Thailand to lift tariffs and increase U.S. corn imports eighteenfold under new trade pact

The Thai government announced it will eliminate import tariffs on U.S. feed corn and increase import volumes more than eighteenfold starting next year, in line with its recent trade agreement with the United States. The move is expected to strengthen bilateral trade relations while ensuring a stable supply of raw materials for the country’s livestock feed industry.

On November 12 (local time), Thailand’s cabinet approved an expansion of its annual U.S. corn import quota to 1 million metric tons, up from the previous 54,600 tons, while reducing the existing 20% tariff to zero. The sharp increase represents roughly an 18.3-fold expansion in allowable imports.

A Thai government official explained, “This measure supports the nation’s feed industry by securing sufficient raw materials while upholding the trade commitments made during negotiations with the United States.”

While opening its market to more U.S. corn, Thailand has also introduced measures to protect domestic growers. The government will limit the import period to February through June, avoiding overlap with the domestic harvest season, which typically falls in the fourth quarter.

Additionally, feed manufacturers importing U.S. corn must purchase three times the imported volume in locally grown corn, ensuring continued demand for Thai agricultural products.

Thailand consumes around 9 million tons of corn annually, importing 4 to 5 million tons of that total, according to government data.

In a parallel move aimed at reducing air pollution, Thailand will ban feed corn imports from countries practicing slash-and-burn agriculture starting next year. The practice, which involves burning crop residue after harvest, is a major contributor to regional haze and air quality issues.

Currently, Thailand sources most of its imported corn from Myanmar, Laos, and Cambodia, where such farming methods remain widespread. The restriction is expected to decrease demand for corn from these neighboring countries while increasing reliance on U.S. imports.

The policy stems from a bilateral trade deal signed in late July, in which Thailand agreed to abolish tariffs on most U.S. products, while the U.S. reduced duties on Thai goods from 36% to 19%.

On October 26, the two nations finalized an “Mutual Trade Agreement Framework”, outlining further cooperation and non-tariff barrier reductions. Under this agreement, Thailand committed to importing approximately USD 2.6 billion worth of U.S. agricultural goods annually, including feed corn and soybean meal.

Observers view Thailand’s decision as a strategic balancing act between economic pragmatism and environmental responsibility. The tariff elimination aligns with trade liberalization goals, while the import restrictions and sustainability clauses demonstrate a growing emphasis on eco-conscious policy design.

“Thailand’s move shows that agricultural trade policy is evolving beyond import liberalization,” said one trade analyst. “It’s now about integrating climate and sustainability considerations into global trade frameworks.”

Tags: U.S., demand, feed corn, tariffs, Thailand, quota, imports