Regulations in Shrimp Trade

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Regulations in Shrimp Trade

• Helga Josupeit
• September 2006

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Presentation will cover

• Free Trade Agreements of main importing nations
• USA
• EU
• Japan
• Tariffs
• EU
• Japan
• USA
• Other issues

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Free Trade Agreements - USA

• Israel (1985)
• Chile (2003)
• Australia (2004)
• Central America-Dominican Republic-(2004)

• Jordan (2000)
• Singapore (2003)
• Bahrain (2004)
• Morocco (2004)

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Free Trade Agreements - USA

• US Andean countries FTA still under discussion,
  Peru signed FTA in June 2006
  
• US Panama FTA still under discussion
• U.S. and Southern African Nations Plan for
  Upcoming FTA Negotiations

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Free Trade Agreements and GSPs- EU

• ACP
• Andean Community
• Central America
• Mexico
• Chile
• SGP

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Free Trade Agreements Japan

• Mexico-Japan Free Trade Agreement signed in April
  2005
  
• Japan-Philippines Economic Partnership Agreement
  to be signed soon
  
• Japan-Singapore Economic Partnership Agreement,
  signed in December 2002
  
• Thailand-Japan FTA under discussion
• Indonesia-Japan FTA under discussion
• Chile-Japan FTA under discussion

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Tariffs

• USA
• http//www.usitc.gov/tata/hts/bychapter/index.htm
  
  
• Japan http//www.apectariff.org/tdb.cgi/ff3235/ape
  ccgi.cgi?JP
  
• EU http//www.europa.eu.int/comm/taxation_customs/
  dds/en/tarhome.htm

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Tariffs for shrimp- USA

• Tariffs in the US market for shrimp
• 0 tariff for all frozen products
• 5 tariff, when canned with fish meat
• ) except for the anti-dumping tariffs.

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US anti-dumping

• Against countries selling at a price below
  domestic prices
  
• Obvious difference between the US definition of
  dumping and the WTO definition
  
• Thailand filed a complain to the WTO in March
  2006, Ecuador, India and Japan watch the issue.

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US anti-dumping

• Countries affected
• Brazil up to 67.8
• Ecuador 2.00-3.25
• India 5.02-15.36
• Thailand 5.79 - 6.82
• China 27.89 -82.27
• Viet Nam 12-93

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US anti-dumping

• SSA signed agreements with companies which avoid
  re-investigation and maintain their present tax
  
• 19 companies from Viet Nam
• 12 companies from Thailand
• 4 companies from Ecuador
• 1 company from India

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Other issues

• Country of origin labeling in USA
• In September 2004, Wild American Shrimp Campaign
• Antibiotics levels in shrimp
• TEDs are still there

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Tariffs - EU

• EU tariffs are 18 for frozen Crangon crangon,12
  for other frozen shrimp and 20 for canned
  shrimp
  
• Certain tariff reductions are applied

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Tariffs - EU

• EU tariffs are 18 for frozen Crangon crangon
  is reduced to 0 for Algeria, Andorra, Bulgaria,
  Ceuta, Croatia, Macedonia, Iceland, Jordan, Loma,
  Lomb, Lebanon, Melilla, Morocco, SPGA, San
  Marino, Tunisia, Turkey.
• this tariff is reduced to 11.5 for Chile, 7.2
  for Mexico, 4 for Romania, 3.6 for SPGE and
  14.5 for SPGL

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Tariffs - EU

• EU tariffs are 12 for frozen shrimp other than
  Crangon crangon
  
• this tariff is reduced to 0 for Algeria,
  Andorra, Bulgaria, Ceuta, Chile, Croatia,
  Macedonia, Iceland, Jordan, Loma, Lomb, Lebanon,
  Melilla, Mexico, Morocco, SPGA, San Marino,
  Tunisia, Turkey.
• this tariff is reduced to 3 for Romania, 3.6
  for SPGE and 4.2 for SPGL

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Tariffs - EU

• EU tariffs are 20 for canned or other preserved
  shrimp
  
• this tariff is reduced to 0 for Algeria,
  Andorra, Bulgaria, Ceuta, Croatia, Macedonia,
  Iceland, Jordan, Loma, Lomb, Lebanon, Melilla,
  Mexico, Morocco, SPGA, SPGE, San Marino, Tunisia,
  Turkey.
• this tariff is reduced to 1.4 for Chile, 5 for
  Romania and 7 for SPGL (excl. Brazil)
  
• this tariff is 0 for Norway for 8000 tonnes and
  Faroe Islands for 3000 tonnes.

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Other issues

• Detention of shrimp with antibiotics in EU (at
  present finished, but might come back)
  
• China (mainland and Taiwan)
• Thailand
• Indonesia
• India
• Philippines
• Viet Nam
• Bangladesh
• and others more

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Tariffs and Free Trade Agreements Japan
Tariffs in Japan are 1.8 for fresh, 4.8 for
cooked shrimp, and 6 for frozen and canned
shrimp Japan To Eliminate Tariffs On Mexican S
hrimp

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Other issues

• All shrimp imported into Japan must be labelled
  with details of its origin
  
• Antibiotics research enforced 100 investigation
  on Vietnamese shrimp, looking for chloramphenicol

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Traceability
(1) Recall and withdrawal can become compulsory
if a responsible company does not take action.
(2) Includes the possibility of mandatory
disposal, recall and withdrawal, legal and police
actions but primary purpose is prevention.
(3) Includes the possibility of mandatory
disposal, recall and withdrawal and
administrative actions, but primary purpose is
consumer assurance
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Traceability (cont.)
(4) Could include voluntary (contractual) recall
and withdrawal and agreed (contractual)
sanctions. (5) EAN.UCC (European Article Numberin
g.Uniform Code Council) System standardizes bar
codes (6) TRACEFISH, Traceability of Fish Produc
ts (EC funded project)/ (7) SSCC Serial Shippi
ng Container Code (UCC)
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Traceability labelling- EU

• Name of species
• Way of production wild versus aquaculture
• Ocean of origin in the case of marine capture -
  or country of origin in the case of aquaculture
  or inland capture
  

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Conclusions

• Anti-dumping tariffs in the USA is the big issue
  at the moment
  
• Antibiotics detention in the EU have smoothened
  recently, as producing countries have improved
  their control system
  
• Consumers have the final say on quality and
  origin, including environmental concerns
  

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Conclusions (cont.)

• Tariffs have been reduced, and are relatively
  unimportant, especially in the USA and Japan
  
• In the EU they are still high, and have not been
  reduced under the WTO. At the moment there is a
  partial suspension and reduction by about 66

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Conclusions (cont.)

• EU traceability the possibility to find and
  follow the trace, throughout all the stages of
  production, processing and distribution of a
  foodstuff, feedstuff, an animal destined for food
  production or a substance destined to be
  incorporated in foodstuff or feedstuff or with a
  probability of being used as such
• traceability is one step forward, one step back

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Thank you