Thai fishery operators are feeling relief after the EU on Tuesday de-listed Thailand from yellow card status in recognition of the country's progress in tackling illegal, unreported and unregulated (IUU) fishing.
Thailand was issued the yellow card on April 29, 2015, with a ban on all Thai seafood exports threatened unless the issue was resolved.
The penalty made the government work harder to upgrade the fisheries industry and improve its credibility. The public and private sectors jointly rushed to combat human trafficking and avoid the loss of massive profits from the lucrative fishing industry.
Poj Aramwattananont, vice-chairman of the Thai Chamber of Commerce (TCC), said fisheries operators appreciate the government's efforts to tackle the problem over the past three years and nine months.
"Their work improves the country's reputation," Mr Poj said.
In mid-2018, Thailand was promoted from the Tier 2 Watch List to Tier 2 in the US State Department's Trafficking in Persons report.
The annual report evaluates 187 countries and territories and ranks them in four tiers, with Tier 1 being the best and Tier 3 the worst.
Mr Poj, also president of the Thai Fishery Producers Coalition, said the effort represents a turning point for Thailand in developing the agricultural and fisheries sectors in the long run.
In addition, two new statuses regarding human trafficking are supporting new investment flows for the fisheries industry and increasing confidence in Thai-made fishery products in the global market.
"After that, Thai operators will get sustainable acceptance from many import countries," Mr Poj said.
TCC chairman Kalin Sarasin said the newly upgraded status was good news for the country's reputation, fisheries and related supply chain, presenting a new opportunity for fishery operators to expand in new markets worldwide.
"We believe that Thai-made seafood products will easily enter new countries, while we appreciate the government for this sincere action to solve the human trafficking issue in Thailand," Mr Kalin said.
The country's agriculture and food industries contributed 8.2% to GDP in 2017. Workers in the industries totalled 11.78 million, representing 31.5% of the country's labour market and more than 50% of Thai households.
Thawee Piyapatana, senior vice-chairman of the Federation of Thai Industries, said that after the yellow card de-listing Thailand can gain more benefits in terms of export volume of fishery products.
Meanwhile, Thai-made products will have a better reputation of meeting global standards, Mr Thawee said.
"It will reflect positively on Thailand's economy and industry, not only in seafood products, but also other agricultural goods," he said. "Moreover, Thailand gains the best rank among Southeast Asian countries."
He said the EU and US cannot blame Thai-made seafood products for being connected to illegal fishing and human trafficking.
Optimistic outlook
Usanee Liurat, executive vice-president of Asia Plus Securities (ASP), said the EU's yellow card removal is a boon for Thai seafood exporters, which will enjoy easier access to new customers.
The move also improves Thailand's reputation in the global fishing industry, bringing the country in line with international standards and providing an example for tackling illegal fishing that Cambodia, Taiwan and Sri Lanka can emulate, Ms Usanee said.
Thailand is the world's third-largest exporter of seafood, a status that rights groups say is achieved through illegal overfishing and reliance on low-paid trafficked workers from neighbouring countries.
Ms Usanee said Thai Union Group Plc, Charoen Pokphand Foods Plc, Asian Seafoods Coldstorage Plc and Seafresh Industry Plc are SET-listed firms poised to benefit from the end of the EU's threat to ban Thai seafood exports.
"There is a chance that existing customers will increase their orders in the future," she said.
The move is a positive development for revenue generated from seafood exports, as 50% of Asian Seafoods Coldstorage's total revenue come from exports of shrimp, squid, tuna and sand whiting fish, while 42% of Thai Union Group's total revenue derives from exports of tuna, salmon and shrimp, Ms Usanee said.
The export value of Thailand's seafood industry totalled 58 billion baht between January and November 2018, down 12% year-on-year, according to ASP.
"The improvements to regulation and enforcement of the fishing industry have been significant, not only in terms of traceability and the sustainable development of fisheries, but also in terms of eliminating human rights violations," said Thiraphong Chansiri, chief executive of Thai Union Group.
