Representatives of Thailand’s seafood industry are still gauging the impact of the United States’ move to suspend trade preferences for seafood products from the Southeast Asian nation.
In a company statement released 27 October, Thai Union said its business will not be impacted by the U.S. decision to rescind trade preferences for Thailand under its generalized system of preferences (GSP).
The statements from Thai Union and others came following an announcement by the U.S. Trade Representative (USTR) on 25 October that U.S. President Donald J. Trump is suspending USD 1.3 billion (EUR 1.17 billion) in trade preferences for Thailand under the GSP as the Southeast Asian nation has failed to adequately protect workers’ rights. The removal of GSP status for Thai seafood products will become effective 25 April, 2020.
“Due to longstanding worker rights issues in the seafood and shipping industries, GSP eligibility will be revoked for all seafood products from Thailand,” the USTR said in its announcement.
Those seafood products to be removed from GSP eligibility for Thailand included sole, jack and horse mackerel, hake, Alaskan pollock, blue whiting, tilapia, catfish, sea bream, carp, seabass, and crabmeat, among others, a list provided by the USTR showed. The list contains products for which the U.S. is a relatively important market for Thailand, but where Thailand accounts for a relatively small share of U.S. imports.
“At this time, I do not foresee this decision by USTR as having an impact on our business,” Thai Union CEO Thiraphong Chansiri said in a company statement.
None of the company’s seafood or pet food products exported to the U.S. from Thailand are currently covered by the GSP, Thai Union added.
Thai seafood trade groups also issued statements after the USTR announced its decision, saying it was too early to estimate the possible damage from the move, according to a report from the Bangkok Post on 26 October.
Poj Aramwattananont, chairman of the Thai Frozen Foods Association, said his group has not looked thoroughly into the U.S. suspension but had the impression that it would affect mainly fish and squid exports.
Ghanyapad Tantipipatpong, chairwoman of the Thai National Shippers’ Council, said the Thai private sector was confused by the U.S. announcement and its focus on labor issues in Thailand’s fishing industry. She said a six-month grace period before the move goes into effect will allow the local fishing industry to adjust and potentially find new markets.
Keerati Rushchano, acting director-general of the Thai Commerce Ministry’s Foreign Trade Department, said Thailand will try to negotiate with the U.S. before the suspension takes effect in April next year, the Bangkok Post reported.
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