THAILAND: Chicken farmers and factory workers in Thailand protest against EU import tax hike

Hundreds of Thai chicken farmers and processing factory employees protested outside European Union Commission office in Thailand on Monday (August 21), in opposition to a plan to hike the poultry import tariff. The protesters carrying banners, chanted "EU is cruel, EU is unfair and EU get out." The current tariff levels for exports of poultry products to the EU are 9 Euros per 100 kg for cooked chicken, 15.4 Euros for salted and 8.5 Euros for turkey. Exports falling within the quotas would be taxed at the existing rates, but exports beyond that level would be taxed at a rate of 102 Euros per 100 kilos, the European Commission's delegation said in a statement "If the EU increase the boiled chicken import tax, it will dramatically reduce Thailand's export competitiveness ability in that market" said Anant Sirimongkolkasem, President of Boiler Processing Export Association who took part in the protest on Monday. "The impact will be huge against Thai farmers who want to increase their production, it will stop them from growing," Anant added. Thailand has been the largest exporter of cooked chicken products to the EU in recent years. The figures increased rapidly from 61,105 tons worth 176,500,000 Euros in 2003 to 106,503 tons worth 265,862,000 Euros in 2005. The total EU imports of cooked chicken in 2005 was 162,120 tons worth 384,729,000 Euros. "We feel we are understand for the Thai farmer situation, but we do also have farmers in the EU, we need protection and we have to introduce this tariff change to make it to open the negotiation to introducing the tariff change, because we need to streamline our protection of poultry meat" said Jean Jacques, EU trade counsellor. The EU is one of Thailand's largest trading partners. In 2005 Thailand's exports to the EU totalled 11.36 billion Euros and imported 8.3 billion Euros. From 2001 - 2005, Thailand averaged a trade surplus with the EU with some 3.1 billion Euros. Thai exports of uncooked poultry products to the EU have been suspended since January 2004, due to outbreaks of Avian Influenza in Thailand.

ITN Source | August 21, 2006

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