March 14, 2006

 

Thai shrimp exports up for EU, down for US

 

 

Thailand, the world's biggest shrimp exporter, is expecting increased shipments to the EU and lower volumes to the US.

 

EU measures favouring shrimp trading, especially the resumption of the GSP (General System of Preferences) is a boon to Thai shrimp exports, Somsak Paneetatyasai, President of the Thai Shrimp Association said on Monday.

 

Shrimp exports to the EU increased 46 per cent from 8,001 tonnes in 2004 to 11,686 tonnes last year.

 

In 2006 it is expected that the export volume could increase from 11,686 tonnes in 2005 to reach 30,000 tonnes, a 150 percent increase, according to Somsak.

 

Things do not look so rosy for the US market however: antidumping and bond measures are still dragging down exports to the United States and could mean a lower volume of shrimp exports to the US this year.

 

Shrimp exports to the US has been declining since November last year and lower production in the past six months meant exports to the United States will likely fall by 30 percent, Somsak said.

 

Normally, shrimp costs less during the summer, but low production in the first half of this year may result in a change in prices this year.

 

Meanwhile, Thai shrimpers have urged the government to press ahead with plans to file a complaint with the World Trade Organization (WTO) over US tariffs and bonds.

 

The United States imports nearly 90 percent of its shrimp and imposes an average 5.95 percent duty on Thai shrimp. To guarantee payment, Washington also requires shrimpers to pay for a bond equal to the total export value of the shrimp.

 

Thai shrimpers have long complained about the bond payment and have urged their government to file a trade complaint against the US with the WTO.

 

A complaint has already been prepared but was put on hold after Washington said it would revise its tariffs and remove the bond by mid-March.

 

In 2005, about 150,000 tonnes of Thai shrimp were shipped to the United States, Thailand's largest shrimp export market, up from 130,000 tonnes in 2004.

 

Thailand shipped a total of 280,000 tonnes of shrimp worth 70 billion baht (US$1.8 billion) overseas in 2005.