Thai shrimp exporters ask EU to defer import duty hike while they deal with EMS

News 10:07 22/07/2013 496
"We want the EU to consider extending such tax privileges for a certain period of time while Thailand is trying every way to defeat the disease," said Somsak Panitatyasai, president of the Thai Shrimp Association.

The association and 20 representatives from other groups submitted a letter to Antonio Berenguer, head of Trade Economic Affairs at the EU office in Bangkok, as the representative of EU Ambassador David Lipman, urging the office to extend tax privileges granted to Thailand under the Generalised System of Preferences (GSP). They argued that the Thai shrimp industry has been devastated by Early Mortality Syndrome (EMS).

To aid in the recovery of the Thai shrimp industry, they are dire need of stability in the EU market. While the Thai-EU FTA is under negotiation, Thai processed shrimp is scheduled to graduate from the GSP next January 1, when the import duty rises from 7 per cent to 12 per cent.

Thai processed shrimp and its GSP breaks are most vital to the survival of the country's shrimp industry. Not only will the extension of GSP support farmers and their families, it will also benefit EU retailers, food makers and consumers.

With EMS as the culprit since late last year, Thai shrimp production to date is down by 50 per cent. Shrimp production runs about 500,000-550,000 tonnes a year, with the peak at 640,000 tonnes in 2010. The forecast for this year is 250,000 tonnes at best.

The other associations include the Thai Marine Shrimp Farmer Association, Thai Eastern Shrimp Association and shrimp farmer clubs from Surat Thani, Chantaburi, Pattani, Krabi and Trang.

After the meeting with Berenguer, Somsak quoted him as saying that in his opinion the free trade talks between Thailand and the EU will be one of the ways to encourage Thai exports.

Tsunami

In 2004, EU restored the GSP for Thai shrimp to help farmers earn money after their farms were wiped out by the great tsunami.

However, the adverse consequences of the loss of tax perks to the livelihoods of Thai shrimp farmers and those in the whole chain involving 1.5 million people and their families are immeasurable.

"This is a shrimp tsunami if not worse than the real one."

The shortfall will disrupt businesses in the retail trade. Food makers and EU consumers, who have enjoyed for years the security of supply of this high nutritional seafood, will feel the pinch. 

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