Most Thais don’t eat pork, so Bangkok, Thailand, is smothered in it, seasoned with sugar and cloves, deep fried, or served with zingy chilli mince.
However, a $3 billion market that is almost entirely fueled by domestic pig farmers may soon face fierce competition from the US’s third-largest producer, the United States, which produces hogs for the first time.
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Some details have surfaced in the Thai government’s preliminary trade agreement with the US, despite the still-untold fine print.
To reduce its $45.5 billion trade deficit with Thailand, which President Donald Trump claims unfairly disadvantages US producers, Washington has a 10-item wish list of goods that it wants to import duty-free.
Pork, corn, soya beans, some fruits, and some vegetables are included in the list.
The White House revealed some of the many restrictions to its trade agreement, which set the tariff rate for Thailand’s exports to the US at 19%, shortly after Trump met Thailand’s caretaker prime minister, Anutin Charnvirakul, on the sidelines of the ASEAN summit in Malaysia last month.
The White House cites Thailand’s commitment to “expediting access” for US meat and poultry products as well as its commitment to “address and prevent barriers to US food and agricultural products in the Thai market.”
The industry may not survive a flood of less expensive, subventioned US pork, which is fed up with ractopamine, a livestock additive that is prohibited in many nations, including Thailand, according to Thai pig farmers.
Nothing less than the kingdom’s food security is in danger, according to Worawut Siripun, Thailand’s deputy secretary-general, if US pork is allowed into the country without taxes.
Producers will stop raising pigs and will not be able to survive. Worawut, who owns about 10,000 pigs, told Al Jazeera, “The risks are not only for farms that are facing falling pig prices.”
“Affected by these are also those who grow feed crops, as well as veterinary drug sellers, producers of animal feed, and traders of animal feed. Everyone has an impact during the production cycle.
Trump had demanded that Thailand sign a protracted ceasefire agreement before engaging in trade talks with the country.
Thailand has suspended truce talks in the weeks following Anutin’s meeting because of alleged Cambodian violations of the terms of the deal.
Farmers and livestock producers are anticipating increased competition, despite conflicting information about whether tensions with Cambodia have stifled Thailand’s trade negotiations with its biggest export market.
Thailand’s pork industry has overcome difficulties, ranging from swine flu outbreaks to illegal imports from Vietnam and China.
However, it is expensive, primarily as a result of the government’s price controls on corn and soya used to feed pigs and other livestock. The measures are intended to protect the nation’s crop farmers, a crucial voting bloc.
The country’s pig farmers have low margins, just like the majority of Thailand’s agricultural producers.
In Thailand, according to Worawut, “feed is more expensive than US, where it is less expensive,” both imported and locally produced feed materials.
Farmers who raise corn and other feed products are also getting ready for difficult times.
Thailand announced earlier this month that it would remove a 20 percent tariff and reduce its annual corn import cap, which would have previously been set at about 50 000 tonnes.
In the upcoming weeks, prime minister Anutin is expected to dissolve parliament and declare new elections.
He has vowed to run for office despite criticism that he has already lied to Washington before a comprehensive trade agreement has been agreed upon.
Trump administration officials have already made announcements regarding a deal to avoid paying taxes on US digital services companies, the sale of billions of dollars worth of US-made aircraft, and other things.
Due to the difficult economic conditions, Anutin’s bargaining position has weakened.
The National Economic and Social Development Council’s economic growth forecast for 2026 was cut to 1.2 percent on Monday, down from the region’s expected 2 percent expansion this year. This is by far the weakest performance among Southeast Asia’s leading economies, despite this year’s expected growth rate of 2%.
The main political opposition party has demanded that the government pause the negotiations and consult with local stakeholders as a third round of trade talks with the US is drew to a halt following the suspension of the Thailand-Cambodia peace deal.
Weerayut Karnchuchat, the People’s Party’s deputy leader in Thailand’s largest parliament, said, “This is a crucial moment.”
By the end of 2025, the minister of commerce has stated that negotiations will be over. That leaves roughly two months. Eight weeks of stakeholder hearings should be held, especially for those who are directly affected, such as corn farmers.
Thailand should take stock and assess whether regional rivals with full US trade agreements, such as Cambodia, Vietnam, and Malaysia, are satisfied with the outcomes and whether Thailand is offering too much, he continued.
The return of Trump and his trade war has had a difficult year for many midsized businesses, with demand falling across numerous US-exposed supply chains.
From lightbulbs to electrical wires, orders for everything from US-exporting factories are rerouting in Thailand.
Durian farmer and middleman Tipok Lertwattanaweerakul reported seeing a reduction in his profit margins.
Source: Aljazeera
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