Several Thai products, including pet food and rice, are poised to gain a larger market share in America amid escalating US-China trade tensions, according to the Thai Trade Policy and Strategy Office (TPSO).
Several Thai products, including pet food and rice, are poised to gain a larger market share in America amid escalating US-China trade tensions, according to the Thai Trade Policy and Strategy Office (TPSO).
Director-general of TPSO Poonpong Naiyanapakorn said the office is monitoring the impact of US-China trade tensions on Thai agricultural goods. It categorised these products into three groups, namely high-potential products, potential products, and items requiring trade diversion monitoring.
Poonpong said high-potential products are those for which Thailand already enjoys a substantial share in the US market, and are likely to grow as substitutes to Chinese products. These include pet food, rice, prepared mackerel, flounder fillets, and prepared or preserved bamboo shoots.
Potential products refer to items where China dominates the market, but Thailand holds some market share and has a chance to increase its presence through improved production and marketing strategies, he said. These include various pasta products such as rice noodles and vermicelli, frozen squid, soy sauce, prepared or preserved fish such as horse mackerel, and frozen peas and beans.
Meanwhile, products requiring trade diversion monitoring consist of agricultural items produced by both China and Thailand, which Thailand may need to import due to domestic supply challenges.
Poonpong said that while this could heighten competition, it may also allow Thai producers to take advantage of cheaper imported raw materials including fresh or chilled garlic, prepared and preserved vegetables, dried chili, peppers, dried green tea, and dried onions or onion powder.
Maintaining Thailand's US market share will be a challenge because the US plans to impose reciprocal tariffs on certain Thai goods of up to 36%, Poonpong said.
Thai Commerce Ministry has developed both short- and long-term strategies, including deterring illegal imports and enforcing strict regulations on agricultural imports to meet quality and safety standards.
Poonpong said the impact of international trade on domestic agriculture must be assessed, while ensuring local producers are protected.
The ministry also tackles potential trade obstacles such as intellectual property issues and accelerating free trade agreement discussions.
In 2024, Thailand's agricultural exports to the US reached 4.76 billion USD, with the top ten export products of pet food; rice; prepared tuna; fruit and vegetable juice; processed food; sauces and seasoning for making sauce; processed shrimp such as shrimp balls; frozen shrimp; fruit and processed nuts; and pineapple products./.
Source: Vietnam+
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
