Thailand to Abolish Levies and Raise Quota for U.S. Feed Corn Imports to One Million Tons
Bangkok agrees to remove import duties and expand annual feed‐corn quota under U.S. trade negotiations
Thailand’s government has committed to eliminate import levies on U.S. feed corn and increase its annual quota to one million tonnes as part of a broader trade deal with the United States, a move announced by government spokesman Siripong Angkasakulkiat on Tuesday.
The quota is to rise from the current in-quota level of 54,700 tonnes.
Under the agreement, the in-quota tariff—currently set at 20 per cent for feed-corn imports—will be cut to zero.
The reforms are framed as both a concession in bilateral trade talks and a targeted effort to lower costs for Thailand’s animal-feed sector, where corn is a key ingredient.
While the tariff cut may open the door to larger U.S. feed-corn shipments, the government has conditioned the move on safeguards for domestic producers.
Feed mills must, under draft policy rules, purchase Thai-grown corn at mandated minimum prices before accessing the expanded U.S. import quota.
Some industry sources say this requirement remains under negotiation.
The change reflects Thailand’s delicate balancing act: maintaining its large-scale U.S. export market while accommodating domestic agricultural interests.
Thailand ran a sizeable export surplus with the U.S. last year, and analysts say the corn concession serves as a leverageable trade adjustment rather than pure market liberalisation.
Domestic farmers and feed-industry stakeholders have responded with caution.
Some associations have raised concerns that cheaper U.S. imports—reportedly up to eight per cent cheaper than current regional supply sources—could drive down Thai corn prices and undercut local producers.
The Ministry of Commerce is monitoring compliance and said it will enforce domestic-purchase rules and origin traceability if the policy is implemented next year.
If fully enacted, the one-million-tonne quota and zero-tariff status would make the U.S. a major new supplier of feed corn to Thailand, shifting trade flows currently dominated by neighbouring states.
The change could also enable Thai feed mills to reduce costs by around eight per cent, according to one research estimate.
The formal launch date for the new regime has not yet been set, but Treasury and commerce officials said paperwork is being finalised with U.S. counterparts.
This adjustment is seen by government observers as a measured step rather than wholesale opening—designed to reassure the U.S. of market access while preserving protective mechanisms for Thailand’s agriculture sector.
The quota is to rise from the current in-quota level of 54,700 tonnes.
Under the agreement, the in-quota tariff—currently set at 20 per cent for feed-corn imports—will be cut to zero.
The reforms are framed as both a concession in bilateral trade talks and a targeted effort to lower costs for Thailand’s animal-feed sector, where corn is a key ingredient.
While the tariff cut may open the door to larger U.S. feed-corn shipments, the government has conditioned the move on safeguards for domestic producers.
Feed mills must, under draft policy rules, purchase Thai-grown corn at mandated minimum prices before accessing the expanded U.S. import quota.
Some industry sources say this requirement remains under negotiation.
The change reflects Thailand’s delicate balancing act: maintaining its large-scale U.S. export market while accommodating domestic agricultural interests.
Thailand ran a sizeable export surplus with the U.S. last year, and analysts say the corn concession serves as a leverageable trade adjustment rather than pure market liberalisation.
Domestic farmers and feed-industry stakeholders have responded with caution.
Some associations have raised concerns that cheaper U.S. imports—reportedly up to eight per cent cheaper than current regional supply sources—could drive down Thai corn prices and undercut local producers.
The Ministry of Commerce is monitoring compliance and said it will enforce domestic-purchase rules and origin traceability if the policy is implemented next year.
If fully enacted, the one-million-tonne quota and zero-tariff status would make the U.S. a major new supplier of feed corn to Thailand, shifting trade flows currently dominated by neighbouring states.
The change could also enable Thai feed mills to reduce costs by around eight per cent, according to one research estimate.
The formal launch date for the new regime has not yet been set, but Treasury and commerce officials said paperwork is being finalised with U.S. counterparts.
This adjustment is seen by government observers as a measured step rather than wholesale opening—designed to reassure the U.S. of market access while preserving protective mechanisms for Thailand’s agriculture sector.
