Thailand Evaluates Trade Risks Amid Ongoing European Protests

The Department of International Trade Promotion (DITP) and Thailand's overseas trade promotion offices are closely monitoring the situation and evaluating potential impacts on international trade. The ministry aims to identify risks early, enabling Thai exporters to adjust business plans and prepare contingency measures to mitigate disruptions.

Demonstrations have occurred in France, Italy, Portugal, Albania, Spain, and Belgium, driven by various grievances such as rising living costs and housing difficulties, with some protests leading to clashes and safety concerns. The Commerce Ministry is particularly focused on potential industrial actions by labor unions that could disrupt transportation and economic activities.

Trade officials are assessing the implications of these developments on Thai trade and freight movements. They warn that prolonged or more extensive protests could diminish consumer purchasing power in affected regions, potentially reducing demand for certain Thai exports.

Transport disruptions are also a major concern. Any interference with air transport, road freight, or local distribution networks due to protests or strikes could result in longer delivery times and increased costs for exporters. However, Suphajee pointed out that the extent of the impact would vary depending on the severity and locations of the unrest.

The ministry will continue to collect information from its overseas offices and relevant organizations to evaluate risks and develop strategies for maintaining trade continuity.

In the first eight months of 2026, trade between Thailand and the European Union reached US$34.69 billion, marking a 17.13% increase year on year. Thai exports to the EU rose to US$21.06 billion, while imports grew to US$13.63 billion, resulting in a trade surplus of approximately US$7.43 billion. These figures underscore the importance of monitoring European developments to safeguard export opportunities and maintain Thai competitiveness.

The Commerce Ministry has advised exporters to stay informed about their markets and maintain communication with buyers and logistics providers. It is crucial for businesses to regularly check the status of shipments, especially those that may pass through areas affected by protests.

If transport routes are threatened, exporters should consider renegotiating delivery schedules. This is particularly vital for perishable goods and those with stringent delivery deadlines.

Additional recommendations for managing potential risks include:

- **Market Diversification**: Expand sales opportunities in ASEAN, South Asia, and the Middle East to lessen dependence on European markets.

- **Cargo Insurance**: Extend coverage to address losses caused by riots or property damage.

- **Currency Risk Management**: Review euro-denominated assets or explore forward contracts to mitigate exchange-rate risks amid potential euro fluctuations.

- **Alternative Transport Routes**: Explore bypassing certain ports if disruptions occur, possibly using ports in northern or southern Europe instead.

- **Inventory Management**: Relocate stock from high-risk areas to safer countries.

The ministry will continue to coordinate with trade promotion offices abroad to monitor evolving conditions and provide critical information to exporters, aiming to help them stick to delivery schedules and manage potential cost increases.