RP urged to start talks for lower tuna tariff in US, EU

MANILA, Philippines - Philippine trade negotiators should start negotiating for the inclusion of Philippine tuna under the Generalized Scheme of Preferences of both the United States and the European Union, Francisco Buencamino, executive director of the Tuna Canners Association of the Philippines, said yesterday.

In an interview with The STAR, Buencamino pointed out that the country’s GSP quota allocation is set to expire this year. He said the entry of Philippine tuna products to the European Union continues to remain dim due to the preferential tariff treatment extended to tuna imports from ACP countries.

ACP countries include those in Africa, the Caribbean and Pacific Islands, which enjoy a preferential zero percent tariff on their tuna exports to the EU compared to the 24 percent slapped on Philippine tuna exports to the EU, except for a specified 9,000 tons under a Tariff-Rate Quota which is entitled to a 12 percent rate.

The ACP countries have closer ties with the EU because they used to be former colonies.

The Philippines, while colonized by Spain, which is part of the EU, is more closely identified to its US colonizers.

According to Buencamino, there still appears to be no inclination on the part of the EU to lower the 24 percent tariff on Philippine tuna imports. Because of this, Philippine trade negotiators should work harder on getting a higher GSP quota allocation for tuna products to both the US and EU, he added.

Under the GSP, the preferential tariff for the US is three percent while that for EU is 3.5 percent.

Buencamino said The Philippine tuna industryis encountering more pressure as supply continues to thin out especially since Filipino fishermen are no longer able to fish in waters shared with Indonesia and must instead venture out further to Papua New Guinea. As a result, he said prices are going up.

Another approach Philippine trade negotiators could take is appeal for a parity adjustment by the EU whereby the ACP countries would be slapped with a 12 percent tariff and the 24 percent tariff imposed on Philippine tuna imports be reduced to 12 percent, Buencamino said.