AFTA may impact Thai rice in both positive and negative ways

BANGKOK, 13 January 2010 (NNT) – The Office of Agricultural Economics (OAE) mentioned that ASEAN Free Trade Area (AFTA) implementation could affect in both positive and negative aspects to Thai rice.

The Secretary of OAE Apichat Jongsakul stated that in 2008-2009, Thailand exported rice at 9.5 million tons, the largest amount in the world. However, in 2010, AFTA would be in full effect with tariff reduction of imported goods to zero percent and the cancellation of quota of 23 agricultural items, rice as one of such items. These would affect Thai rice both positively and negatively.

In positive aspect, Thailand could export rice more as ASEAN was a big market of 500 million population. On the contrary, the Secretary cited the negative impact that there might be GMO contamination in Thai rice with the mixing of imported rice from neighboring countries, which would result in the loss of reliability of Thai rice in the global market thereafter.

Mr Apichat added that the Restructure Agricultural Fund must provide farmers and related parties the knowledge of impacts from AFTA, for their preparations. The fund had also formulated the strategy to handle with AFTA impacts in an appropriate direction.