Thailand upset with EU over Thai shrimp exports

BANGKOK: -- Thailand is considering adopting trade retaliation measures

against the European Union (EU) in response to the EU’s decision to delay restoring its trade privilege on Thai shrimps.

The Council of EU Ministers earlier this week decided that the Generalised System of Preferences (GSP), which offers lower import tariffs on shrimp exports to Europe from Thailand and other developing countries, would be restored on 1 January 2006, while least developed nations would be granted the trade privilege from 1 July 2005.

Thailand had hoped that the EU would grant Thai shrimp exporters the GSP in July 2005 as part of its assistance to countries hit by the last December tsunami.

But there may still be hope for Thai shrimp exporters as the working group of the EU Council is reportedly preparing to propose other trade incentives to help tsunami-stricken countries, the Director-General of the Department of Foreign Trade, Rachane Potjanasuntorn, told TNA on Tuesday.

These could include an increase in special import quotas for Thai shrimps.

“It will take about a month for the outcome to emerge. We can only hope that the EU abides by its promises, as it has already defaulted once on its pledge to help countries suffering from the tsunami,” Mr. Rachane said.

Thailand intends to discuss the details with the EU to encourage the trade bloc --the country’s second largest export market – to extend the special import quota to other sectors, including beverages, plastic goods, rubber, shoes, glass, ceramic, electronic goods and jewellery.

"It is expected that the EU will announce the special assistance measure before the end of the year," said Mr. Rachane.

Thailand is considering possible trade retaliation measures, including possible import restrictions on European luxury goods, such as sport cars, wine, jewellery.

It may also seek the banks’ co-operation in restricting credit facilities for importers of European luxury goods, according to sources in the Commerce Ministry.

In 2004, Thailand imported more than 13 billion baht worth of European jewellery.

Imports from the 25-nation EU in the first quarter of this year have already hit four billion baht.

--TNA 2005-06-29

What?

I guess Mr. Rachane didn’t get the memo from good old Mr. Toxin back in January:

Thai PM says quake reconstruction affordable

By Amy Kazmin in Bangkok

Published: January 3 2005 11:24 | Last updated: January 3 2005 11:24

Thaksin Shinawatra, the Thai prime minister, on Monday declared that the country did not need foreign aid to help it recover from the tsunami disaster, and could afford to pay for its own relief and reconstruction with government spending and domestic donations.

So does Thailand need this trade deal because of the tsunami or are they just attempting to capitalize on the situation?