Thailand to Implement Import Quotas on US Pork and Corn Amidst Evolving Trade Landscape

By / / Breaking News

Key Takeaways

  • Thailand plans to establish product-specific import quotas for US pork and corn to safeguard its domestic agricultural sector.
  • This strategic move comes as Thailand navigates a new 19% tariff imposed by the United States on Thai imports, a reduction from a potential 36% rate.
  • The measures are primarily aimed at protecting local farmers from the impact of cheaper US corn and ensuring the stability of Thailand's sufficient domestic pork production.
  • The finalization of these import quotas and associated customs duties is anticipated to take several months, pending parliamentary approval of the recently concluded US-Thai tariff deal.

Thailand is moving forward with plans to implement specific import quotas for agricultural products from the United States, notably pork and corn. This decision is a direct response to recent trade negotiations where the U.S. agreed to a 19% tariff on Thai imports, a significant reduction from an initially threatened 36% rate. The Thai government's primary objective with these quotas is to shield its local farmers from potential market disruptions.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira has emphasized the need for safeguard measures, especially concerning corn, given the significantly cheaper cost of U.S. corn. Thailand is considering requiring feed producers to prioritize purchasing from local farmers first, then from neighboring countries, before turning to U.S. imports. For pork, where Thailand boasts sufficient or even surplus domestic production, current plans do not include importing U.S. pork to avoid adversely affecting local producers.

The proposed import quotas and adjustments to customs duties are part of a broader reciprocal tariff deal between the two nations. While Thailand has agreed to reduce import tariffs on many U.S. products to zero, similar to a Free Trade Agreement (FTA), the specific details for agricultural imports like corn and pork will be carefully managed through quotas. This comprehensive agreement, which also involves stricter anti-circumvention measures with a 40% tax on transshipped or camouflaged goods, awaits parliamentary approval in Thailand. The full implementation process, including defining the precise quotas, is expected to extend over several months.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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