International Egg and Poultry Review

By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at the latest on the EU/Thailand tariffs.
calendar icon 20 December 2006
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EU and Thailand Agree On New Quotas and Tariffs

The European Commission concluded an agreement with Thailand on a new regime for imports of salted poultry meat and cooked chicken meat into the EU. The agreement modifies the current bound tariff rate concessions for these two items and foresees the creation of new tariff rate quotas (TRQs), in conformity with GATT Article XXVIII.

Salted poultry meat previously had a bound tariff rate of 15.4% with no volume restriction. The new concession provides a ceiling of 264,245 MT with a bound tariff rate of 15.4%. Out of quota will be 1,300 euros/ton. The allocation for Thailand will be 92,610 MT.

Cooked chicken meat previously had a bound tariff rate of 10.9%. The concession provides for a total tariff rate quota of 250,953 MT with a tariff of 8.0%. Out of quota rate will be 1,024 euro/ton. The allocation for Thailand will be 160,033 MT.

The EC notified the WTO on June 15, 2006 its intention to modify the concessions contained in the EC Schedule for three poultry lines in accordance with GATT Article XXVIII. The Commission conducted negotiations with WTO Members having negotiating rights: Brazil, for salted poultry meat (HSCode 0210.99.39), for turkey meat (HS Code 1602.31) and for cooked chicken meat (HS Code 1602.32.19) and with Thailand for salted poultry meat and cooked chicken meat. Negotiations with Brazil were concluded on October 26, 2006.

As a result of the conclusion of the agreements with Brazil and Thailand, estimates are that EU chicken imports will increase to about 7.5% of EU domestic consumption compared to 6.5% in 2005. Thailand’s exports of cooked chicken meat into the EU in 2005 totaled 113,096 tons while exports in 2006 are forecast to reach 120,000 – 125,000 tons. Thai exports of salted poultry meat and raw poultry have been banned due to outbreaks of highly pathogenic avian influenza.

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