Background on Thailand and its Corn Market
Thailand, a Southeast Asian nation known for its vibrant culture and bustling cities, has a significant agricultural sector. The country is the world’s largest rice exporter and also produces substantial quantities of corn, which serves as a crucial feed ingredient for its poultry and livestock industries. Corn production in Thailand, however, has faced challenges due to unpredictable weather patterns and competition from cheaper imports.
The Role of the United States in Thailand’s Corn Market
The United States is one of Thailand’s major corn suppliers, and the U.S.-Thailand trade relationship has been strengthened through ongoing negotiations. These discussions aim to facilitate better market access for U.S. agricultural products, including corn.
Key Decisions in the Recent Agreement
On Tuesday, Thailand’s Cabinet agreed to increase its corn imports from the United States and eliminate existing tariffs, as part of these ongoing trade negotiations. The decision was announced by a government spokesperson, Siripong Angkasakulkiat.
Increased Import Quota and Tariff Elimination
Under the new agreement, Thailand will import one million metric tons of corn from the United States between February and June 2026, up from an annual quota of 54,700 tons with a 20% tariff. This significant increase in import volume aims to diversify Thailand’s corn supply and mitigate domestic price pressures.
Local Sourcing Requirement
To minimize the impact on local corn producers, importers will be required to purchase three parts of locally-grown corn for every part imported. This policy aims to support domestic farmers while still allowing Thailand to benefit from more affordable U.S. corn.
Soybean Meal Import Approval
In addition to the corn agreement, Thailand’s Cabinet also approved the importation of soybean meal from 11 suppliers between 2026 and 2028, with a 2% tariff. This move is expected to bolster Thailand’s feed industry and support its growing livestock sector.
Impact on Thailand’s Agricultural Sector
Thailand consumes approximately nine million metric tons of corn annually, with four to five million tons imported. The recent agreement aims to strike a balance between ensuring a stable corn supply and supporting domestic farmers. By requiring local sourcing of corn, the Thai government seeks to maintain a level playing field for its agricultural sector while taking advantage of more competitive U.S. corn prices.
Key Questions and Answers
- What is the main focus of the recent Thailand-U.S. trade negotiations? The primary objective is to increase market access for U.S. agricultural products, specifically corn, in Thailand.
- How much more corn will Thailand import from the U.S.? Thailand will import one million metric tons of corn from the U.S. between February and June 2026, a significant increase from its previous annual quota of 54,700 tons.
- What measures are being taken to support local corn producers in Thailand? Importers will be required to purchase three parts of locally-grown corn for every part imported, ensuring continued support for domestic farmers.
- What is the significance of the soybean meal import approval? The agreement to import soybean meal from 11 suppliers between 2026 and 2028 will strengthen Thailand’s feed industry and support its growing livestock sector.
