Thailand's shrimp exports will face higher tariffs in the EU starting next year, further complicating the country's efforts to fully recover from the devastating early mortality syndrome (EMS) epidemic.

Since it is no longer classified as a developing country, Thailand will lose its favoured country status in the EU from January next year.

In a study, the Thai Ministry of Commerce have found frozen shrimp as the least prepared among its many exports to cope with the ending of the EU tariff preferences.

The ministryhas been holding seminars around the country to help exporters prepare for the ending of EU preferential tariffs at the end of 2014.

Since 1971, the EU has had rules ensuring that exporters from developing countries pay lower duties on some or all of what they sell to the EU, under the Generalised System of Preferences (GSP) scheme.

But in October 2012, it adopted a new GSP pruning down the list of countries being given favoured status from 176 to 89, with the intention of focusing on the most in need.

Thailand has been among those removed from the new list. However, its two main Asean competitors in shrimp exports, Vietnam and Indonesia, will continue to enjoy EU favourable tariffs.

Stripped of its most favoured status, Thailand will start paying 12%, from the current 4.2%, tariff on raw shrimp entering the EU.

The new tariff regime, Thai commerce ministry officials say, will make Thailand's shrimp exports to the EU less competitive than those from Vietnam of Indonesia.

Until 2012, Thailand was the world's number one shrimp producer and exporter with annual output ranging from 500,000 to 640,000 tonnes. But following an EMS outbreak across the country, Thai shrimp production last year nosedived to 250,000 tonnes, down 54% from the previous year.

This year, production is seen dipping further to less than 200,000 tonnes.