FRIDAY, March 29, 2024
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Seafood export gains ‘next year’

Seafood export gains ‘next year’

THE benefits from the improved ranking in the United States’ Trafficking in Persons Report or the European Union decision to maintain its ‘yellow card’ would accrue from 2017 onwards, according to TMB Analytics.

TMB Bank’s economic centre believes that while Thailand’s ranking in the US TIP report went up from Tier 3 to Tier 2 Watch List, the EU would maintain its ‘yellow card’ on Thailand regarding the Kingdom’s measures to try to fight illegal, unreported and unregulated (IUU) fishing.
The EU is expected to announce the update later this year.
“Despite the actions, Thailand’s seafood exports to the US and EU would not see any expansion this year, given several lingering challenges which pressure exports to the two destinations,” it said.
In 2016, exports to the US market are expected to fall by 5 per cent year-on-year to US$1.2 billion, due to higher demand for produce from Latin American countries. Meanwhile, Thailand’s shrimp output has been dented by the EMS disease.
Exports to the EU are expected to fall by 24 per cent this year to $365 million, due to the EMS disease and internal economic challenges in the continent. Moreover, Thai products are priced higher than those coming from countries under the Generalised System of Preferences.
The bank acknowledged that while benefits are not immediate, Thailand’s labour-related strategies would become a major turning point for the seafood industry. All companies are required to apply international standards throughout their supply chain.
“This may be a painful period, but it could increase buyers’ confidence in Thai products and this would benefit Thailand in the long term,” it noted.
– The Nation

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