This study investigated the role of the Generalized System of Preference (GSP) from the EU on Thai exports and
the implications of an EU FTA on trade and investment in Thailand. The findings indicated that Thai exporters did not
maximize the use of the GSP as their exports under the system amounted to 63% of GSP eligible goods. The OLS
regressions failed to observe any significant role the GSP had on Thai exports. From international experience, fixed
and random effects models suggested that signing an FTA was not a significant determinant of exports to the EU and
obtaining investments from the EU.