"The EU's positive move is good news for Thai shrimp farms and exporters. They now cling their hopes to the government to help convince the European trade bloc to return the GSP to Thailand", said Mr. Somsak Paneetathayasai, an advisor of a fishery panel of the Thai Chamber of Commerce (TCC).

The positive move of the 15-nation European trade bloc followed recent lobbies of a Thai Trade Representative, Mr. Kantathir Suphamongkhon.

Mr. Kantathir visited many European countries recently to negotiate with authorities of the countries on the issue.

The European countries then asked Thailand to send detailed reports on how the country had been affected by the EU's withdrawal of the trade privilege for their considerations.

The EU has withdrawn the GSP on imports of frozen Thai shrimps and other Thai shrimp products since early 1999. Thai shrimp exporters had to face import tariffs of 12% for frozen shrimps and up to 20% for other shrimp products.

This has led to a slump in Thailand's exports of shrimps to the EU, from tens of thousands tons annually to only 5,100 tons. The country's shrimp farms and exporters suffered a loss of about Bt10 billion.

"If the EU returns the GSP to Thailand, exports of frozen Thai shrimps and other shrimp products will face the import tariffs of only 4.2% and 7% respectively. The rate is similar to other shrimp exporting countries such as Indonesia, Malaysia, and the Philippines. This is believed to help restore the country's shrimp exports to the previously high level to the EU market annually", Mr. Somsak projected.

Thailand used to export over 100,000 tons of shrimps to the EU, worth over Bt10 billion.

Source: eFeedLink - 10th September 2004