in sectors ranging from agriculture (particularly processed foods and agricultural machinery) to infrastructure development. “Peru offers a compelling blend of resources and a proactive government eager to expand trade relations,” explained Dr. Amorn Chaisri, Senior Fellow at the Institute for Policy and Strategy, Bangkok. “Thailand’s decision to prioritize this partnership speaks to a broader recognition of the necessity to secure diversified supply chains and reduce reliance on traditional trade routes.”
The current negotiations for the FTA are expected to conclude by the end of 2025, contingent upon resolving outstanding technical issues related to intellectual property rights and agricultural standards. However, both sides acknowledge the complexities involved. “The biggest hurdle remains the differing regulatory frameworks surrounding agricultural exports,” stated a source within the Peruvian Ministry of Commerce. “Thailand’s stringent food safety standards, while commendable, require alignment with Peru’s regulatory procedures.” Beyond the FTA, Thailand and Peru are collaborating on joint projects in areas such as tourism promotion and technical assistance.
Looking ahead, a successful FTA would fundamentally reshape Thailand’s trade relationships. Short-term outcomes within the next six months are likely to see a surge in bilateral trade, with Peru becoming a significant source of raw materials and a growing destination for Thai manufactured goods. Long-term (5–10 years), the relationship could evolve into a critical component of a broader Southeast Asian-Pacific trade network, potentially influencing trade dynamics within the Asia-Pacific region. However, challenges remain. The FTA’s success will be inextricably linked to Peru’s ongoing economic stability, and potential fluctuations in global commodity prices could significantly impact trade flows. Furthermore, broader geopolitical tensions, particularly those involving China’s growing influence in the Pacific, could introduce uncertainty into the equation. “The Thailand-Peru partnership is a strategically important initiative for Thailand,” commented Professor Rajesh Kumar, a geopolitical analyst at Chulalongkorn University. “But it’s also a microcosm of a larger struggle for influence in the Indo-Pacific, and Thailand’s ability to maintain its strategic autonomy will be tested.”