TARIFFS

1
TARIFFS TECHNICAL BARRIERS TO TRADE IN THE
SHELLFISH SECTOR

• CLIFF MORRISON
• CHAIR
• UK ASSOCIATION OF FROZEN FOOD PRODUCERS
• FOOD DRINK FEDERATION SEAFOOD GROUP

2
RELATIONSHIP BETWEEN UKAFFP FDF

• UKAFFP INTEGRATION PROGRAMME INTO FDF
• COMMENCED JULY 2003
• COMPLETION DECEMBER 2004
• DEVELOPMENTS SO FAR
• FDF MEAT GROUP CREATED
• FDF SEAFOOD GROUP CREATED
• FDF SEAFOOD GROUP
• SECRETARIAT LOCATED IN SFDF OFFICES IN EDINBURGH
• WIDE MEMBERSHIP BASE FISH, SHELLFISH, IMPORTERS

3
TARIFFS TECHNICAL BARRIERS TO TRADE IN THE
SHELLFISH SECTOR

• OUTLINE OF GLOBAL TRADE DEVELOPMENTS AND THE FOOD
  INDUSTRY
• REVIEW OF TARIFF STRUCTURES TRADE ISSUES AT EU
  LEVEL
• PLACE SOME RECENT EVENTS IMPACTING TRADE IN
  SHELLFISH IN EU UK CONTEXT.

4
GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• Post 1945 Globalisation Initiatives
• 1945 United Nations (UN) founded
• 1945 Food Agriculture Organisation (FAO)
  founded
• Remit
• Nutrition
• International Food Standards
• 1948 World Health Organisation (WHO) founded
• Remit
• Human Health
• Establishment of Food Standards
• 1961/63 Codex Alimentarius founded by FAO/WHO
• Development of international Food Standards

5
GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• General Agreement on Trade and Tariffs (GATT)
  Established 1947
• Uruguay Round Talks
• Recognised potential for national food, plant and
  animal standards to be disguised barriers to
  trade
• Paved the way for creation of the World Trade
  Organisation
• NB. Uruguay Round led to general reduction in
  world tariffs of 36 with specific minimum
  reductions of 15

6
GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• 1994 GATT Marrakesh Agreement on trade in goods
• WTO established
• The agreement on the application of sanitary
  phytosanitary measures (SPS) established
• The agreement on technical barriers to trade
  (TBT) established.

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GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• The SPS Agreement
• Recognises rights of governments to take measures
  to protect consumer health
• Requires governments to apply measures only to
  the extent required to protect human health
• Does not allow governments to discriminate by
  applying different standards to different
  countries for the same issue, unless sufficient
  scientific reason.

8
GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• The TBT Agreement
• Seeks to ensure that technical standards and
  regulations do not cause unnecessary barriers to
  trade
• Packaging
• Marking and Labelling
• Analytical Protocols

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GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY
The Link Between Science, Standards and Freer
Trade

• FAO/WHO
• International standards bring
• Harmonised national laws
• Fewer trade barriers
• Freer movement of foods
• Reduction in hunger poverty

• GATT/WTO
• SPS TBT agreement to freer trade
• Resolution of disputes
• Bilateral trade agreements
• Mercosor
• APEC
• NAFTA

Need for Transparent Standards Impartial
Science Codex Other Multilateral bodies
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GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• CODEX STANDARDS
• Commodity Standards
• Fish Fishery Products
• General Standards
• Food labelling
• Food additives
• Food contaminants
• Food hygiene
• Food import export inspection certification
• Residues veterinary drugs in foods
• NB. CODEX standards heavily influence EU
  legislation and vice versa

11
GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• WTO
• Following the GATT Uruguay Round Tariff
  Reductions
• World trade grew 20-25 from 1988 97
• EU agricultural trade grew by 70
• EU processed food trade grew by 140
• UK exported 8.8bn in 1999, 3.26bn outside EU
• WTO
• Intergovernmental policy meetings affected by
  anti-globalisation groups alliances of
  countries
• Seattle had fish fishery products high on
  agenda
• DOHA

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GLOBAL TRADE DEVELOPMENT THE FOOD INDUSTRY

• Other issues impeding progress to freer trade
  being addressed at WTO
• - Antiglobalisation movement
• - Promotion of developing countries
• - Environmental policies
• - Country alliances and demands
• - National politics
• - Agricultural policies
• - Bilateral free trade policies
• - Anti-dumping and safeguard measures

13
REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• EU AND WORLD TRADE
• FDF POSITION
• TARIFF QUOTA SYSTEM
• GENERAL SYSTEM OF PREFERENCES (GSP)
• SAFEGUARD MEASURES

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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• EU WORLD TRADE POSITION
• Export Development
• Aim is removal/reduction of export subsidies
• Imports
• Continued reduction of tariffs
• Removal of all tariffs for least
  developed/developing countries (LDDC)
• The everything but arms policy
• Reciprocal arrangements phased
• Retention of safeguard measures
• Domestic support
• CAP support shift to environmental subsidy

15
REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• EU World Post GATT Uruguay Round
• Period 1988 1997
• Tariff cuts 36 with minimum 15 on specific
  goods
• World trade growth 20-25
• EU agricultural growth 70
• EU processed food growth 140
• UK food exports to EU in 1999 - 5.5bn
• UK food exports to outside EU in 1999 - 3.3bn

