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Thai chicken export to benefit from Sino-Thai FTA: KRC

MCOT News, Thailand

Thai chicken export to benefit from Sino-Thai FTA: KRC

13 March 2006

BANGKOK, March 13 (TNA) - The export of Thai chicken and products will benefit from the opening of a free trade area between Thailand and China although the latter is becoming a remarkable rival, according to the Kasikorn Research Center.

The leading think tank said the export of Thai chicken and products to the Chinese market would benefit from the FTA pact in terms of import tariff cuts in processed chicken from 17 per cent to 15 per cent when it is put into effect and to zero in 2010.

However, KRC said China is Thailand’s remarkable rival for the chicken export since the chicken production in the country had rapidly increased in the past decade thanks to the production improvement and eradication of hygiene problems, particularly contamination in the production process.

It has enabled China to begin competing with Thailand in exporting chicken products to the latter’s main destinations such as Japan and Hong Kong and potential destinations namely South Korea, Middle East, and East Europe.

As well, local operators in the chicken business are worried about possible imports of chicken and products from China for repackaging and re-exporting would damage quality of Thai products in the future.

KRC projects China’s export of chicken products would be 470,000 tons this year, up 31 per cent from last year with Japan and Hong Kong becoming major destinations.