In the era of a new global order facing multidimensional risks and crises, \u201cpharmaceutical security\u201d is no longer merely a public health issue but has become a national security agenda with both economic and strategic dimensions. As negotiations on the Free Trade Agreement (FTA) between Thailand and the European Union (EU) continue to progress, the agreement will have direct implications for the structure of the healthcare system and the future development of the Thai pharmaceutical industry.<\/p>\n\n\n\n
Balancing innovation and access to medicines, proposals under the Thailand\u2013EU FTA framework focus on strengthening intellectual property protection standards, or TRIPS-plus standards, such as patent term extensions and pharmaceutical data exclusivity. From one perspective, these standards are designed to provide incentives for the research and development of innovative medicines, attract investment in clinical trials, and enable patients to gain faster access to innovative medicines.<\/p>\n\n\n\n
However, strengthening these standards may also extend the period of market exclusivity for originator medicines, affecting the timing of market entry for affordable generic medicines. This may result in higher pharmaceutical expenditure under public health insurance schemes and increased financial burdens on the public. Awareness of these two dimensions is therefore important in the negotiations to protect the pharmaceutical industry and the interests of the public.<\/p>\n\n\n\n
Enhancing the capabilities of the Thai pharmaceutical industry, the challenges arising from the FTA framework can serve as a catalyst for pharmaceutical manufacturers to adjust their business models. Reliance solely on the production of basic generic chemical medicines may not be sufficient to create a long-term competitive advantage. Thai manufacturers need to accelerate their transition toward the production of higher-value medicines, such as value-added generics, and prepare for the production of biosimilars.<\/p>\n\n\n\n
In addition, reducing tariff barriers on imports of high-quality active pharmaceutical ingredients (APIs) from Europe provides opportunities for Thai manufacturers to improve pharmaceutical formulations and reduce raw material costs. At the same time, upgrading manufacturing process standards to international levels will enhance Thailand\u2019s capacity to become a contract manufacturing organization (CMO) and to export pharmaceutical products to ASEAN and global markets.<\/p>\n\n\n\n
Preparing the healthcare system and the public, achieving sustainable pharmaceutical security requires preparedness at multiple levels. The government and regulatory authorities need to reform drug registration and approval processes to make them faster, more transparent, and more efficient in order to reduce the time to market for safe medicines. This should be undertaken in parallel with the use of internationally recognized legal mechanisms, such as the Bolar exception, to facilitate research and advance preparation for the production of generic medicines before the patents on originator medicines expire.<\/p>\n\n\n\n
At the same time, the healthcare system should accelerate the development of a centralized national pharmaceutical procurement system and health technology assessment (HTA) to enable effective price negotiation. At the public level, awareness of preventive health should be promoted to reduce the risks associated with non-communicable diseases (NCDs), alongside efforts to build public confidence in the quality of generic medicines that meet international standards. These measures will provide an important foundation for reducing the country\u2019s healthcare expenditure burden in the long term.<\/p>\n\n\n\n
Advance preparation based on comprehensive information, together with close cooperation among the government, private sector, and civil society, will be essential to transforming challenges into opportunities, enabling Thailand to achieve a sustainable balance between promoting trade and investment and maintaining pharmaceutical security.<\/p>\n\n\n\n
Author:
Mrs. Paveenuch Udommaneetanakit
Senior Researcher
International Institute for Trade and Development (ITD)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section\/World Beat
Volume: 39 Issue: 13226
Date: Wednesday, Aug. 12, 2026
Page: 12 (left)
Column: \u201cAsean Insight\u201d<\/p>\n","protected":false},"author":501,"featured_media":113827,"template":"","categories":[35,29],"tags":[583,1237,1628,1627,471],"class_list":["post-113826","itd-data-center","type-itd-data-center","status-publish","has-post-thumbnail","hentry","category-article-en","category-data-center-en","tag-eu","tag-fta-4","tag-health-policy-2","tag-pharmaceutical-security-2","tag-thailand"],"pp_force_visibility":null,"pp_subpost_visibility":null,"pp_inherited_force_visibility":null,"pp_inherited_subpost_visibility":null,"yoast_head":"\n