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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• EU and world trade
• FDF Position
• Improved export market access for processed foods
• Phased removal of export subsidies
• Sound science (SPS)
• FDF Seafood Group Position
• Removal/reduction tariffs on seafood imports for
  processing
• Clearly defined end-use criteria for imports for
  processing
• Developing UK national position within EU
• Transparency on safeguard measures

17
Total Shellfish Imported into the UK (Value)
year 2003
Total shellfish imported into the UK 414m
Information compiled by Seafish
18
Total Shellfish exported from the UK (Value)
year 2003
Total shellfish exported from the UK 333m
Information compiled by Seafish
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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• Purpose of Tariff Duties
• To protect home industry, particularly from
  unfair competition
• Tariff Duties are EU Duties but found in HM
  Customs Excise, integrated tariffs of the UK
• Section 1 Live animals animal products
• Chapter 3 fish crustaceans, molluscs other
  aquatic invertebrates
• Section 4 Prepared Foodstuffs
• Chapter 16 preparations of meat, fish or of
  crustaceans, molluscs and other aquatic
  invertebrates

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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• Council Regulation EC104/2000 on the Organisation
  of the Markets for Fishery and Aquaculture
  Products
• Recognises the need to
• Stabilise fishery products pricing
• Establish withdrawal and guide prices
• Aid import of fishery products for processing
  industry
• Establish safeguard measures

21
REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• Council Regulation EC104/2000
• Aid import of fishery products for processing
  industry by
• Suspending tariff duties partly or wholly
  autonomously indefinitely
• Pandalus Borealis in shell, chilled, fresh or
  frozen or intended for processing within CN Code
  0306131D, 0306231D
• Applying a preferential duty autonomous tariff
  quota (2000-2003)
• Shrimps or prawns of the species Pandalus
  Borealis, cooked peeled for processing 5,000
  tons
• End use restrictions

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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU
Council Regulation EC104/2000 Re-negotiation of
ATQs for Period 2004-2006
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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• COUNCIL REGULATION EC104/2000
• Tariff Relief Negotiation Process
• National industry proposals to government
• EU industry proposals to DG Commission
• Opinions from other stakeholders
• Meetings of management committee of member states
  and commission
• Proposals
• Political impacts
• Tariff suspension proposal through parliamentary
  process
• ATQ proposals through Council committee process

24
REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• General System of Preferences (GSP)
• EU was first (1971) to introduce GATT GSP
  proposal
• Gives reduced tariff arrangements to favoured
  countries
• EEA countries
• Developing least developed developing countries
• Countries combatting drugs trade
• Countries improving labour relations
• Countries developing environmental policies
• Issues
• Fairness
• India challenged EU over Pakistan GSP (2002)
• Origin and tariff abuse
• EU Green Paper on origin determination (2004)
• 10 year GSP review delayed 2004 to 2005

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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• GSP RATE CHANGES IMPACTS
• Thailand from LDDC to DC country status 1999
• Coincided with economic crash in S E Asia
• Uncompetitive against neighbouring countries
• Argentina proposed status from DC to developed
• Coincided with countrys economic collapse
• Lobbying delayed the change
• Drug country rates imbalance trade

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REVIEW OF TRADE DEVELOPMENT TARIFF STRUCTURES
IN THE EU

• SAFEGUARD MEASURES
• Purpose
• To protect against unfair trade practices
• Industry seek action
• Governments can act unilaterally
• Examples
• Norwegian salmon anti-dumping measures 1997-2003
• EU safeguard measures against Norway 2004
• USA anti-dumping measures against 5 warm water
  prawn exporting countries 2004

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PLACE SOME RECENT EVENTS IMPACTING TRADE IN
SHELLFISH IN EU AND UK CONTEXT

• Tariffs End Use Controls
• MAP not recognised for end-use tariff relief
• Denmark/Greenland block extra ATQs
• Speedy recognition of new ATQs by HM Customs
• Other Harmonisation of approach at EU border
  inspection posts (BIPs)
• Handling efficiency
• Inspection/analysis
• Release/rejection mechanisms
• EU approach to contaminants/antibiotics in
  relation to WTO SPS Codex?

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Problems experienced at port
The majority (72) said they were having problems
with more than half of their containers.
Information compiled by Seafish
29
Ports where problems were experienced
Out of the 300 containers imported per month by
our respondents, an estimated 189 (63) did
encounter problems.
Information compiled by Seafish
30
PLACE SOME RECENT EVENTS IMPACTING TRADE IN
SHELLFISH IN EU AND UK CONTEXT

• Tariffs End Use Controls
• MAP not recognised for end-use tariff relief
• Denmark/Greenland block extra ATQs for Pandalus
  prawns
• Speedy recognition of new ATQs by HM Customs
• Other member states can snap up ATQs for
  Pandalus prawns
• Harmonisation of approach at EU border inspection
  posts (BIPs)
• Handling efficiency
• Inspection/analysis
• Release/rejection mechanisms
• EU approach to contaminants/antibiotics in
  relation to WTO SPS Codex?

31
TARIFFS TECHNICAL BARRIERS TO TRADE IN THE
SHELLFISH SECTOR

• The aim of this presentation was
• To put the daily import/export trading issues
  into context of globalisation
• To show that there are systems and processes in
  place and developing to ensure product safety and
  fair trading
• That tariffs will come down in the EU
• That there is still a lot to do