Little effect from slavery accusations on fish-product exports so far: Thai ministry

[webfact]

Little effect from slavery accusations on fish-product exports so far: ministry
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- THAILAND is still shipping seafood to the United States and Europe as normal despite the recent accusations of slave labour, according to the Commerce Ministry's survey of trading partners and Thai exporters.

"Importers are still ordering Thai fishery products as usual. Exports to the US and the European Union should not be affected by the problem," Srirat Rastapana, permanent secretary of the Commerce Ministry, said yesterday.

However, the Thai fishery industry needs to fix its image soon, as it could make sales abroad difficult and factor into consumers' decision-making in the future, analysts warn.

Thai trade officials in the US and EU markets have reported that Thai shipments to the US have not yet slowed down after Washington downgraded Thailand in its human-trafficking report because most importers and consumers still have high confidence in Thai fishery firms, which have done business with them for many years.

Japan is the largest market for Thai fishery exports so far this year, taking 27.1 per cent of total exports by value. In the first four months, the US accounted for 17.1 per cent, the EU for 13 per cent, mainland China 6.1 per cent, Vietnam 5.2 per cent, South Korea 5.1 per cent, Hong Kong 3.9 per cent and Canada 2.8 per cent.

The labour issue just recently popped up. The Commerce Ministry will closely monitor the impact in the long run as initially it has only had a psychological impact on customers. The government and fishery-related industries need to prove to the public urgently that Thailand has high concern for labour problems and strongly opposes forced labour, Srirat said.

Fishery exports this year should grow as normal, except for only shrimp exports, which will decline as the disease outbreak in hatcheries has not been clearly solved.

Seafood exports, including shrimp, dropped 12.2 per cent in the first four months to US$1.99 billion (Bt64.6 billion). Seafood exports make up 2.7 per cent of the country's total export value.

Poj Aramwattananont, president of the Thai Frozen Foods Association, said seafood traders had tried to sell products to various markets and reduce the dependency on giant markets like the US and EU for many years, as emerging economies proliferate. Sales to the US and EU would not affect Thai seafood growth.

However, Thai traders are still worried about their buyers and will conduct a roadshow to meet them to create understanding of labour issues.

Chanintr Chalisarapong, president of the Thai Tuna Industry Association, said tuna exports to the US and EU had dropped during the past three years since the financial problems in those markets arose.

Emerging markets currently account for 60 per cent of Thailand's tuna exports by value. The US accounts for 22 per cent and the EU 13 per cent.

To ensure sustainable growth, Thai exporters have tried to explore many markets, and not rely on only one single market, he said.

Analysts from Asia Plus Securities report that the United States' decision to downgrade Thailand to the lowest level on the "Trafficking in Persons" (TIP) report is expected to have a limited impact on Thai frozen-seafood companies because of their relatively small export volume to the US.

Thai Union Frozen Products' exports to the US made up 13.4 per cent of its revenue, while the US was just 1 per cent of Charoen Pokphand Foods' total. Both companies maintain good relationships with customers overseas and their product quality was trusted globally.

Even with the downgrade, orders from overseas markets were apparently unchanged, but it might make it difficult for TUF and CPF to capture new clients in the future, which could affect their future growth.

Labour costs in the industry are also rising, accounting for 8 per cent of TUF's expenses and 12 per cent of CPF's. As a result of the negative factors, the two companies' stock prices might experience short-term pressure.

Thanachart Securities said it did not expect TUF and CPF to face foreign bans, as both companies were leading seafood exporters and had good communications with their customers in terms of their compliance with human-rights standards.

TUF has diversified by importing skipjack and yellowfin tuna that meet EU standards, while its frozen shrimp exports to the US and EU made up only 7 per cent of its total revenue.

CPF has been at the centre of the labour controversy in Thailand after an investigative report by The Guardian newspaper this month.

Supermarkets have responded in various ways. Some like Whole Foods, Carrefour and ICA Norway have chosen to delist the supplier because of the allegations, but others like Wal-Mart and Costco have argued that they prefer to stand by the producer and use their weight to drive change.

Tris Rating has downgraded CPF to a "negative" outlook, from "stable", but without any mention of the TIP report.

The new rating reflects CPF's increasing financial leverage and deteriorating cash-flow protection following the acquisition of CP Pokphand Co and a slow recovery from the outbreak of early mortality syndrome in shrimp in Thailand.

"The 'AA-' ratings continue to reflect the company's leading position in the Thai agribusiness and food industry, diverse range of products and markets, strategic shift towards branded food products and financial flexibility."


-- The Nation 2014-06-26

[Bluespunk]

"Little effect from slavery accusations on fish-product exports so far: ministry"

Exposure. Not accusations. Exposure.

[chooka]

Well it makes the U.S look like hypocrites then. The condemn the slavery but then support it by importing the seafood. I bet Thailand is laughing its butt off at the U.S now and it will be business as usual

[manarak]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

[ChrisY1]

Almost 60% exports of Thai fish products go to 3 regions...Japan, Europe and the USA.....Thailand thinks there'll be minimal effect if these regions limit their imports.....an immature face saving effort at best!

