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Taiwanese Vessels In Philippines Accused Of Price Dumpingff

1 October 2003 The Philippines

The port manager of Davao Fishport Complex, Philippines, has belied “resurrected” reports that there was a tuna dumping here by foreign-vessels that allegedly resulted to cheap prices of tuna in the market. Carlos Hagosojos issued this clarification yesterday in the wake of a report published in a national daily on September 25 that foreign-registered vessels have been very blatant in docking at the ports of Davao and General Santos.

The report said that the vessels dumped fish at the Davao Fishport resulting to a reduction in the price of tuna, which the local fishermen cannot match.

Effective  November this year, the Davao Fishport has been given the go-signal to increase its absolute restriction to 3.5 metric tons primarily to stabilize the tuna market and allow Davao consumers to buy tuna at an affordable price. Davao Fishport manager Carlos Hagosojos said Davao was previously allocated only 1.2 metric tons per day out of the 30 percent non-exportable supply of tuna at the fishport.

Of the total volume of fish unloaded by foreign vessels at the Davao Fishport, 70 percent goes to Japan while the remaining 30 percent is distributed to processors and the Davao market.

“The increase in the absolute restriction could help us respond to the request of Cagayan de Oro and Butuan cities,” he said.

Hagosojos said there was no basis on the allegation that tuna dumping has been happening at the Davao Fishport.

He suspected several traders based in General Santos who could be behind the “resurrected” issue.

“As far as I am concerned the issue may come from one or two businessmen whose motive we don’t know why they resurrected this baseless issue,” he told reporters yesterday noon at the fishport in Daliao, Toril.

Hagosojos theorized that the issue stemmed from tuna prices in Davao and General Santos.

He admitted that the lowest tuna price in Davao is P80 per kilo, which has reportedly been used by General Santos tuna traders as an issue to say there was tuna dumping here since tuna price in General Santos is pegged at P230 per kilo.

The Davao port manager however clarified that the pricing was based on tuna classification as those sold at P80/kilo belong to Class C or D while those in Gensan can already be classified as Class A.

He even said the price for the Class A tuna at the Davao Fishport, currently at P280 per kilo, is even higher than those sold in General Santos.

The first class or Double AA tuna, which are being exported mainly to Japan, is sold at $6.50 (about P350) per kilo.

With the absolute restriction, he said no fish is allowed to leave the port unprocessed which is why other fish processors from General Santos City had to locate their processing facilities right at the Davao Fishport, he said.

Among these processors are Citra Mina, King Food, Angel Seafood and Sta. Cruz Trading.

The only Davao City-based processor is East Asia, he said.

The presence of other processing centers is a welcome move that maximizes the use of government facilities, he said.

At the same time, he denied claims that Taiwanese vessels were dumping non-exportable grade tuna onto the local wet market.

He said all retained tuna and other tuna-like species go to the fish processors and the wet markets of the city.

In a situation where there is a remarkable deficit of 88 to 90 tons of fish daily, “kulang na kulang pa nga ang supply (the supply is still very limited),” he said.

Hagosojos said dumping only occurs in a situation where a big volume of commodity is brought in illegally from an outside source coupled with the objective of interfering in the pricing scheme of a similar locally-produced commodity.

He corrected claims that tuna was selling at P230 a kilo in General Santos City and only P80 in Davao City.

The price of exportable tuna at the port for class AA is $6.50 or P357.50 per kilo while class A is at $5.55 and the rest at $4.55.

The prices of tuna are based on the class and the quality of the fish, he said.

Dumping can be damaging because it affects the price of a commodity, he said.