A technician (left) tesst for chemical residue in vegetables at Talat Thai, a large vegetable and fruit wholesale market in Bangkok.Supplying unsafe produce attracts a fine of 20,000 baht and/or imprisonment.

Consequently, they are introducing more non-tariff barriers, mainly in the form of tougher standards for selected imported goods.

Food safety concerns among consumers are commonly cited as the basis for tighter requirements, notably in the European Union, where Thai shrimps and poultry were found in 2002 to contain residues of nitrofurans and chloramphenicol, two chemicals used in animal feed but now banned.

Thai exporters are becoming painfully aware of the consequences of not keeping abreast of and complying with new standards in other countries. Soon they likely will face more non-tariff barriers related to issues such as animal welfare or environmental conservation.

Members of the Thai Marine Shrimp Farmers' Association empty powdered milk, produced in Europe, claiming it was contaminated by chemicals in mid-October. The group said it had sent samples of the milk to be tested by China's Food and Drug Adminstration, which found residue of chloramphenicol, an animal antibiotic banned for human consumption.

In the shrimp case, the Thai government discussed with the EU how to solve the problem. The cabinet then announced it would prohibit the use of 16 banned chemicals in the livestock and feed industries. The imports of some chemicals would still be allowed but only with the approval of the Food and Drug Administration.

Thailand also agreed to buy new testing machines from the Netherlands to test Thai products before they are exported to make sure that ocal officials would be able to detect, to the same precise levels as their European counterparts, any chemical residues.

Both sides agreed that from Sept 21, no Thai exports could return positive results in tests, said Chaveevarn Chandanabhumma, Minister (Commercial) to Brussels.

Thai farmers and traders complained that the EU applied zero-tolerance requirements that were higher than accepted international standards. They also said that the EU discriminated against Thailand, when compared to other shrimp-supplying countries such as Vietnam and Brazil, which only had to pass random inspections.

The EU countered that the chemical-positive results in Thailand came from many sources, reflecting widespread chemical abuse, while other countries had shown problems in limited areas, which could be easily controlled.

There were unconfirmed reports that the EU may resume normal random inspections of 10% of shrimp shipments in 2003 but the situation would depend on results from residue testing, according to an EU official.

The government is encouraging Thai shrimp farmers to adopt a Code of Conduct and not use banned chemicals or even produce bio-shrimps. By adhering to the code, farmers would automatically overcome any sanitary barriers imposed by importing countries.

The French government has actively assisted the Thai Fisheries Department in training shrimp farmers to ensure the environmentally friendly raising of hygienic marine shrimps at every step of production, from hatcheries to farming and harvesting.

The shrimps are processed in factories that have Hazard Analysis Critical Control Point certification and will carry the ``Thai Quality Shrimp'' label. This label woujld indicate to importers that the quality of Thai products was up to the standard accepted in the EU, said Waraporn Prompoj, senior fisheries biologist from the Fisheries Department's Marine Shrimp Research and Development Institute.

Not only is the EU imposing stricter requirements on food products, the United States also introduced a new Public Health Security and Bioterrorism Preparedness and Response Act in June, granting more authority to the US Food and Drug Administration to check shipments of food from other countries. The law was a response to concern about security following the Sept 11 attacks in 2001.

Although Laem Chabang port in Thailand is one of 20 ports accredited by the US to apply the new cargo inspection system, Thai exporters worry about the increased costs and more complicated procedures for shipping Thai products to the US market.

The Trade Negotiations Department has also expressed concern that if Thai products get labelled ``United States: Refused Entry'', other countries may also begin rejecting Thai products.