The consequences of these regions putting on the brakes, would have devastating impact here.

[timewilltell]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

If you are captive on a boat on the high seas it is a little difficult to run away. It is slavery lets make no bones about it.

Sent from my iPad using ThaiVisa app

[iphad]

It could take a few months before shipments are curtailed....but in the end it could be consumers that decide.

But with a world shortage of food & consumers that buy at the lowest price there might be no effect at all.

[manarak]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

If you are captive on a boat on the high seas it is a little difficult to run away. It is slavery lets make no bones about it.

Sent from my iPad using ThaiVisa app

yes... but the majority of alleged slaves are said to be employed on land

[timewilltell]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

If you are captive on a boat on the high seas it is a little difficult to run away. It is slavery lets make no bones about it.

Sent from my iPad using ThaiVisa app

yes... but the majority of alleged slaves are said to be employed on land

I am sure there are multiple times more people exploited than there are kept as slaves. Neither is acceptable.

Sent from my iPad using ThaiVisa app

[Pib]

Well it makes the U.S look like hypocrites then. The condemn the slavery but then support it by importing the seafood. I bet Thailand is laughing its butt off at the U.S now and it will be business as usual

Yea, based on the news reports and BS media releases like this OP it's obvious they are laughing their butts off--NOT!!!! They know this will impact sales not to far down the road once current contracts expire...and of course they know it gives Thailand another big black eye.

Gosh, I so like this country but they just keep shooting themselves in the foot...and then reloading the gun to shoot themselves in other foot....and then they look up and say, "What!? What's wrong!? You just don't understand me!"

[noitom]

The Thai "attitude." We beat it.

[Chang_paarp]

A little soon for things to change. There are current contracts that will come up for renewal, that will be when things change, not all the industry is on a spot market. New suppliers need to be negotiated with, and checked so they don't have the inconvenience of having to change due to embarrassing behaviour.

[Krataiboy]

Thai traders . . . will conduct a roadshow to . . . create understanding of labour issues.

The performers will be dressed as black and white minstrels and sing popular fishing songs such as "Happy To Be Caught in the Press-Gang's Net" and "Just Love The Kiss Of My Massa's Whip".

[Suradit69]

Well it makes the U.S look like hypocrites then. The condemn the slavery but then support it by importing the seafood. I bet Thailand is laughing its butt off at the U.S now and it will be business as usual

"...and it will be business as usual."

Unfortunately I have a Thai friend who works for a company that deals in fish ( have to admit I'm a little unclear on what they do, but it involves selling fish locally at least) in Pattaya and he said they've laid off many people. He said 100, but I think that may have been an exaggeration.

I don't condone slave labor/human trafficking or anything else that involves unscrupulous exploitation of people, but the low level people who have lost their jobs are being punished for the misdeeds of others. As so often happens with these heavy-handed campaigns of righteous indignation, those who end up paying the price are not the ones who deserve it.

[fab4]

Thailand has nothing to worry about from Tesco - they'll just keep on buying. Here's the excuse from Kevin Grace, Tesco's Group Commercial Director

There has rightly been a strong reaction to the revelations in the Guardian in the last fortnight that migrant workers have been forced to work on some Thai fishing boats against their will. The reports of abuse make shocking reading. These reports were followed by calls for supermarkets to cut their ties with the suppliers named. Some have decided to suspend their supplies but we have not taken the same decision. That is not because we don’t want to do all within our power to end this abhorrent practice – of course we do. It is because we want this to end that we are taking a different path.

The situation in Thailand concerning slavery is different in many ways. But the principle remains the same - if we use the market we have the opportunity to help make it better.

https://www.tescoplc.com/talkingshop/index.asp?blogid=213

[Nickymaster]

Of course we can't blame the guys that keep on winning elections for over a decade for the slavery that supposedly is present in Thailand.

[manarak]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

If you are captive on a boat on the high seas it is a little difficult to run away. It is slavery lets make no bones about it.

Sent from my iPad using ThaiVisa app

yes... but the majority of alleged slaves are said to be employed on land

I am sure there are multiple times more people exploited than there are kept as slaves. Neither is acceptable.

Sent from my iPad using ThaiVisa app

Agreed.

Yet I still think reports and news stories should use language that accurately describes the situation.

[plachon]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

Have you seen the film "12 Years a Slave"? If not, you might do well to and then reappraise your assessment that the fate that befalls foreign migrant labour is any different and not "slavery". The key is in understanding the words "freedom to chose" and "wages". It is not mere exploitation, which happens to workers in every country, but slavery, pure and simple. Maybe you didn't see the Guardian investigation either? A little self-education about simple definitions would go a long way.

[manarak]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

Have you seen the film "12 Years a Slave"? If not, you might do well to and then reappraise your assessment that the fate that befalls foreign migrant labour is any different and not "slavery". The key is in understanding the words "freedom to chose" and "wages". It is not mere exploitation, which happens to workers in every country, but slavery, pure and simple. Maybe you didn't see the Guardian investigation either? A little self-education about simple definitions would go a long way.

My point is simply about truth and about the need for reports conveying to the public the correct image of what happens in reality.

