BANGKOK, Thailand — Thailand is facing a new era of trade with the European Union, where price and production costs are increasingly being matched by tougher demands for sustainability, transparency and traceability across the entire supply chain. Nanthaphong Jiralerdphong, director of the Trade Policy and Strategy Office (TPSO) under the Ministry of Commerce, said the EU is reshaping its trade governance from the sourcing of raw materials and manufacturing to imports, e-commerce, packaging and waste management. The changes create both opportunities and challenges for Thai exporters, particularly as European rules increasingly require businesses to demonstrate how products are made, where materials originate and how goods are packaged and disposed of.
At the upstream end of the supply chain, the EU has introduced measures including the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD). Another major measure is the EU Deforestation Regulation (EUDR). From December 30, 2026, the rules will apply to large and medium-sized operators, followed by small and micro enterprises from June 30, 2027. The regulation covers seven commodities — cattle, cocoa, coffee, oil palm, rubber, soy and wood — together with related processed products. Companies importing or exporting covered goods must conduct due diligence and submit a Due Diligence Statement (DDS) through the EU information system, demonstrating that products are legally produced and are not linked to deforestation. The EU is also tightening controls in the middle of the supply chain, particularly on the rapidly expanding e-commerce market.
European Commission data shows that the number of low-value parcels entering the EU jumped from about 1.4 billion in 2022 to almost 5.9 billion in 2025, more than quadrupling in three years.
The EU began imposing a flat €3 customs duty per item on July 1, 2026, covering goods valued at no more than €150 imported from outside the bloc that were previously exempt from customs duty.
From November 1, 2026, goods entering through e-commerce channels will also require a Product Identifier (PID) to improve traceability and help customs authorities manage risks.
At the downstream end, new requirements are extending into packaging. The Packaging and Packaging Waste Regulation (PPWR) began taking effect on August 12, 2026, covering products manufactured inside the EU as well as imports from third countries. The rules require packaging to be recyclable, reduce unnecessary packaging and restrict substances that could pose health risks. They include restrictions on PFAS in food-contact packaging, reflecting the EU’s push toward a circular economy and more efficient resource use. Nanthaphong said the changes could significantly affect Thai businesses in food and processed agriculture, electronics and electrical appliances, automobiles and parts, as well as companies selling through e-commerce platforms.
Thai businesses will need to upgrade standards throughout their supply chains, including raw-material sourcing, production, data systems, traceability and packaging. For Thai companies, particularly small and medium-sized enterprises, preparation will also require better documentation, certification and cost planning, including customs duties, taxes, transportation and other business expenses. The changes could nevertheless create opportunities for companies able to meet higher standards, differentiate their products and demonstrate sustainability to European buyers.
Thailand is also negotiating a Thailand-EU Free Trade Agreement, which could improve market access, reduce trade barriers and strengthen the competitiveness of Thai businesses over the longer term.
At the same time, TPSO warned Thailand to monitor the risk of trade diversion. Manufacturers in countries unable to meet tougher EU requirements could redirect lower-cost goods toward ASEAN markets, potentially increasing competition for Thai businesses, particularly through e-commerce.
Thailand therefore needs to strengthen product standards and business capabilities while improving oversight of imported goods, officials said. Nanthaphong said the EU’s changing trade rules reflect a broader shift in global competition toward standards, transparency and sustainability. For Thailand, he said, this could provide an opportunity to develop higher-value products, build confidence among international buyers and strengthen the country’s role in global supply chains.
The changes could also make Thailand more attractive to foreign investors seeking production bases that meet international sustainability standards. The EU remains a strategically important export market for Thailand and is the country’s fourth-largest trading partner after China, the United States and Japan. During the first six months of 2026, Thailand-EU trade was valued at US$25.37 billion, up 16.1% year on year. Thai exports to the EU reached US$15.46 billion, up 20%, while imports from the EU totaled US$9.90 billion, up 10.4%.Thailand recorded a US$5.56 billion trade surplus with the EU during the period.
