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05 March 2025

Thailand Pushes For ASEAN Food Safety Regulations Amid U.S. Tariff Concerns

Parliament approves food safety framework aiming to bolster Thailand's market position as trade pressures mount.

On March 5, 2025, Thailand's parliament made significant strides toward enhancing food safety regulations within the ASEAN framework, as proposed by Mr. Nrumol Pinyosinwat, the Minister of Agriculture and Cooperatives. The meeting focused on the ASEAN Food Safety Regulatory Framework Agreement, which aims to unify food safety standards across the ten member states. This initiative is not just about compliance but is also seen as a strategic move to bolster Thailand's position as a leading food producer and exporter within the ASEAN region.

During the session, Mr. Nrumol explained the essence of the agreement, highlighting its goal of establishing comprehensive guidelines for food safety and facilitating smooth trade of safe food products among ASEAN countries. According to him, implementing these standards will protect consumer health and lower trade barriers, which will, in turn, encourage the export of high-quality Thai food products.

"Thailand is among the world's and ASEAN's top food producers and exporters, and many ASEAN countries rely heavily on imported food from Thailand," Mr. Nrumol stated. He emphasized the importance of this new framework, stating it would help reduce non-tariff barriers, enhancing opportunities for Thai food exports and potentially increasing market access across Southeast Asia.

The ASEAN Food Safety Coordinated Committee (AFSCC) will be at the forefront of operationalizing these agreements by overseeing compliance and collaboration among member states. Upon the agreement's effective implementation, member countries will work together to create protocols and operational strategies, which will include coordination with health and trade authorities.

With the agreement signed by all ten ASEAN nations on January 12, 2024, it is now poised for implementation, pending ratification by member states. Following extensive debates within the parliament, the agreement received overwhelming support, passing with 547 votes for, only one against, one abstention, and three non-votes.

Members of Parliament also expressed their support, indicating confidence this agreement would help Thailand maintain its competitive edge and standards for exports. They underscored the potential reduction of trade disruptions caused by rejections due to safety standards, which could lead to greater market penetration across the ASEAN region.

Meanwhile, on the same day, the Chairman of the Federation of Thai Industries (FTI), Mr. Kriangkrai Thiennukul, addressed the pressing issues facing the Thai economy related to the impending adjustments to import tariffs on steel and aluminum by the United States. Citing concerns over the potential increase from 10% to 25%, Mr. Kriangkrai voiced the fears of many Thai manufacturers who depend on exports. This increase, he argued, could impose additional tax burdens on their operations, heightening the stakes for Thailand's industrial output.

Mr. Kriangkrai stressed the need for the government to facilitate trade discussions with both the US and member states of ASEAN, echoing the sentiment shared by other industry leaders who feel the pressure from these rising costs. He proposed integrating comprehensive trade data across various dimensions, such as trade balance and service sectors, to enable more effective negotiating strategies and reduce dependence on traditional markets.

This scenario follows significant predictions from the FTI, estimating Thailand's GDP growth to hover between 2.4 and 2.9% for 2025, reflecting external trade pressures and domestic demand vulnerabilities. Their forecasts indicate approximate export growth of 1.5 to 2.5%, with inflation being projected at 0.8 to 1.2%. Such numbers lay bare the challenges facing the Thai economy, underscoring the necessity for timely government interventions to mitigate adverse impacts.

With this blend of proactive food safety legislation and apprehensive industrial tariff conversations, it remains to be seen how Thailand will navigate its dual role as both a leading safe food exporter and as industries react to international trade policy fluctuations. While the ASEAN agreement may signal positive momentum for agricultural exports, the looming US tariff amendments present significant hurdles to broader economic stability.