Malaysia's "unjust" shrimp ban could trigger WTO dispute, minister warns

Thailand’s Commerce Minister Suphajee Suthumpun today criticised Malaysia's sudden ban on five species of Thai shrimp, warning that Thailand could elevate the dispute to the World Trade Organisation (WTO) and regional ASEAN channels if bilateral talks fail.

Speaking to reporters, Suphajee described Kuala Lumpur’s immediate suspension of imports, which took effect on June 1, 2026, as an inappropriate and disproportionate trade barrier.

She argued that regulatory actions should be progressive, moving from lighter to heavier measures, rather than enforcing an outright and abrupt ban, while maintaining that Thai shrimp meet safety standards and are entirely free of issues.

“The fisheries departments of both nations are currently engaged in talks,” she stated.

She also emphasised that, if a resolution cannot be reached through standard agricultural channels, however, Thailand is prepared to launch formal trade retaliation mechanisms in compliance with international law.

The ban prevents roughly 300 to 400 tonnes of Thai shrimp from being exported to Malaysia each month, severely impacting local shrimp farmers and processors, particularly in the southern provinces.

To mitigate the immediate financial shock, the Ministry of Commerce has rolled out a short-term domestic distribution plan to re-route the surplus.

Affected shrimp are being redirected to markets across other regions of Thailand, to avoid oversupply in the south.

The ministry is also collaborating with major modern trade retailers to launch nationwide promotional campaigns to stimulate domestic consumption.

Furthermore, by utilising existing ‘Thai Chuay Thai’ (Thais Helping Thais) networks, the government aims to keep transport costs low.

Suphajee firmly dismissed notions that the government is downplaying the crisis, stressing that she is not saying there is no problem, but rather that the problem exists and the government is actively addressing it.

She added that domestic consumption can comfortably absorb the 400-tonne monthly surplus for the time being.

For the medium and long term, commercial counsellors at Thai embassies abroad have been instructed to source new international buyers urgently, for both processed and frozen Thai shrimp. The goal is to diversify export destinations and eliminate over-reliance on a single neighbouring market.

While offering encouragement to the Department of Fisheries in their ongoing negotiations with Malaysian counterparts, Suphajee reiterated that her ministry’s immediate priority remains safeguarding Thai farmers and stabilising domestic prices.