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30 Jun 2017

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TIP Report 2017: Thailand’s Tier-2 Watch List Status Unchanged – Limited Impact, Fishery Exports Still Rising (Current Issue No. 2855)

 In the US State Department's 2017 Trafficking in Persons (TIP) report released on June 27, Thailand was still on the Tier 2 Watch List of the annual listing, unchanged from last year.

Despite that, KResearch views that Thailand's fishery exports to the US should continue to rise for the second year in 2017, boosted mainly by our recovery in shrimp and canned tuna exports – both being key product categories for us, as well as because the image projected by that rating has not worsened since last year. Since the TIP Report does not in itself involve any trade penalties, any direct impact on Thai fishery exports is expected to be minimal. Total fishery exports to the US this year could grow 3.0-5.0 percent to a total value of USD1.147-1.445 billion, which would mean growth of 2.5-4.0 percent in our fishery exports, equal to a value of USD5.790-5.875 billion.

Looking ahead, Thai fishery business may be penalized by additional measures to be announced by the US to prevent Illegal, Unreported and Unregulated (IUU) fishing and seafood fraud, or labeling that do not correctly correspond with the products in the packaging, which will be enforced beginning January 2018. The remaining time until then should be a good opportunity for Thai operators to prepare for its effects that might include creating traceability programs that include all required information on their fishery activities throughout their supply chains.

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