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Thai Ag Parties Urged to Lower DDGS, CGM Tariffs

by 5m Editor
21 March 2011, at 12:08pm

THAILAND - With assistance from the Foreign Agricultural Service in Bangkok and the Thai Feed Millers Association, the US Grains Council brought together key decision makers from the Thai Feed Association to discuss lowering the current tariff on US distiller’s dried grains with solubles (DDGS) and corn gluten meal.

Currently, US imports into Thailand are subject to a 9 percent tariff, but involved parties are now negotiating the possibility of lowering the tax to 5 per cent with approval from the Thai government.

According to Adel Yusupov, USGC regional director in Southeast Asia, DDGS exports to Thailand grew rapidly from 2004-2009 but remained at 2009 levels throughout 2010 due to a combination of mycotoxin related issues and Thailand’s high import tariff.

“Although Thailand’s current policies can be considered favorable to local corn growers, officials attending the recent meeting decided that a 5 percent tariff rate would not affect Thai producers as it was still far above the 2 per cent tariff currently imposed on soybean meal imports,“ Mr Yusupov said.

Mr Yusupov called the meeting productive and as a result of the discussions that took place, the Thai Feed Millers Association agreed to approach the government and propose the 5 per cent tariff rate for US DDGS and corn gluten meal imports.