Fixed price for corn exports
To avoid any extra import tariff charges, the Foreign Trade Department will soon fix a standard price for sweet corn as a guideline for exporters to set their export prices.
The measure aims to help Thai sweet-corn exporters avoid future problem because of rising non-tariff barriers, a senior department official said. The source said the government wanted to ensure that Thai sweet corn does not face higher tariff barriers to enter other markets. The move comes as Thai canned sweet-corn exports to the European Union is expected to face an anti-dumping levy of between 3.1 per cent and 12.9 per cent. The EU will announce its final decision regarding the anti-dumping charge for Thai canned sweet-corn exporters on July 2. Until now, Thai sweet corn to the EU market had been subjected to a 15-per-cent import tariff. The EU is the biggest export market for the product, accounting for 50 per cent of export volume. In 2005, Thailand's total volume of sweet-corn exports to the EU reached 42,000 tonnes, worth US$1.34 billion (Bt46.36 billion). The country achieved a record 44,000 tonnes, worth $1.4 billion, in 2004. However, the exports dropped to 36,000 tonnes, worth $1.21 billion, last year. The department has already urged all manufacturers and exporters to reply to a questionnaire about whether they agree with the measure. Most of those who have responded have agreed with the measure because they believe the market will be operated under a fair system. The official reaffirmed that the measure will not breach any World Trade Organisation (WTO) rules. Under the WTO rule, Thailand has an exception for setting the standard price. To maintain export competitiveness, the government official also encouraged Thai sweet-corn exporters to accept the "price undertaking" measure of the EU. The EU will propose a "price undertaking" measure for Thai sweet-corn exporters. The EU will set a standard price, and exporters cannot quote their selling price below that price. Under the price undertaking policy, the EU will also limit the volume of sweet-corn export based on the export quantity in 2005. Any oversupply to the market will face an anti-dumping duty. The source added that the limit on the volume of exports might hurt new sweet-corn exporters, because they have no previous export record.
Petchanet Pratruangkrai The Nation
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