The increased duty-free access will apply to Thai exports of canned tuna, sardines and rice. The EU will provide additional quotas of 1,200 tonnes for white rice, 31,788 tonnes for broken rice, 1,816 tonnes for tuna and 1,140 tonnes for sardines.

The agreement also foresees the EU opening annual duty-free quotas for paddy rice (7 tonnes), husked rice (1,634 tonnes), semi- or wholly milled rice (25,516 tonnes) and broken rice (31,788 tonnes).

These will be open on a first-come-first-served basis to exporters worldwide. Currently, Thai exports of canned tuna to the EU are subject to a tariff of 12.5 per cent for a quota of 13,900 tonnes. When exports exceed this amount, the tariff becomes 24 per cent.

Exports of paddy rice and unpolished rice that exceed the EU's quota limitations are subjected to 15 per cent and 25 per cent tariffs, respectively.

Trade Negotiations Department director-general Apiradi Tantraporn said the EU would implement the new tariff conditions before April 15. Talks about compensation began in 2004, when it was realised that EU membership would effectively increase tariff charges made by new EU members.

Last year, Thailand exported goods worth Bt571 billion to the EU and imported goods worth Bt421 billion from it.

The European Commission's delegation head in Bangkok, Friedrich Hamburger, said the new tariff rate and additional quota were for compensating Thailand for exports lost over the past two years.

"The additional duty-free access for Thai exports to the EU has no time limit," he said. "This shows that the relationship between Thailand and the EU is working well."

The EU office in Bangkok said the measures would be implemented before July. Hamburger said that in most circumstances, EU enlargement since 2004 had decreased import tariffs from 9 per cent to 4 per cent.

However, some products exported from Thailand lost this benefit, because the tariffs of new members were lower before joining.

Petchanet Pratruangkrai

The Nation