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THE
local tuna sector is urging the government to speed up
its negotiations for compensation from the European
Union (EU) following the loss of its duty-free privilege
for tuna exports after the economic bloc expanded to 27
members last year.
The Tuna
Canners Association of the Philippines (TCAP) said the
resolution of the compensation issue is crucial as they
now pay 24 percent duty for tuna exports in at least two
new EU members, including the Czech Republic.
“We hope
that the government could fast-track the negotiations as
we are now paying duties [when we export] to at least
two EU countries,” said TCAP executive director
Francisco Buencamino.
Buencamino disclosed that the Philippines enjoyed
duty-free privilege for tuna exports to the
Czech Republic
prior to its membership to the EU.
The 10
countries that acceded to the EU last year are Estonia,
Latvia, Slovakia, Lithunia, Slovenia, Malta, Cyprus,
Poland, Hungary and the Czech Republic.
Under
the rules of the World Trade Organization (WTO), the EU
must offer compensation for imported items that were
slapped higher tariff rates after the EU’s expansion.
TCAP
noted that
Thailand,
the world’s biggest tuna exporter, has already been
compensated by the EU by allowing the duty-free export
of 1,816 metric tons (MT) of canned tuna annually to the
EU market. The WTO, however, has yet to act on the
Philippines’ compensation claims.
Buencamino said raising the country’s tuna export
allocation that enters the EU at 12 percent duty could
serve as a form of compensation.
Tuna
exporters were earlier pushing for a 100 percent hike in
the country’s allocation to make local tuna exports more
competitive against those exported by African, Caribbean
and Pacific (ACP) countries that were allowed to export
duty-free.
But the
European Commission has earlier thumbed down the
Philippines’ request for a higher tuna allocation,
saying there has been no marked increase in the
country’s tuna exports to the EU market that would
justify the need for a higher allocation.
Currently, the EU allows the
Philippines,
Thailand and Indonesia to export 25,000 metric tons (MT)
of tuna per year at a reduced rate of 12 percent.
The EU
allocated 9,000 MT for the Philippines, 13,000 MT for
Thailand and 2,750 MT for Indonesia and about 250 MT for
other countries starting July 2003. Shipments exceeding
the 9,000 MT allocated for the Philippines are slapped a
24 percent duty.
The
Philippines exports about $250 million worth of canned
tuna each year. The country’s other major markets for
tuna are the US, Singapore, Japan and Canada.
The
country’s tuna exports vary from fresh, chilled, frozen,
dried, smoked to canned tuna. It is considered the
country’s second biggest marine products export with a
25-percent share, next to shrimps and other marine
products. |
