Caretaker Commerce Minister Somkid Jatusripitak said yesterday that the fund would provide better cash-flow for private firms to hire lobbyists, who are part of a wider network that works closely with trade laws in the country's major trading partners.

The ministry also said it would set up a joint committee with Thai food exporters to look at what obstacles the country faced with regards to trade and exports, as Thailand has been hit by trade and non-trade barriers in the form of anti-dumping and countervailing duties.

The ministry said the fund should also encourage the country's export growth to reach the forecast of 15 per cent for this year.

Somkid met with the Thai Food Processors' Association and Thai Frozen Food Association yesterday to discuss the export situation in the food sector.

The associations forecast that food sector exports would grow by 15 per cent to Bt300 billion this year. Processed chicken is expected to generate Bt60 billion.

Somkid said that having lobbyists would allow exporters to be more up to date and better able to cope with trade obstacles as they arose.

"Exporters are forming teams to prepare management in order to smooth operations. They will also take responsibility in choosing lobbyists to solve trade problems with each country," said Somkid.

The plan will also see the ministry get together with tinned-tuna producers to develop the country's own tuna fishing fleet with the aim of strengthening competitiveness in the canned tuna products sector, of which Thailand is a major exporting country.

The Export and Import Bank of Thailand and Krung Thai Bank are expected to help fund the fleet project.

Somkid said that while he could not guarantee when the project would begin, tuna exports would soon see a boost from free-trade agreements.

Thailand is one of the world's major tinned-tuna exporters. However, it is not able to export tuna in the large volume required by certain markets due to problems concerning rules of origin.

The development of the fishing fleet will help Thailand increase exports, as the fleet will increase fishing efficiency, Somkid said.

Vilai Kiatsrichart, president of the Thai Food Processors' Association, said the processed food sector should reach its export target of Bt130 billion this year, which would be a growth of 14 per cent. However, exports only rose 4 per cent in the first half this year, she said.

"Exports were sluggish during the first half because our tuna and pineapple export prices were higher than market prices so buyers went elsewhere," she said.

However, as orders are forecast to increase in the second half, processed food exports should achieve their target, she said.

Petchanet Pratruangkrai

The Nation