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Central American Nations Applying For 0% Tuna Duty In USff

24 October 2002 American Samoa
American Samoan congressman Eni Faleomavaega announced today that five Central American countries, including Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua are seeking duty-free treatment for canned tuna under the provisions of the U.S. Central America Free Trade Agreement.

"I was informed yesterday that the U.S. International Trade Commission (ITC) is conducting an informal investigation regarding the probable economic effects that the U.S. Central America Free Trade Agreement may have on the U.S. tuna and fishing processing industries," Congressman Faleomavaega said. "Put in another way, the ITC is investigating whether tariff rates for tuna from Central America should be lowered or removed, and once again, adding that this could spell trouble for American Samoa."

Faleomavaega informed the Chairman of the ITC that he is deeply disappointed that the ITC has given Chicken of the Sea, Bumble Bee, and the U.S. tuna purse seiners less than three weeks to provide information in their defense. The ITC is moving forward with this investigation knowing that StarKist may not submit testimony due to a pending merger agreement between Heinz and Del Monte that is not expected to be resolved until October 31, 2002, according to the congressman.

StarKist owns and operates the largest tuna cannery in the world which is located in the U.S. Territory of American Samoa. Although Heinz has owned StarKist for almost 40 years, Del Monte will presumably assume ownership of StarKist effective November 1, 2002. Given this historical change and StarKist's significance, Faleomavaega questions why the ITC would proceed with an informal investigation during a period when Del Monte may not be able to fully or openly participate in this process. In and of itself, this suggests that the ITC may be prejudicing the outcome of its informal analysis."

"Tuna quotas are a serious trade matter," Congressman Faleomavaega said. "For the U.S. Territory of American Samoa, this matter affects more than 85% of American Samoan's single-industry economy. As he repeatedly stated, a decrease in production or departure of one or both of the existing canneries in American Samoa could devastate the local economy resulting in massive unemployment and insurmountable financial problems."