THAILAND, March 22, 2004 -- The key developments in Thai agricultural trade policy in 2003 are: 1) Tariff reduction for agricultural products and processed foods, including wheat, wheat flour, and peas and lentils; 2) Thai FDA's enforcement of requirements for the Good Manufacturing Practice (GMP); 3) The Thai Royal Government's import ban and a recall action on U.S. beef immediately when finding of a BSE case was reported in late December, 2003; and 4) Thailand's progress in free trade area negotiations particularly with China and Australia. Thai-U.S. Free Trade Agreement is the first-priority FTA negotiations for the RTG in 2004. International trade policies on agricultural products and processed foods may not change much from those in 2003 until an FTA is in place.

JAPAN, March 22, 2004 -- Engineered and kiln dried wood products coming into the Tokyo Lumber Terminal (TLT) in 2003 represented 54.5% of total imports, exceeding 50% for the first time. The leading foreign supplier was Canada, followed by Germany, China, Finland and the U.S. U.S. imports were 19,000 m3, a 23% increase from the previous year.

JAPAN, March 22, 2004 -- Under a liberal equivalency agreement, since April 2002, U.S. organic products may be exported to Japan. The two basic routes to export to and market U.S. organic products in Japan are 1) exporting NOP certified organic products to JAS certified importers, and 2) exporting products certified to JAS in the U.S. by the last producer or manufacturer to handle the product before export. MAFF is in the process of establishing JAS standards for organic animal products

EUROPEAN UNION, March 22, 2004 -- The 2004 EU Budget, adopted in December 2003 and published on February 23, 2004, covers the 15 EU member states. An amending budget, proposed by the European Commission in February 2004, will adapt the budget for the accession of 10 new member states on May 1, 2004 and should apply from that date. The amending budget should be adopted by the Budget Authority before April 16, 2004, just in time for enlargement. All the figures in this report relate to the current 15 member states, unless otherwise specified.

TURKEY, March 22, 2004 -- The Turkish market for consumer food items poses many challenges to the U.S. exporter. A large and growing population is rapidly changing its consumption patterns while maintaining many traditions as well. Still, the vast majority of consumers shop predominantly for locally produced fresh and non-processed ingredients. Historically, there have been more opportunities for U.S. exports of bulk commodities than for high-value products. Opportunities for exporting high-value products are limited by restrictive non-tariff barriers, high tariffs, and competition from domestic and European producers.

CZECH REPUBLIC, March 22, 2004 -- The Czech retail sector is becoming increasingly concentrated with the top ten retailers having 55% market share. Discount, specialized and convenience stores are increasing in number. Ready-to-eat meals have a strong growth potential. About 25% of food products are imported. As consumers become more affluent, quality will become more important. U.S. food exports with good sales potential include dried fruits, nuts, wine, distilled liquors, seafood, rice, sauce, spices, baking mixes, and snacks.

CZECH REPUBLIC, March 22, 2004 -- The Czech Republic is amending the Czech Sugar Act 114/2001 as it prepares to join the EU on May 1, 2004. The quota for MY 2003/04 will remain at 454,862 MT. The domestic portion of the quota will increase from 71% to 95%. The export portion will drop from 29% to 5%. The Czech Republic will join the EU sugar regime in two stages. It will implement EU tariffs for trade with other countries upon accession, and it utilize EU minimum prices, intervention purchases and export subsidies on July 1,2004, the beginning of EU marketing year for sugar. The Czech Republic must count sugar stocks and report to Brussels by May 1,2004.