Shrimp, the only Thai export industry to grow during the downturn, still has issues to clear up
By Jon Fernquest
Thailand's shrimp exports remained strong during
this year's global economic downturn.Despite this strength, the industry still has some issues to clear up.
Today's article indicates that US anti-dumping measures still remain in force despite a WTO ruling favourable to Thailand (Read article).
There have also been accusations that the industry employs child labour and that Burmese migrant workers are working under substandard conditions (Read New York Times article from 2007).
In this regard, the statement of the president of the Thai Shrimp Association is interesting:
"...it's imperative for
authorities to
accelerate clearing the
US accusations over the child-labour issues, as this may
affect the sentiment
of US consumers."
What if the allegations are true? Can one really assume before starting a legal investigation what the outcome of that investigation will be?
Last year there were also efforts made to differentiate Thai shrimp offerings
"to weather tough international markets" that will help make the industry more competitive (Read article).
The article follows the vocabulary:
it's imperative for X to do Y - X should
do Y
authorities - people who have the power to make decisions and enforce laws
accelerate - move faster
an accusation against Y - claiming that Y has done something wrong
clearing accusations - proving that the accusations are not true
sentiment - feelings (how they feel about an issue)
differentiate Thai shrimp offerings - make Thai shrimp products different from the competitors
authorities - people who have the power to make decisions and enforce laws
accelerate - move faster
an accusation against Y - claiming that Y has done something wrong
clearing accusations - proving that the accusations are not true
sentiment - feelings (how they feel about an issue)
differentiate Thai shrimp offerings - make Thai shrimp products different from the competitors
Economics
AGRIBUSINESS
Shrimp exports withstand worldwide downturn
PHUSADEE ARUNMAS24/09/2009
Thailand's shrimp industry remains in good shape despite the global downturn, with exports expected to grow both in volume and value this year.
Local shrimp production is projected to increase by 5% this year to 520,000 tonnes, with exports also up 5% to between 380,000 and 390,000 tonnes, said Somsak Paneetatyasai, president of the Thai Shrimp Association.
"Thailand's shrimp industry has been left unscathed by the global economic crisis, even though about 90% of production relies on exports," said Mr Somsak.
"Earlier in the year, we planned to cut local production by 20% to only 396,000 tonnes to cope with expected shrinking demand due to the world crisis, but until now the world's shrimp consumption has remained strong."
withstand - survive
a strong force that could destroy
in good shape - in good condition
remains in good shape - still in good condition
left unscathed by Y - not hurt by Y
in good shape - in good condition
remains in good shape - still in good condition
left unscathed by Y - not hurt by Y
Shrimp exports are expected to earn Thailand about 89.25 billion baht this year, up 5% from 85 billion baht last year, said Mr Somsak. The United States is expected to remain the largest export market, accounting for about 50-55% of exports followed by Japan and Europe, which would each claim about 10-15%.
Strong shrimp exports are attributed mainly to the efficiency and quality of Thailand's shrimp production. Shrimp is the only agricultural product to record export growth in the first eight months of this year, with frozen and processed shipments up 6.5% to $1.53 billion.
US anti-dumping measures and child labour issues
To ensure sustainable export growth, the government is being urged to help address the industry's challenges, particularly trade barriers such as current anti-dumping measures by the US government targeting Thai shrimp and allegations by the US about child labour, said Mr Somsak."The government should continue negotiating with US counterparts to remove Thai shrimp from anti-dumping, while it's imperative for authorities to accelerate clearing the US accusations over the child-labour issues, as this may affect the sentiment of US consumers," he said.
The government is also being asked to manage baht exchange rate to improve exports, and to open new markets for shrimp exports to diversify risk.
Pinyo Kiatpinyo, president of the Federation of Shrimp Farmers Co-operatives of Thailand, also urged the government to ensure fair competition between small-scale and larger farmers and to develop a shrimp fund to improve access to finance by small and medium-scale farmers.
Currently, Thailand has about 22,000 shrimpers with 110,000 shrimp ponds covering 480,000 rai. Their production last year was 495,000 tonnes of shrimp.
anti-dumping measures
allegations - saying or accusing someone of wrongdoing
child labour - the employment of children at regular and sustained labour, considered exploitative by many international organizations and is illegal in many countries (See Wikipedia)
a counterpart - someone with the same position or at the same level as you in another organisation or country
negotiating with US counterparts - having discussions with US officials to reach an agreement, solve differences
diversify - add variety
diversify risk - add a variety of products, markets, or investments to reduce risk
allegations - saying or accusing someone of wrongdoing
child labour - the employment of children at regular and sustained labour, considered exploitative by many international organizations and is illegal in many countries (See Wikipedia)
a counterpart - someone with the same position or at the same level as you in another organisation or country
negotiating with US counterparts - having discussions with US officials to reach an agreement, solve differences
diversify - add variety
diversify risk - add a variety of products, markets, or investments to reduce risk
(Source: Shrimp exports withstand worldwide downturn, PHUSADEE ARUNMAS, 24/09/2009, link)
