Thai chicken exporters want higher EU quota

Thailand's processedchicken exports to the EU are already approaching that grouping's limit of 160,033 tonnes from the Kingdom.

Suthep Tirapipattanakul, executive vice president of the Betagro Group, the Kingdom's leading chickenexporter and an association member, said private exporters wanted the government to include increased chicken exports in negotiations for the FTA, because Thailand had a high potential to increase its exports of this product to the EU.

"Thai processed chicken exported to the EU has now almost met the quota limit. The government should seek ways to increase export growth under the FTA," he said.

The EU agreed to accept 160,033 tonnes of processed chicken from Thailand out of an Asean quota of 250,953 tonnes. Under the quota, the tariff is 8 per cent per tonne. For chicken exported outside the quota, the tariff is a steep 53 per cent.

The EU is the largest market for Thai chicken exports, accounting for 40 per cent of such exports from the Kingdom. Cooked chicken and other poultry sent to the EU grew 72.9 per cent to US$420.4 million (Bt14.37 billion) in the first seven months of the year.

Suthep also called on the EU to apply its 92,610tonne quota for salted chicken from Thailand to processed chicken, because the Kingdom cannot export that product to the EU.

The EU's ban on freshchicken imports, placed five years ago after a birdflu outbreak, includes salted chicken.

The tariff on salted chicken for inquota exports to the EU is 15.4 per cent. Its quotas and tariff rates for poultry products were announced last year, in accordance with World Trade Organisation regulations. The EU said its quotas were aimed at protecting its domestic manufacturers and preventing its markets from being flooded with cheap imports.