Australian table grape exports to Thailand will be subject to a hike in tariffs after the amount exported exceeded the special agricultural safeguard provision (SSG) for the fruit under the Thailand Australia Free Trade Agreement (TAFTA).
On 4 March the level of grape exports hit 1,262 tonnes, the SSG trigger amount for 2010, meaning subsequent shipments will be subject to a tariff rate of 30 per cent, up from the preferential 15 per cent level enjoyed earlier in the season.
The 30 per cent rate will remain in place for all grape shipments for the remainder of the calendar year.
Shipments already bound for Thailand when the trigger level was reached, with a contract settled before 4 March, will attract the TAFTA preferential rate but will be counted in the volume of imports for 2011.
The SSG provisions under the agreement apply to 41 items nominated by Thailand during negotiations on the deal, and the provision on grapes will apply through to 2015.
Australia has sought a review of the deal to raise the trigger level for table grapes and will continue to negotiate with the Thai government on the matter.
