Regulations in Fish Trade

1
Regulations in Fish Trade

• Helga Josupeit
• June 2006
• TCP/RAS/3011

2
Presentation will cover

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

3
Free Trade Agreements - USA

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

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

4
Free Trade Agreements - USA

• US Andean countries FTA still under discussion
• US Panama FTA still under discussion
• U.S. and Southern African Nations Plan for
  Upcoming FTA Negotiations

5
Free Trade Agreements USA and fisheries

• Andean Community countries only tuna in pouch
  has duty free entry into USA
  
• Free Trade Treaty for Central American countries
  0 tariff for tuna in oil, 1-2 for other
  canned tuna
  
• NAFTA

6
Free Trade Agreements USA and fisheries (cont.)

• Discussion on Free Trade Agreement with Thailand,
  and implications for domestic (American Samoa)
  tuna canneries
  
• 0 duty for Australian canned tuna

7
Free Trade Agreements and GSPs- EU

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

8
GSP EU and participating countries

• ACP PNG, Solomon Islands
• SGPA Bangladesh, Solomon Islands, Maldives,
• SGPE Sri Lanka
• SGPL India, Indonesia, PNG, Thailand, Malaysia,
  Pakistan

9
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

10
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

11
Tuna
12
Tuna Tariffs - USA

• classical 6 on canned tuna in brine imports,
  up to a quota, 12.5 when quota is filled (2004
  quota was 23 000 tonnes)
  
• Tuna in oil has a tariff of 35
• Andean Community countries only tuna in pouch
  has duty free entry into USA
  
• Free Trade Treaty for Central American countries
  0 tariff for tuna in oil, 1-2 for other
  canned tuna
  

13
Tuna Tariffs - USA

• INFOFISH member countries have the following
  tariffs for
  
• canned tuna in brine 6 until quota is filled,
  12.5 thereafter
  
• canned tuna in oil 35
• tuna pouch 6 until quota is filled, 12.5
  thereafter
  
• tuna loins 1.1cent/kg, In bulk or in immediate
  containers weighing with their contents over 6.8
  kg each, 6 otherwise
  

14
Tuna Tariffs EU

• EU tariffs are 18 for frozen whole tuna
  (suspended, that means real duty is zero) and 24
  for tuna loins and canned tuna
  
• SPGA zero
• SPGE zero
• SPGL 20.5

15
Tuna Tariffs - EU

• New EU members had to increase duty to 24 for
  all canned tuna imports
  
• Thailand, Philippines and Indonesia got a 12
  tariff quota (about 25 000 tonnes per year) until
  July 2006
  
• Mexico import quota at 7.9 4500 tonnes

16
Tariffs EU canned tuna

• Indonesia, 2833 tonnes of canned tuna quota at
  12, afterwards 20.5
  
• Thailand, 13390 tonnes of canned tuna quota at
  12, afterwards 20.5
  
• India, Malaysia, and Pakistan (and many others)
  257 tonnes of canned tuna quota at 12,
  afterwards 20.5
  
• Bangladesh, Sri Lanka and Maldives 0

17
Tuna Tariffs Japan

• Reduction of tariffs for tuna
• fresh and frozen tuna from 10 to 5 under the
  GATT agreement, and now to 3.5
  
• Canned tuna from 20 to 15 under the GATT
  agreement, and now to 9.6, and even as low as
  6.4 or free for special concessions
  

18
Tariffs and other trade issues Japan

• Organization for Promotion of Responsible Tuna
  Fisheries (OPRT)
  
• Positive Listing in Japan
• both for wild (November 2003)
• and farmed tuna (August 2004)

19
Other issues

• Carbon monoxide use prohibited in the EU
  (outlawed since decades, but enforcement started
  since early 2004) but some confusion
  
• Carbon monoxide use prohibited in Japan (since
  1997)
  
• GRAS status in USA but under discussion
• Use of hydro protein in canned tuna not allowed
  in the EU (December 2003)
  

20
Other issues

• Methyl-mercury warning in USA, UK and Ireland
• US Tuna Foundation advertising campaign Tuna.
  Smart Catch
  
• Country of origin labelling in USA
• DNA testing on false tuna in Japan
• All tuna In Japan must be labelled with
  details of its origin

21
Conclusion for tuna

• Tariff reduction is a fact and investors and
  canners have to be aware of it
  
• Already now companies are investing in those
  countries where lower tariffs exist
  
• It is an illusion to fight for tariff protection
  in order to protect ones industry
  
• Consumers will have the final say on quality and
  origin, including environmental concerns
  

22
Shrimp
23
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.

24
US anti-dumping

• Against countries selling at a price below in
  domestic (US) production 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.

