Australian potatoes now tariff-free in Thailand

Tariffs for seed and processing potatoes exported to Thailand, which were once as high as 27 per cent, have been eliminated. See what it means for the market.

Australian potatoes are now tariff-free in Thailand, marking the completion of an agreement struck in 2005 as part of the Thailand-Australia Free Trade Agreement.

THAILAND could soon overtake Korea as the biggest export market for Australian seed and processing potatoes following the elimination of tariffs that were once as high as 27 per cent.

Thailand’s protracted reduction of tariffs has dropped from 2 per cent to zero to the delight of farmers and exporters keen to capitalise on Asia’s second largest economy.

The reduction marks the completion of an agreement struck in 2005 as part of the Thailand-Australia Free Trade Agreement.

The elimination of tariffs is in addition to the removal of quotas that limited the volume of seed and processing potatoes that could access a lower tariff rate.

AusVeg national manager for export development Michael Coote said Australian potato growers stood to benefit from opportunities in Thailand.

“Thailand is an emerging market for Australian potatoes in particular, with the Asian market currently the second largest importer of Australian potatoes behind South Korea.

Australia sent $4.6 million worth of potatoes to Thailand in 2019.

Agriculture Minister David Littleproud said the improved market access also allowed exporters to send their potatoes to Thailand at any time of year.

“The Australian Government is committed to working with Thailand to implement our commitments under TAFTA and continue to increase our two-way agricultural trade,” Mr Littleproud said.

Mount Gambier seed potato grower Ben Dowling, of Dowling AgriTech, said he would expand his business to capitalise on tariff-free access. “It’s very good news and I can envisage us doubling our exports within three years,” he said.

Mr Dowling grows about 8000 tonnes of seed potatoes annually, 95 per cent of which is sold domestically. The remainder is sold to markets across Asia.

He said few growers exported their produce, but the elimination of tariffs into Thailand would make it more of an attractive prospect. “It certainly won’t alter the price, but it must make us more competitive,” he said.

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