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Thailand, Brazil Request Higher Import Quota

by 5m Editor
8 January 2010, at 5:34am

GLOBAL - Thailand and Brazil have asked the EU authorities to raise the quota for chicken meat imports for this year.

Thailand and Brazil have called for the European Union to set a higher quota for chicken imports this year, according to The Nation of Thailand.

Negotiations failed to reach a conclusion in the meeting at the end of last year. The EU wants to calculate its chicken quota based on the 'most favoured nation' principle, which combines export statistics for all countries.

Thailand and Brazil want the quota based on country-specific export statistics.

A Commerce Ministry source told The Nation that the delay in the EU's chicken quota might cause difficulties for Thai chicken exports early next year.

"The same export quota volume is not fair for Thailand as we are one of the leading chicken suppliers to the EU market," the source said. Thailand ships more chicken meat to the EU than any other country.

China and Chile, which are Thailand's rivals, will be the big winners from the new allocation system if the EU refuses to use the country-specific system, the source said.

Thai processed chicken exported to the EU has now almost reached the quota for this year. Thailand might be handed a lower export quota under the new system, the source said.

The EU's processed chicken quota for Thailand is 160,033 tonnes, which are taxed at 10.2 per cent. For chicken over the quota, the duty could be very high – more than 50 per cent – as the EU wants to protect its domestic market.

The EU, at 40 per cent, is the largest export market for Thai chicken.

Thai and Brazilian chicken exporters would soon send a letter to the European Commission asking it to consider calculating the chicken quota based on each individual country's export statistics, the source said.

The talks and a new quota should be finalised in three months, the Ministry source told The Nation.