in the same category. It could be said that we are champion for the lines of commodity.
Meanwhile, we also enjoy significant competitive leverage in processed seafood. During
2001-2005, the EU’s imports of processed seafood, particularly, prawn and canned tuna from
Thailand rank the seventh largest in the world and the first among ASEAN members. Our
major competitors include Indonesia, the Philippines, and Vietnam. But Thailand’s import of
agricultural products from EU is minimal, mostly it includes products that EU has been having
advantage over us including wine and alcohol beverage, animal feed and cold climate fruits,
and thus Thailand enjoy surpluses on agricultural commodity against EU.
EU’s strong agricultural protectionism affects the export of Thailand’s agricultural
commodities, particularly, on the goods that we have competitive potential. For example, EU
charges high tariff rates on rice and sugar and exclude them from the Generalized System of
Preferences (GSP).2
In addition, export of certain agricultural commodities face uncertainty
due to the GSP which is subject to renewal every three years and thus affects the competitive
performance. Also, the incompatibility between the Rules of Origin (RoO) and our
manufacturing structure continues to be an obstacle to export from Thailand. For example,
according to the RoO, all canned tuna exported from Thailand must be made of material
wholly obtained from domestic sources. But in reality, we can now catch only 20% of our own
tuna, and the rest is brought from non-Thai waters and through import. Thus, Thailand is not
granted GSP on this category.
Due to similar trade structures in industrial goods, Thailand and ASEAN becomes
rivals in the EU market. Prevailing products in the list of trade between Thailand and EU
include machinery, office equipment, computer accessory, electrical appliances, and
chemical products. Major export during 1997-2006 includes computer equipment,
automobile and parts, and air-conditioners. Singapore and Malaysia are main rivals to us in