Brussels, 17/07/2007 (Agence Europe) - Invited to take the floor on Tuesday at the European Parliament's international trade committee, Juan Vieites Baptista de Sousa, President of Eurothon - a body that defends the interests of the tuna industry in Europe, Africa and Latin America - warned against the “disastrous effects” that a potential reduction of the EU's tariff on canned tuna imports under the current WTO negotiations could have for the European and ACP canned tuna industry. This tariff is imposed on imports from third countries other than ACP countries, mainly South East Asian countries. Explanations were given:
Over half of the European canned tuna market is supplied by European producers, namely Spanish, Italy, Portuguese, French and British in declining order of importance. For the other half, the Union receives imports, two-thirds of which are from 14 ACP countries, with Latin and Central American countries enjoying a zero tariff for their products on the Community market in accordance with the EU's generalised system of preferences (GSP). The remaining one third of imports is made up of products from South East Asia, mainly Indonesia, Philippines and Thailand, subject to an import tariff of 24%.
Under the current WTO negotiations, fisheries products are treated like industrial goods under the Non Agricultural Market Access (NAMA) chapter. Within NAMA negotiations, agreement on industrial tariffs, which is based on a highly complex “Swiss formula” with two separate tariff reduction coefficients applicable, on one hand, to the developed countries and, on the other, to the developing countries, would entail a de facto reduction in the tariff applied by the Union on imports of canned tuna from third countries other than ACP countries. According to Eurothon, application of the “Swiss formula” with a coefficient of 10 for the rich countries, including the Union, will mean a reduction in the 24% tariff applicable to imports from Asian countries that do not enjoy the GSP, ranging between 7 and 9%. The almost systematic and immediate consequence of this would be an increase in imports from South East Asia, which would be detrimental to the market shares of ACP and European producers.
“If the EU tariff is reduced, the activities of Eurothon members in GSP+ countries will not be able to face the competition of Asian countries, which enjoy low labour costs, cheaper access to raw materials and maritime transports, and already have a 30% market share in the EU. This would have a disastrous effect on the economies of some countries which are amongst the poorest in the world, to the sole benefit of a few Asian countries, which would become the international hub of canned tuna”, Mr Vietes states in a press release. Speaking before the EP's international trade committee, the president of Eurothon also pointed a finger of blame at the doubtful performance of Asian countries when it comes to health requirements and unlawful fishing. The European tuna industry would not be spared either. In total, a tariff reduction applicable to canned tuna imports into the Union under the Doha regime could put at risk the balance of socio-economic activity that is both sizeable and vulnerable, based on 75,000 direct jobs and over 500,000 persons involved directly or indirectly in Europe, Africa and Latin America.
While highlighting similar risks in the ongoing negotiations for a bilateral EU-ASEAN free trade agreement, Eurothon subsequently called on the Union to avoid any bilateral or multilateral tariff dismantling that could lead to an inexorable advantage to South East Asian countries to the detriment of European and ACP producers. The only solution envisaged by Eurothon is the complete exclusion of tuna and pastes from the NAMA chapter in the Doha negotiations, and the maintaining of customs duty of 24% on imports from third world countries other than those from the ACP and Latin America. Mr Vieites emphasised to MEPs that “fisheries products should be treated as sensitive products. It would be more logical to draw a parallel with agricultural negotiations”.
Following the letter sent to Peter Mandelson on 15 June, Eurothon has still not had the opportunity to present its grievances to the very much sought after commissioner for trade. The association, however, is not giving up hope of meeting the pilot of EU trade policy in the autumn. On the other hand, to the great regret of members of the international trade committee and its German president Helmut Markov (GUE), no European Commission expert was able to respond to their concerns. (eh)