Shrimp Market Access, Tariffs and Regulations

1
Shrimp Market Access, Tariffs and Regulations

• by
• Helga Josupeit, FAO

World Shrimp Markets 2004, 26-27 October 2004,
Madrid, Spain
2
The speech will cover

• WTO agreements
• DOHA discussions
• Tariffs and quotas
• USA
• EU
• Japan
• Other Issues
• Conclusions

3
WTO Agreements of relevance for fisheries

• Agreement on Sanitary and Phytosanitary Measures
  (SPS)
• Agreement on Technical Barriers to Trade
• Agreement on Subsidies and Countervailing
  Measures
• Agreement on Import Licensing Procedures
• Agreement on Anti-Dumping
• Agreement on Rules of Origin
• Dispute Settlement

4
Doha Agenda

• improved market access,
• fisheries subsidies,
• environmental labelling,
• the relationship between WTO trade rules and
  environmental agreements,

5
Tariffs and Free Trade Agreements - 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.

6
WTO definition of dumping

• three methods to calculate a products normal
  value.
• The main one is based on the price in the
  exporters domestic market.
• the price charged by the exporter in another
  country,
• or a calculation based on the combination of the
  exporters production costs, other expenses and
  normal profit margins.

7
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
• Complaint likely to come soon

8
US anti-dumping

• Countries affected
• Brazil up to 67.8
• Ecuador 6.08-9.35
• India 3.56-27.46
• Thailand 5.56-10.25
• China 8.00-113
• Viet Nam 12-93

9
Other issues

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

10
Tariffs and Free Trade Agreements - EU

• EU tariffs are 12 for frozen shrimp and 20 for
  canned shrimp
• Thailand tries to get GSP preferential status
  back
• ACP 0 duty likely to expire in coming years

11
Tariffs and Free Trade Agreements - EU

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

12
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

13
Other issues

• Detention of shrimp with antibiotics in EU
• China (mainland and Taiwan)
• Thailand
• Indonesia
• India
• Philippines
• Viet Nam
• Bangladesh
• and others more

14
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

15
Other issues

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

16
Conclusion

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

17
Conclusion

• 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.