Thai Union urges govt to pursue FTA with EU
THE NATION | August 25, 2009
Thai Union urges govt to pursue FTA with EU
By PETCHANET PRATRUANGKRAI
Thailand’s leading canned and seafood exporter, Thai Union Frozen Products, has urged the government to strengthen exporters’ competitiveness by going ahead with bilateral free-trade negotiations with the European Union.
Company president Thiraphong Chansiri said Thailand should move ahead on trade liberalisation with the EU to facilitate market access for Thai foods. So far, Thai foods are subjected to high import tariffs compared with other export rivals in the EU.
"Thai food enterprises have reaped the highest benefit from the FTA’s low tariff. The government should consider continuing bilateral trade talks with the EU under the Asean-EU FTA," he said.
Exports of Thai canned tuna to the EU is subject to 24-per-cent export tariff, while other export rivals such as the African, Caribbean and the Pacific Group of States (ACP) and Andean countries have enjoyed a zero per cent tariff rate.
Thiraphong said that if the government can negotiate for lower rates to halve the current import tariff, Thai exporters should be able to boost export share in the market.
He also called for the government to talk to EU countries about increasing market access for sardine and mackerel exports due to their high export potential overseas.
In addition, the company is expecting other bilateral trade pacts, including with Japan, to rapidly pave the way for higher export growth of agricultural and fishery products.
However, he called on the government to issue early warning about rising non-tariff barriers as it could hamper export growth of the Kingdom, despite having FTAs.
Nuntawan Sakuntanaga, director-general of the Trade Negotiations Department, said that talks with the EU under the Asean framework had been suspended due to varying levels of interest among Asean member states.
However, due to the lack of a clear policy to pursue bilateral talks, the department is waiting for the government’s mandate on further negotiations.
The EU strongly wants to press ahead with a bilateral free-trade pact with Thailand and some countries in Asean as it foresees high potential for market access.
