December 22, 2004

Thai Shrimp Exports May Rise In 2005

Thailand's shrimp exports may rise by 20% in 2005 from this year due to lower US import tariffs, according to a trade group. Thailand is the world's biggest shrimp exporter.

Exports may rise to about 270,000 tonnes from an estimated 225,000 tonnes in 2004, said Somsak Paneetatyasai, president of the Thai Shrimp Association, in a telephone interview.

The US Commerce Department on Monday lowered tariffs on shrimp imports from Thailand, India, Ecuador and Brazil. Thailand, the largest exporter of shrimp to the US, faces average duties of as much as 6 percent, down from a 10.3 percent preliminary tariff proposed in July.

"With the current tariff rate, Thailand's shrimp products have become very competitive compared with China, Vietnam and other countries," Somsak said. "The ruling on the tariffs will also encourage US buyers to resume their orders after an antidumping probe forced them to pause imports."

Thailand's overseas shrimp shipments in the first 10 months fell 2.3 percent to 189,000 tons as US investigations on shrimp dumping from Thailand and other countries temporarily halted imports by US customers, the Ministry of Commerce said in a faxed statement yesterday.

The export value of shrimp shipments fell 13 percent to 53 billion baht as falling demand from the US lowered prices, it said.

The US is the biggest market for shrimp exports, buying 53 percent of total shipments in the first 10 months, the ministry said.

The US Commerce Department in July lowered duties for exporters in Ecuador to 3.3 percent from 7.3 percent; India 9.5 percent from 14.2 percent; and Brazil 10.4 percent from 36.9 percent.