25
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

26
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

27
Other issues

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

28
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

29
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

30
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

31
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.

32
Tariffs EU

• Indonesia, Thailand, India, Malaysia, and
  Pakistan 14.5 for frozen Crangon crangon
  exports 4.8 for other frozen shrimp and 7 for
  canned shrimp
• Bangladesh, PNG, Solomon Islands and Maldives 0
• Sri Lanka 3.6 for frozen shrimp and 0 for
  canned shrimp

33
Tariffs - EU

• New EU members had to increase duty to same level
  as EU since May 2004
  

34
Traceability - 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
  

35
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

36
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 Shrimp

37
Other issues

• All shrimp imported into Japan must be labelled
  with details of its origin
  
• Antibiotics research enforced

38
Conclusions for shrimp

• 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
  
• As for tuna, consumers will have the final say on
  quality and origin, including environmental
  concerns
  

39
Conclusions for shrimp

• 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,
  but this could be revised upwards again in early
  2006.

40
Cephalopods
41
Tariffs - USA

• Tariffs in the US market for cephalopods
• 0 tariff for all frozen and canned products

42
Tariffs - EU

• EU tariffs are 8 for fresh and frozen
  cuttlefish, with the only exception of frozen
  Sepiola rondeleti where the tariff is 6
  
• EU tariffs are 6 for fresh and frozen Loligo
  squid, and 8 for other fresh and frozen squid
  
• EU tariffs are 8 for fresh and frozen octopus
• EU tariffs are 20 for canned cuttlefish and
  squid
  

43
Tariffs EU fresh and frozen cephalopods

• Indonesia, India, Malaysia, Pakistan and Thailand
  always at highest tariff foreseen
  
• Bangladesh, Sri Lanka and Maldives 0

44
Tariffs EU canned cephalopods

• Indonesia, India, Malaysia, and Pakistan 7
• Bangladesh, Sri Lanka and Maldives 0
• Thailand 20

45
Tariffs Japan

• Reduction of tariffs for cephalopods
• fresh and frozen squid and cuttlefish from 5 to
  3.5 under the GATT agreement
  
• fresh and frozen octopus from 10 to 7 under the
  GATT agreement (other octopus from 15 to 10)
  
• Canned cephalopods from 15 to 10 under the
  GATT agreement
  

46
Conclusions - cephalopods

• Canned cephalopods have relatively high tariffs
  in the EU and Japan, while fresh and frozen
  cephalopods demand relatively lower tariffs.
  
• Cephalopods are not a top item in trade
  discussions or dispute settlements in the WTO,
  being a relatively unimportant and quite closed
  sector.

47
Conclusions cephalopods (cont.)

• It has also to be considered that the domestic
  cephalopod industry in the main consuming
  countries is declining, so that more products
  have to be imported, which will lead to a
  reduction of tariffs
• cephalopods are not cultured, which excludes the
  whole discussion on anti-biotics and good
  aquaculture practices so important for other
  commodities

48
Groundfish
49
Tariffs - USA

• Tariffs in the US market for groundfish
• 0 tariff for all fresh and frozen groundfish
  products
  
• Fish sticks and similar products of any size or
  shape, fillets or other portions of fish, if
  breaded, coated with batter or similarly
  prepared
• Neither cooked nor in oil 10
• other 7.5

50
Tariffs - EU

• EU uses a reference price system for cod (euro
  1067/tonne) and a tariff of 3
  
• 15 for fresh hake, but 0 for a quota of 20000
  tonnes of frozen hake
  
• 7.5 for certain other groundfish and fillets
• value added groundfish (Fillets, raw, merely
  coated with batter or breadcrumbs, whether or not
  prefried in oil, frozen) 7.5
  

51
Tariffs - EU

• Pakistan, India, Indonesia, Malaysia and
  Thailand have the highest tariff for whole and
  fillets of groundfish
  
• Bangladesh, Sri Lanka and Maldives 0

52
Tariffs EU value added products

• Indonesia, India, Malaysia, and Pakistan 4
• Bangladesh, Sri Lanka and Maldives 0
• Thailand 7.5

53
Tariffs Japan

• Reduction of tariffs for groundfish
• fresh and frozen whole groundfish from 5 to
  3.5 under the GATT agreement
  
• for frozen fillets of cod and hake 10
• for some products the tariff is zero for
  developing countries
  
• value added groundfish 9.6

54
Conclusions - groundfish

• There are many different tariffs for groundfish
  products, which reflect the need of the national
  processing industry to be protected or to source
  raw material for its processing industry
• value added fillets (breaded, coated, etc.) have
  high tariffs, preventing imports of these
  products.