Thailand is set to take its trade dispute with Malaysia to international forums, raising the latter's recent suspension of imports of five Thai shrimp species during discussions at the World Trade Organization (WTO) and the Association of Southeast Asian Nations (ASEAN).
The Thai government’s measures are in response to actions by Malaysia, which announced it had suspended imports of five Thai shrimp species and imposed strict testing mandates on sea bass from Thailand starting 1 June. The Nation reported 7 June, citing Thai Deputy Prime Minister and Commerce Minister Suphajee Suthumpun, that the government is moving on several fronts to address the mandates.
Thai officials claim they received a formal notification about the suspension from Malaysia authorities on 28 May, three days before the ban took effect on 1 June, leaving virtually no window for bilateral clarifications.
The ongoing trade standoff between the two ASEAN members is related to a prior dispute regarding sea bass. Bangkok previously intensified checks on Malaysian sea bass imports after authorities in the country claimed they found trace amounts of chemical and antibiotic residues. Malaysia retaliated by demanding Certificates of Analysis (CoA) for incoming Thai sea bass shipments. Following the friction over these checks, their dispute expanded significantly as Malaysia enacted its comprehensive ban on the five Thai shrimp species effective 1 June.
Now, the Malaysia Office of Commercial Affairs has been asked to monitor the situation on the ground, and Thai agricultural and food safety regulators are preparing for urgent discussions with their Malaysian counterparts.
Alongside bilateral negotiations, Suthumpun said her country is equipped to escalate the dispute via multilateral avenues, including ASEAN and the WTO.
To minimize the immediate economic shock, regional and overseas commercial agencies under Thailand’s Commerce Ministry have been ordered to execute a 13-point contingency plan aimed at finding new buyers for at least 400 metric tons (MT) of Thai shrimp each month. Ministry statistics indicate that so far this year, Thailand exported 300 to 400 MT of shrimp per month to its southern neighbor, bringing in around THB 44 million (USD 1.34 million, EUR 1.16 million).
To fill this vacuum, the Department of International Trade Promotion will market Thai seafood at global trade expos and match-making events, The Nation reported. These include upcoming trade fairs in China, alongside specialized online networking sessions and promotion at the SIAL food exhibition in Paris, France, later this year.
On the domestic front, the Thai Department of Internal Trade aims to boost local consumption via the “Aroi Rim Lay” seafood festival in Phuket. Authorities are also partnering with retail chains to divert shrimp stocks into major tourism provinces including Phuket, Krabi, and Trang. Direct purchasing hubs will operate in key farming provinces like Songkhla, Nakhon Si Thammarat, Surat Thani, and Chachoengsao to connect aquaculture farmers directly with buyers, exporters, and processors.
Cross-border commerce events scheduled for 19 to 22 June in Chanthaburi and 9 to 12 July in Sa Kaeo are also expected to help distribute more volumes.
