InfoQuest, (May 25, 2019) -- Over the past period of time, 13 free trade agreements (FTAs) signed between Thailand and 18 countries have played an active role in promoting Thailand's export of fishery products and seafood, making Thailand the world's second largest exporter of canned and processed seafood only next to China, according to Ms. Onmon Subthawitham, director-general of the Department of Trade Negotiations (DTN) underThai Ministry of Commerce.
So far, Thailand's FTA partners, including ASEAN, China, Australia, New Zealand, Chile, Peru and Hong Kong (China), have committed to binding their customs duties at zero for fishery products and processed seafood from Thailand. The other three countries, including Japan, South Korea and India, impose tariffs only on a part of Thai imports of fishery products and processed seafood. For example, Japan only imposes tariffs on whole fish, fresh fish meat and some frozen/refrigerated products, including salmons, tunas, trouts, frozen shrimps as well as most canned and processed seafood. South Korea levies tariffs on live fish, whole fish and fresh fish meat, and certain frozen/refrigerated products. Tunas, sardines, mackerels, dried anchovies, and processed seafood such as tunas and sardines are included in the tariff list. As for India, the country imposes tariffs on whole fish, fresh fish meat and some frozen/refrigerated products. The tariff lines covering different kinds of Thai products include Yellow-fin tunas, sardines and mackerels, fresh, frozen and refrigerated shrimps and crabs, canned tunas and shrimps as well as processed shrimp products.
Ms. Onmon added that in 2018 Thailand's exports of fishery products and seafood to all markets that have signed FTAs with Thailand eyed increases. Most notablely, exports to China surged by 484.19 percent. Other trading partners such as ASEAN, Australia, Chile, South Korea, New Zealand and Japan also saw increases to different degrees, rising by 178.29 percent, 127.33 percent, 127.33 percent, 105.48 percent, 85.36 percent and 18.48 percent, respectively. This is consistent with the data that in 2018 the products that Thai enterprises took advantage of the preferential tariffs for most time in exporting were fishery products and seafood. The preferential tariff privileges endowed on Thai enterprises are covered in ASEAN-Japan Comprehensive Economic Partnership (AJCEP), Japan–Thailand Economic Partnership Agreement (JTEPA), ASEAN-China Free Trade Agreement (ACFTA), ASEAN Free Trade Agreement (AFTA), Thailand-Australia Free Trade Agreement (TAFTA), Thailand-New Zealand Closer Economic Partnership (TNZCEP) and Thailand-Chile Free Trade Agreement (TCFTA).
The Director-general of the DTN further pointed out that as the demand of global consumers for aquatic products continues to climb, the market for fishery products and seafood has presented a sustained growth trend. In the first quarter of 2019, Thailand's total export of fishery products and seafood stood 1,329.9 million U.S. dollars, up 2.89 percent from the same period in 2018, of which the export value to FTA partners topped 590.4 million U.S. dollars. The markets where exports increased included China, Chile, Peru and India, up by 43.74 percent, 32.81 percent, 33.21 percent and 100 percent respectively. While the markets where exports experienced contraction were Japan, the United States and ASEAN, down by 1.73 percent, 9.42 percent and 33.46 percent respectively.
In the future, the DTN will continue to push trade partners to further open their fishery products and seafood markets to Thailand within the framework of different FTAs. One the one hand, the DTN will review the existing FTAs, such as those signed by Thailand with Japan, South Korea and India.And on the other hand, priority will be given to FTAs under negotiation, such as the Regional Comprehensive Economic Partnership (RCEP) and Thailand's FTAs with Turkey, Pakistan and Sri Lanka.
At the same time, in order to adapt to international rules and standards, Thai fishery enterprises should attach importance to developing and improve product quality and safety as well as fishing methods so as to boost the competitiveness of Thai seafood and make the country one of the world's important seafood producers and exporters.
Source: InfoQuest, by Phana / Kasamarporn / Rachada, translated by Xinhua Silk Road
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