September 2, 2005

EU temporarily cuts import tariffs on Thai shrimp

The EU recently announced that it would temporarily reduce import tariffs on Thai shrimp, following Thai appeals for aid in light of its tsunami-devastated shrimp industry.

According to the European Commission, the tariff would be reduced from 12 percent to 4.2 percent for fresh shrimps and from 20 percent to 7 percent for prepared shrimps. No quotas would be applied.

The EU stated that the temporary measure was implemented to satisfy its needs, as it was a major shrimp consumer.

Under the measure, Thai shrimps would be taxed at the same rate as under the new EU Generalised System of Trade Preferences (GSP) scheme to be implemented next year. GSP provided duty-free or reduced-duty access to foreign markets.

Thai shrimp producers were pleased with the announcement, saying shrimp exports to the EU were expected to rise to about 35,000 to 40,000 tonnes in 2005. Industry reports indicated this amount would represent about 15 to 20 percent of total Thai shrimp exports of 250,000 tonnes this year.