August 23, 2006

Thailand seeks to set chicken export quota to EU at 140,000 tonnes

Thailand would ask for an export quota of not less than 140,000 tonnes a year and minimise the impact of changes to EU tariffs on Thai poultry exports, its Agricultural Ministry announced.

A team of trade negotiators would be sent to Brussels to negotiate the deal, the Ministry announced.

Under the new system, the EU would set quotas for cooked chicken, salted chicken and turkey from Thailand by September. Exports falling within the quotas would be taxed at the existing rates, but exports beyond that level would be taxed at a rate of EUR 102 per 100 kilogrammes.

Thailand last year shipped 106,503 tonnes worth some EUR265.8 million of processed chicken to the EU, Thailand's second biggest buyer after Japan.

The EU banned raw chicken from Thailand because of fears of the deadly H5N1 bird flu virus, which was first detected in early 2004. The EU ban on raw chicken was extended until the end of next year just as Thailand was about to appeal for lifting of the ban after bird flu had not been detected in the country for months. The disease resurfaced in July.