Thailand's department of Foreign Trade has advised that certain citrus imports from Australia are approaching the 'trigger level' at which temporary tariff increases will be applied to protect domestic Thai production.
Australian fresh or dried mandarins (including tangerines and satsumas), clementines, wilkings and similar citrus hybrids are subject to special agricultural safeguard provisions (SSGs) under the Thailand Australia Free Trade Agreement (TAFTA), Australia's department of agriculture (DAFF) said.
The applicable SSG trigger level for 2010 is a combined total of 944.45 tonnes, DAFF said. But by 27 August, imports of these Australian citrus products had already reached 764.20 tonnes - 80 per cent of the applicable total for the calendar year. The trigger level increases by five per cent each year.
Once the specified trigger level is reached, the tariff rate applied to these Australian citrus imports will double, from 15 per cent to 30 per cent, until the end of the year, DAFF said.
Shipments en route to Thailand when the trigger level is reached, with a contract settled before the trigger level is reached, will attract the TAFTA preferential rate (15 per cent), but will be counted in the 2011 trigger level quota.
DAFF said it would provide further advice to the citrus industry if the 2010 trigger level is reached.
SSG provisions under TAFTA apply to 41 tariff items nominated by Thailand during TAFTA negotiations. The SSG provision on citrus will apply through to 2015, DAFF said.
The department has sought a review of the TAFTA SSGs, withthe aim of reaching agreement on higher trigger levels for a range of products,and will continue its representations to Thai authorities on the matter. In theinterim, the present arrangements remain in operation.