What the public understands under "slave labor" is people kept in chains, working 20 hours a day and possibly abused in other ways in addition to forced labor.

"12 years a slave" is not a good comparison because the movie depicts an environment where slavery is legal, and if Northup had ran away, the system would be against him, i.e. he would be recaptured or killed.

I guess everyone does exagerate to advance his political agenda.

My objection is a mere detail in the big picture, and there is nothing wrong with putting an end to these practices.

As I posted earlier, police (or the navy incase of ships) should do frequent checks and be merciless in punishing offenders, including company shareholders.

[Thai at Heart]

Well it makes the U.S look like hypocrites then. The condemn the slavery but then support it by importing the seafood. I bet Thailand is laughing its butt off at the U.S now and it will be business as usual

Obama still has 30 days to sign off on the sanctions. I think someone better get their expense account and dancing girls on the case.

[Crushdepth]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

The Thai fishing industry absolutely does has slavery. It's not a strong word, it's the reality.

[taony]

Hilarious. The downgrade was how many days ago? Big corporations make orders how long in advance?

Ostriches.

-*I typed this myself*-

[JusMe]

The ministry might be denying any effect, but anecdotally, two major supermarkets here in Canada that used to carry frozen Thai prawns have none in their freezers last week.

Perhaps only a distribution pause, but perhaps reflecting some of the North American dislike of the whole issue.

[Pib]

The ministry might be denying any effect, but anecdotally, two major supermarkets here in Canada that used to carry frozen Thai prawns have none in their freezers last week.

Perhaps only a distribution pause, but perhaps reflecting some of the North American dislike of the whole issue.

The Thai govt will just say, "See our shrimp are selling great in Canada...will need to export even more shrimp to Canada."

[belg]

thailand prefers to stick their head in the sand

so no evil, hear no evil

(replace evil with ... greed, corruption, nepotism, education, qualifications)

[plachon]

"slavery" is IMHO too strong a word - as I understood from the report, most of the workers are scammed into working, i.e. brokers and transporters fabricate a bogus debt that the worker has to repay, but cannot, because it keeps growing. "exploitation" would be a more accurate word for describing the situation of most of the alleged slaves.

I was unable to find details about what keeps the exploited persons from simply running away, apart from believing the bullshit that's fed to them.

I hope the junta will correct the situation. Every foreigner should have a work permit and be in possession of his passport. Employers in breach of the Law should be punished harshly.

Have you seen the film "12 Years a Slave"? If not, you might do well to and then reappraise your assessment that the fate that befalls foreign migrant labour is any different and not "slavery". The key is in understanding the words "freedom to chose" and "wages". It is not mere exploitation, which happens to workers in every country, but slavery, pure and simple. Maybe you didn't see the Guardian investigation either? A little self-education about simple definitions would go a long way.

My point is simply about truth and about the need for reports conveying to the public the correct image of what happens in reality.

What the public understands under "slave labor" is people kept in chains, working 20 hours a day and possibly abused in other ways in addition to forced labor.

"12 years a slave" is not a good comparison because the movie depicts an environment where slavery is legal, and if Northup had ran away, the system would be against him, i.e. he would be recaptured or killed.

I guess everyone does exagerate to advance his political agenda.

My objection is a mere detail in the big picture, and there is nothing wrong with putting an end to these practices.

As I posted earlier, police (or the navy incase of ships) should do frequent checks and be merciless in punishing offenders, including company shareholders.

I don't think you have either read/seen the Guardian investigation or watched "12 Years a Slave". Neither do you understand the term "slavery" nor how it is appropriate to the Thai situation with regards to the conditions in which many people are tricked into and expected to work in the fishing and other industries. In fact, you come across as an apologist for the practices shown to be common via not only the Guardian investigation, but by numerous other investigations, that led to Thailand's recent downgrade to Tier 3 status. Do you think that decision was just made on a whim by someone in Washington?

But to just try to understand your point of view......how was the year long investigation by The Guardian not "the correct image of what happens in reality" in parts of the Thai fishing industry? Presumably you have your own inside information to refute the claims made, backed up by numerous witness statements?

People do not have to be "kept in chains" to be classified as slaves. The sea surrounding a boat is a pretty good "chain" restricting a persons freedom to escape, if you ask me. And as the investigations showed, many slave fishermen did try to escape by jumping over board, some to try to reach shore, while others to commit suicide. Some of the escapees were caught by their owners and either tortured or killed, some by extremely gruesome means as a warning to others not to attempt it themselves. Very like "12 Years a Slave", in fact. Again, did you actually watch either of them?

If you did, then I can only assume you have a very poor level of comprehension and empathy for the victims of this widespread and appalling crime. You also do not have a clue as to the standard and widely accepted definition of "slavery". I'll repeat it: A little self-education about simple definitions would go a long way. Do yourself a favour and stop digging.

[tomyummer]

I thought this piece was about little effect after the government carried out some initial investigation. Boy, was I wrong!

It's about the government flippin' the bird to everyone accusing them of labor violations. A big F you.

Typical Thailand. No shame, no brain.