Thailand sees EUDR compliance as a trade advantage for rubber exports to the EU
Thailand expects its low-risk status under the EU Deforestation Regulation to strengthen its position in the European rubber market. Thai rubber exports to the EU reached $1,881.21 million in 2025, with processed products accounting for 69.18% of the total.
Low-risk status reduces the compliance burden
Thailand is positioning the EU Deforestation Regulation as a competitive opportunity for its rubber industry, supported by a lower inspection rate than those applied to two major regional competitors. Siam Rath reported, citing Thailand’s Trade Policy and Strategy Office, that the regulation covers seven commodity groups: rubber, palm oil, coffee, cocoa, soy, cattle and wood, together with specified derived products.
Under the EUDR, operators placing relevant goods on the EU market or exporting them from the bloc must conduct due diligence. They must confirm that the products are deforestation-free and legally produced in the country of origin, and submit a due diligence statement through the EU information system. The requirements will apply to large and medium-sized operators from December 30, 2026, and to small and micro operators from June 30, 2027.
The European Commission’s risk classification, announced on May 22, 2025, placed 140 countries in the low-risk category, 50 at standard risk and four at high risk. Thailand was classified as low risk, giving importers sourcing Thai goods access to simplified due diligence and a 1% inspection rate. Indonesia and Malaysia were placed at standard risk, requiring full due diligence and facing a 3% inspection rate. Thai officials regard that difference as a potential cost and market-access advantage for the country’s rubber suppliers.
Processed rubber dominates shipments
ITC Trade Map data cited by Siam Rath show that Thailand held an average 20.3% share of the EU’s natural-rubber import value between 2021 and 2025. The country’s rubber and rubber-product exports to the bloc nevertheless moved with commodity prices and European industrial demand. Their value fell from $2,237.85 million in 2022 to $1,581.43 million in 2023, a decline of 29.3%, as high inflation and rising interest rates weakened purchasing power and industrial production in the EU.
Exports recovered by 18.35% to $1,871.62 million in 2024 and edged up another 0.51% to $1,881.21 million in 2025. Natural rubber accounted for $579.71 million of the 2025 total, while rubber products generated $1,301.50 million. Processed goods therefore represented 69.18% of shipments by value, compared with 30.82% for primary natural rubber.
Vehicle tyres were the largest processed category, accounting for 66.68% of rubber-product exports, while rubber gloves represented 20.18%. This product mix matters for compliance because Thai officials said processed-rubber manufacturers generally appear better prepared to meet traceability and related standards than the upstream natural-rubber segment.
Traceability gaps remain among smallholders
Boonyanuch Sriboonkaew of the Rubber Authority of Thailand said compliant rubber and rubber products can command higher prices than conventional material and may find opportunities beyond the EU in standards-focused markets such as Japan. However, Thailand still faces difficulties collecting plot-level data and documents from small farmers. Differences between mapping datasets used to identify plantation coordinates also create problems for industrial buyers.
Supadej Ongsakul of the Thai Rubber Association said the industry is developing traceability through three channels: platforms operated by European buyers, systems built by Thai companies and platforms supplied by third-party technology providers. Effective geolocation and due-diligence systems will be essential if exporters are to turn Thailand’s low-risk classification into lasting commercial gains.
Freight costs complicate the outlook
Compliance is not the only factor shaping trade. Conflict in the Middle East has raised freight costs to the EU and extended shipping times as route uncertainty complicates deliveries. At the same time, higher synthetic-rubber prices have supported global demand for natural rubber. For European importers, Thailand’s lower EUDR inspection rate offers a potential administrative benefit, but supplier readiness, shipment reliability and verifiable farm data will determine how much of that advantage reaches actual contracts.
