Tuna exporters seek higher EU quota at low tariff

The local tuna sector is urging the Department of Agriculture (DA) to renegotiate with the European Commission (EC) for an increase in the volume of canned tuna shipments enjoying a lower duty of 12 percent.

The EC earlier announced it rejected a request by the Philippines for a higher tuna allocation at the reduced tariff of 12 percent. The lower tariff for Philippine exports of canned tuna to the European Union (EU) market is projected to boost the country’s shipments by as much as 20 percent annually.

Currently, the EU allocates a quota of 25,000 metric tons (MT) annually at 12 percent duty for imports of canned tuna from the Philippines, Thailand and Indonesia. The Philippines’ share of the quota is 9,000 MT, 13,000 MT for Thailand, 2750 MT for Indonesia and 250 MT for others. Beyond this allocation, tuna exporters pay a 24 percent duty.

EC deputy head of the EC in the Philippines said the request to raise tuna quota of the Philippines was junked because the EU cannot justify an increase in the volume of canned tuna shipments at 12 percent duty because the 9,000 MT allocation was not even met in the previous quarter.

The EC allows a certain volume of canned tuna shipments at lower tariff provided that export allocations from non-preferred countries hike their exports by at least three percent starting 2004 with a margin of adjustments from 2005 to 2007.

Local tuna fishing operators and canners refuted the EC’s claim.

"We in fact, want a higher allocation because the current allocation of 9,000 tons is just good for two weeks and we can export more than that especially if they give us the preferential lower duty of 12 percent," said Rudy Rivera, director of the the General Santos-based Socsargen Federation of Fishing and Allied Industries Inc.

Rivera explained that the tuna fishing operators and tuna canners will be pushing hard to finally gain greater market access to the EU market.

"Our government representatives should press for an increase in our tuna allocation at the lower duty of 12 percent. Right now, it is difficult for us to compete with our competitors enjoying a zero percent duty while all our exports exceeding 9,000 tons are slapped a higher 24 percent duty," said Rivera.

Currently, local tuna fish processors are exporting to Europe, US, Japan and neighboring countries. The annual tuna catch, at about 400,000 MT, earns export revenues of about $420 million annually from shipments of canned tuna, high value sashimi tuna and tuna steak.

The industry however, is facing tougher competition with the major markets like the EU and the US, favoring tuna suppliers from Central America, African, the Caribbean and Andean countries.

Moreover, Spanish and Italian tuna canners are crafting a new fisheries code for the region this year that would effectively keep out tuna exports from ASEAN tuna producers like the Philippines.

"In the next few years, ASEAN tuna suppliers like the Philippines could see their market share declining as there are various measures being done to keep us out of their shores," said Francisco Buencamino, president of the Tuna Canners Association of the Philippines (TCAP) in a previous interview.