Bangkok: The US Section 301 tariff increase, which raises taxes by 12.5%, poses a potential price disadvantage for Thai shrimp while the impact on tuna is limited. The Department of Fisheries has assessed the implications of the U.S. Section 301 provision, which involves a proposed 12.5% additional import tariff. The concern for Thailand is not controlling imported goods produced with forced labor, but rather the protection of domestic labor. Adjustments to cost structures and supply chain measures are being urged to mitigate this impact.
According to Thai News Agency, Ms. Thitiporn Hlaoprasert, Director-General of the Department of Fisheries, revealed that the United States Trade Representative (USTR) identified 60 key trading partners, highlighting the failure to enforce prohibitions on goods produced using forced labor as an unreasonable trade practice. The US proposed a 10% tariff on countries with existing bans or trade agreements, while Thailand faces a 12.5% tariff.
The Department of Fisheries has assessed the impact on Thai exports, particularly tuna and shrimp, which make up 76% of Thai fishery exports to the US. Thai tuna, holding a 29.73% market share, is expected to maintain its position due to Thailand's strong processing industry. Conversely, Thai shrimp, with a 4.53% market share, may face a price disadvantage against competitors like India and Ecuador, where production costs are lower.
The Department of Fisheries emphasizes the need for public and private collaboration to restructure costs and enhance the value of Thai shrimp products. Additionally, measures to address labor issues are crucial to prevent trade barriers. A committee has been proposed to set standards for imports at risk of forced labor, and a working group is analyzing the US Department of Labor's report on forced labor in Thailand's fishing industry.
Efforts are underway to improve worker registration and protection through the Seaman's Book system, which sets age, contract, and wage standards. Fishing vessels are monitored by control centers and teams to ensure compliance with labor standards. The Department of Fisheries aims to use this situation to upgrade the Thai fisheries industry to meet international labor and environmental standards, ensuring sustainability and competitiveness in the global market.