InfoQuest, (May 27, 2019) -- Mr. Adul Chotinisakorn, director general of the Department of Foreign Trade (DFT) of the Ministry of Commerce of Thailand, said that the DFT is keeping a close watch on the progress of Brexit, aiming to ensure that the interests of Thai enterprises will not be affected. Recently, the DFT has conducted negotiations with the EU and the UK to modify tariff-rate quotas (TRQs) for 31 products under WTO framework. The negotiations included the given quotas of tapioca products and tapioca starch from the EU. It is necessary to negotiate a new quota allocation with the EU and the UK after Brexit. The DFT, in accordance with the principle of safeguarding the nation's interests and securing more preferential rights, will push talks to gain higher quotas from the EU and the UK or at least maintain the existing quotas.
The EU's import quota of tapioca starch (HS Code 110814) from Thailand used to be 10,000 tons per year. The "in-quota" tariff was 66 euros per ton, while the "out-of-quota" tariff 166 euros per ton. However, Thailand actually exported more than 30,000 tons of tapioca starch to the EU market every year. It can be seen that the quota for Thailand granted by the EU failed to match the actual trade volume.
"The negotiations on the allocation of the new TRQ presented a golden chance for Thailand to get more appropriate TRQ of tapioca starch that match the actual trade volume with both the EU and the UK," said Mr. Adul.
In 2018, the tapioca starch (HS Code 110814) Thailand exported to the EU topped 36,287 tons worth 21.78 million U.S. dollars, up 13.60 percent and 33.62 percent respectively from 31,942 tons worth 16.3 million U.S. dollars in 2017. And the tapioca starch exported to UK totaled 6,643 tons worth 4.12 million U.S. dollars, a year-on-year growth of 34.09 percent and 46.10 percent respectively from 4,954 tons worth 2.82 million U.S. dollars in 2017.
Source: InfoQuest, by Kasamarporn Kittisamphan/ Rachada, translated by Xinhua Silk Road
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