July 3, 2012

Thai shrimp exports to EU affected by lost privileges

Farmers and employees of related businesses are expected to be affected by the loss of trade privileges for Thailand's shrimp exports to the EU.

Somsak Paneetatyasa, president of the Thai Shrimp Association, said that the tariff on Thai shrimp imported by the EU under the GSP would rise from 4.2% to 12%, as the country would now have to pay the full rate.

The rate on cooked shrimp and shrimp cocktail would rise from 7 to 20%.

"The high import tariff will directly affect Thai shrimp exports, as our competitors such as Malaysia have already formed bilateral free-trade agreements with the EU to enjoy tariff-free access," said Somsak.

Somsak stressed that the government should find a way to strengthen the country's export competitiveness. He predicted the new import tariff rate would reduce the Thai share of the EU shrimp market from 20-25% to only 5%.

"We want to see the government holds talks with the EU to encourage it to lower the import tariff on Thai shrimp from the full charge," Somsak said.

During the first four months of this year, the country's shrimp exports dropped by 10% to 103,533 tonnes, and by 3% to US$865 million in value terms, the association reported.

The shrimp industry involves more than two million people. Without any assistance measures, they would be badly affected, the group said.