EC agrees to talks over lower tariff on RP tuna

The European Community (EC) has finally agreed to participate in a mediation process to be brokered by a representative of the World Trade Organization (WTO) to lower tariff rates for a limited volume of Philippine tuna shipments to the EC.

This was disclosed yesterday by Trade and Industry Secretary Manuel Roxas II who said that during the recent round of consultations, the Philippines, Thailand and the EC jointly agreed to resort to mediation to settle the issue concerning tariff rate quotas for a limited volume of EC imports of canned tuna.

The mediation process is expected to start in early May.

The EC currently purchases tuna from its former colonies in Africa tax-free in order to support these countries. Tuna from the Philippines and Thailand are slapped a 24-percent tariff.

The Philippines and Thailand are both seeking ways to lower the EC tariff on canned tuna to be able to remain competitive in the European market.

Earnings from tuna exports, with canned tuna contributing bulk of the total, amounted to between $100 million and $200 million annually.

Exports of canned tuna alone earned some $70 million last year.

Overall, tuna exports peaked in 1998 with total shipments amounting to $203 million.

Meanwhile, Roxas also presented to US Assistant Trade Representative Ralph Ives the country’s concern about the potential impact of the proposed Andean preferential trade legislation on the Philippines’ canned tuna exports to the US.

The Andean preferential trade agreement will allow tuna exports from Colombia, Bolivia, Peru, Ecuador and Venezuela to enter the US market tax-free.

In the US market, Philippine canned tuna in oil is currently slapped a 35-percent tariff, while canned in brine faces a tariff rate of between six percent and 12.5 percent.