Summary
Thailand’s pork industry may soon face competition from U.S. pork producers due to a potential trade deal between Thailand and the United States. The deal could allow U.S. pork into Thailand duty-free as part of efforts to reduce the trade deficit with the Southeast Asian country. This development worries Thai pig farmers, who fear they may not withstand competition from cheaper U.S. pork.
Key Facts
- Thailand's current $3 billion pork market is mainly supplied by local farmers.
- The U.S. is the world’s third-largest pork producer and wants to export pork to Thailand.
- The U.S. offer to Thailand includes reducing duties on 10,000 items, including pork, to address a $45.5 billion trade deficit.
- President Trump and Thailand's caretaker prime minister discussed trade during a meeting at an ASEAN summit.
- Thai pig farmers are concerned about competition from U.S. pork that benefits from cheaper feed and subsidies.
- Ractopamine, a feed additive used in U.S. pork, is banned in Thailand and could be a point of dispute.
- Trade agreements are influenced by regional tensions, such as a ceasefire agreement with Cambodia.
- Thailand has announced plans to increase its annual corn import limits, which could affect local feed cost dynamics.
