Thai Industry Opposes Mexican Dolphin Safe Entry ff

The easing of American import regulations protecting dolphins is unlikely to dent Thai tuna exports in the short term, traders have said.

The move to relax dolphin-safe standards has raised concern among Thai exporters that it will become easier for Mexico to ship tuna to the United States. To date Mexico tuna has been barred to the US market because Mexico has not dolphin-safe standards.

Thai Union Frozen Products (TUF), a leading exporter, will ask its American subsidiary, Chicken of the Sea, to raise the issue with the US government. ”We're closely monitoring the issue. But it remains unclear how much the US measure will jeopardize our tuna business in the US,” said a TUF executive, who declined to be identified.

The Bush administration recently eased regulations under which the “dolphin safe” label was allowed only on tuna caught by methods other than encirclement by nets. Under the amended rules, trapping of dolphins in nets will be accepted as long as the mammals are released unharmed. To ensure safety standards are met, each fishing boat will have an official observer on board.

The Thai Trade promotion Office in New York has told Thai tuna exporters that the move will make it easier for Mexican tuna to enter the US, benefiting from import tariff privileges as low as 5% under the North American Free Trade Agreement (Nafta). ”However, the issue is not over yet as environmentalists and animal protection groups are expected to file a lawsuit against the US government,” the TUF executive said.

Poonkeite Thangsombat, president of the Thai Food Processors' Association, said that the entry of Mexican tuna into the US market would not seriously harm Thai exports.

The broader picture shows that Thailand was still the leader in the US tuna market because leading exporters such as TUF had a long-established presence, Poonkeite said.

Even so, Chicken of the Sea plans to join two leading US-owned tuna producers, Star Kist, and Bumble Bee, in raising the issue with Washington.

The TUF executive conceded that because of their higher costs, Mexican tuna exporters were unlikely to compete effectively against American-based producers. TUF's tuna business in the US is worth at least US$300 million (about 12.6 billion baht) a year. Frozen tuna loin and canned tuna combined account for 60% of TUF's sales.

Source: Bangkok Post