Shrimp exporters unfazed by US tariffs

Thailand's shrimp exports are unaffected by the new US tariffs and antidumping (AD) duties, and the industry aims to produce 400,000 tonnes of shrimp this year, says the Thai Shrimp Association.

Ekapoj Yodpinit, president of the association, said the shrimp industry shows clear signs of recovery this year despite facing unpredictable US trade and tariff policies.

Thailand expects to export over 250,000 tonnes of shrimp this year if production exceeds 400,000 tonnes.

"Thai shrimp exports to the US face a combined tariff of 17.01%, comprising a 15% global tariff and 2.01% AD duties. While comparable to rates imposed on other countries, this level keeps Thailand competitive in the market," he said.

Other major exporters face different rates, such as 18.7% for Indonesia, 15-28.7% for Ecuador, 22.4% for Vietnam, and 24.5% for India.

However, the private sector recognises that America's tariff policy reflects the personal policy of US President Donald Trump and may shift at any time, requiring close monitoring.

The US currently imposes a 10% global tariff on all imports, and Trump said a 15% rate will likely be implemented soon, according to a news report.

Mr Ekapoj said shrimp production is on the rise as farmers have greater confidence due to strong export prospects and increased domestic demand. As a result, shrimp seed stocking is anticipated to increase by over 50% year-on-year in the first quarter.

Despite forecasts of a super El Niño, bringing hot and dry conditions, he believes such weather could benefit shrimp farming more than cold conditions or heavy rainfall, potentially reducing supply risks.

Mr Ekapoj added that Thailand must diversify its export markets, reducing dependence on the US, which once accounted for 60% of shrimp exports but now accounts for only 20%. Japan and China each make up another 20%, while Asean markets and domestic consumption account for 20-25%. This strategy ensures long-term income stability for farmers.

The association urged the government to expedite free trade agreement (FTA) negotiations, particularly with the EU.

Thailand's shrimp exports to Europe dropped from 60,000 tonnes annually to 200 tonnes following the loss of GSP (Generalised Scheme of Preferences) privileges.

Mr Ekapoj said a successful FTA could restore exports to 30,000-40,000 tonnes. FTAs with Canada and South Korea are also crucial as they are high-potential markets.

The association plans to submit a letter and hold a meeting with the government to make shrimp a national agenda, aiming to address disease problems and raise production to meet market needs.

He said that while demand is strong, exporters are hesitant to accept orders until production is assured.

The association urged the government to allocate a budget  for the proposed measures to ensure long-term sustainability.

Source: Bangkok Post