According to Trade and Industry Secretary Manuel Roxas II, the Philippines’ share of the canned tuna market in the US is a mere 18 percent compared to Thailand’s 60 percent, Indonesia’s 12 percent, Papua New Guinea’s four percent and Ecuador’s two percent.
Such meager share, Roxas revealed, is even in danger of being eroded due to the Andean Trade Preferences Expansion Act.
The Andean Trade Preferences Expansion Act would expand preferential trade treatment of countries in the Andean region in order to wean them away from production of narcotic crops.
The Andean Trade Act, Roxas said, would grant zero tariff treatment to US imports of canned tuna from the Andean region countries.
Philippine canned tuna, on the other hand, Roxas said, is slapped a 6.5-percent tariff up to the first 200,000 cans.
Beyond 200,000 cans, Roxas said, the tariff rate pumps up to 12.5 percent if its packed in water and brine.
If the tuna is packed in olive oil, the tariff rate goes up to 30 percent.
Roxas argued that if the US is willing to extend preferential tariff treatment to Andean region countries helping the US fight narcotics, then the US should extend preferential tariff treatment to the Philippines which is fighting its war against terrorism.
According to Roxas, the US says, ‘fight narcotics,’ and we will help your country. Okay. We say, "aren’t we your ally against terrorism?" We fight terrorism, so help us also.
Once the Andean Trade Act is implemented, Roxas warned, the provinces in Mindanao would be affected specifically, Zamboanga and General Santos City.
Roxas said he would raise the matter to US Trade Representative Robert Zoellick during the ASEAN Economic Ministers Meeting in Bangkok, Thailand from April 4 to 5.
Aside from the tuna issue, Roxas said the meeting in Bangkok would also tackle the forthcoming implementation of the ASEAN Free Trade Agreement and the proposals of China and Japan for their inclusion in the free trade area.
The ASEAN ministers would also take up with Zoellick the recent imposition by the US of tariff on steel imports and what this means regarding the US commitment with the World Trade Organization.