May 24, 2006

 

GSP revives Thai shrimp sales to the EU

 

 

Thai shrimp sales to the EU skyrocketed by 211 percent and totaled US$11.2 million in the first four months of this year as import-duty privileges under the generalised system of preferences (GSP) were reinstated.

 

Thailand was overtaken by Vietnam as the biggest shrimp exporter to Europe after a cut in the GSP in 1999.

 

Still, Thai shrimp exporters hope to expand their EU market share tenfold to take up 10 percent of the EU market in the next few years.

 

However, Thailand would have no lack of competitors. Traditional heavyweights such as Vietnam and India are hoping to cash in on the EU's appetite for shrimp, not to mention others like Bangladesh, China, Venezuela and other countries within the EU.

 

This year, Thailand is planning to jack up exports to the EU market to 30,000 tonnes way below Vietnam's expected 360,000 tonnes.

 

Total EU imports is expected to be 860,000 tonnes this year.

 

Don Pramuswinai, Thai ambassador to Belgium, said exporters should focus more on Eastern Europe, adding it would be very difficult for Thai shrimp exporters to reclaim their former EU market share due to intense competition.

 

He urged Thailand to diversify their products and try to add value to them. Since EU consumers prefer processed shrimp, exporters should serve a variety of shrimp products.

 

Thailand has three measures to ensure increased exports, said Chutima Bunyapraphasara, commercial adviser and expert on the EU.

 

Firstly, the Commerce Ministry has hired a lobbyist to safeguard the country's EU export benefits.

 

Second, a Thailand-EU Business Council consisting of Thai exporters and EU companies would be set up to foster closer cooperation.

 

Lastly, relations would be established with specific EU members to be used as distribution centres for Thai exports.