Regulations in Fish Trade

1
Regulations in Fish Trade

• Helga Josupeit
• October 2005
• 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

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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,
  Sri Lanka,
• Special conditions Pakistan

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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
• 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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Tuna
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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 EU

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

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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

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Tariffs EU canned tuna

• Indonesia, 2833 tonnes of canned tuna quota at
  12, afterwards 24
• Thailand, 13390 tonnes of canned tuna quota at
  12, afterwards 24
• India, Malaysia, and Pakistan (and many others)
  257 tonnes of canned tuna quota at 12,
  afterwards 24
• Bangladesh, Sri Lanka and Maldives 0

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Free Trade Agreements EU

• GPS-Drugs agreement set certain duty free quotas
  for canned tuna and tuna loins from Andean
  Community and Central America
• India is questioning this agreement under WTO
• 4000 tonnes duty free quota for tuna loins from
  Asia

17
Tariffs EU loins

• Bangladesh, Sri Lanka and Maldives 0
• All other countries 4000 tonnes quota at 6,
  afterwards 24 duty

18
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

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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)

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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)

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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

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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

23
Shrimp
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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 in
  domestic (US) production prices
• Obvious difference between the US definition of
  dumping and the WTO definition
• Complaint likely to come soon

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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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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 12 for frozen shrimp and 20 for
  canned shrimp
• The tariff for frozen Pandalus and Parapenaeus
  shrimp is 0, the one of frozen Penaeus is
  reduced to 4.8 until the end of 2005 for all
  countries
• the tariff on canned shrimp is reduced to 7

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Tariffs EU

• Indonesia, Thailand, India, Malaysia, and
  Pakistan 4.8 for frozen shrimp and 7 for
  canned shrimp
• Bangladesh, Sri Lanka and Maldives 0

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Tariffs - EU

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

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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

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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 Shrimp

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Other issues

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

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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

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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.

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Cephalopods
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Tariffs - USA

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

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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

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Tariffs EU fresh and frozen cephalopods

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

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Tariffs EU canned cephalopods

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

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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

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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.

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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

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Groundfish
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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

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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

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Tariffs - EU

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

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Tariffs EU value added products

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

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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

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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.