USGC urges Thailand to lower DDGS tariffs

by World Grain Staff
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WASHINGTON, D.C., U.S. — With assistance from the Foreign Agricultural Service in Bangkok and the Thai Feed Millers Association, the U.S. Grains Council (USGC) brought together key decision makers from the Thai Feed Association to discuss lowering the current tariff on U.S. distiller’s dried grains with solubles (DDGS) and corn gluten meal (CGM). Currently, U.S. imports into Thailand are subject to a 9% tariff, but involved parties are now negotiating the possibility of lowering the tax to 5% with approval from the Thai government.

According to Adel Yusupov, USGC regional director in Southeast Asia, DDGS exports to Thailand grew rapidly from 2004-09 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% tariff rate would not affect Thai producers as it was still far above the 2% tariff currently imposed on soybean meal imports,” Yusupov said.

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% tariff rate for U.S. DDGS and corn gluten meal imports.
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