Govt henpecks EU on its chicken quota
Thai delegates are negotiating with European Union officials in Geneva for a special import quota that takes into account annual 25-per-cent growth in chicken exports under a World Trade Organisation agreement.
Weerachai Wiramethikul, minister for the Prime Minister's Office, said that Thailand was seeking a compromise on the EU's chicken-import tariff. The negotiations are aimed at ensuring that export terms are fair for the Kingdom, after the EU announced the implementation of WTO regulations to protect its manufacturers from cheap imports, he said. Thailand asked for an annual EU import quota of 200,000 to 300,000 tonnes (that would increase 25 per cent a year). Also, Thai officials and the private sector want the EU to bring down tariffs. "The government has ambitions to convince the European Union's trade commissioner, Peter Mandelson, and EU delegates to offer better terms for Thai chicken exports," Weerachai said, after a meeting with Mandelson. EU implemented a new quota system for Thai chicken last month which increased import duties on salted chicken, cooked chicken and turkey. Poultry imported within the quota is subject to rates of 15.4, 10.9, 8.5 per cent, respectively. But shipments above and beyond the quota will be subject to tariffs that are 53 per cent higher - or ¤102 (Bt4,914) per 100 kg. The EU said the tariff hike was needed to protect the poultry industry. Conversely Thai officials argue that limitations on chicken exports would put people out of work and deal a heavy blow to the Kingdom's feed-meal industry. Weerachai said the EU considered export statistics of three years ago when deciding to raise tariffs. This was unfair because Thailand started exporting processed chicken two years ago. "The application of three years' of export statistics is unfair because it does not reflect real export figures," Weerachai said. He said the industry expected Thailand's chicken exports to the EU to grow 25-30 per cent a year. The Commerce Ministry and private exporters predict that Thailand's chicken exports will fall at least Bt50 billion in the next three years if the EU keeps its new import quote and tariffs in place. Thailand exported 67,555 tonnes of chicken worth Bt7.76 billion to the EU in the first seven months this year. Chayanon Kittayachaweng, senior vice-president of the Betagro Group, one of the country's largest chicken exporters, said exporters were hoping the EU would consider a higher quota for Thailand. Without it export volume may drop. The EU market is the second-largest market for Thai chicken exports, behind only Japan.
Petchanet Pratruangkrai The Nation
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