The 25 members of the European Union agreed to anticipate the duty reduction for the Asian countries affected by the Tsunamis. Therefore, since last Friday, January 21st, Thailand has a clear opening to place its canned products in the European market and therefore in direct competition to Galician products. The current duty rate for canned tuna from Thailand of 24% will be reduced to 20,5% starting April 1st 2005.
The 25 members of the European Union supported the Commission’s proposal to move up to April 1st, those commercial advantages which were initially scheduled for July 1st, as a measure to help economically all the Asian countries affected by the tidal waves of December 26th.
The European Union (EU) will allow all Sri Lankan products to enter the European market free of duty. The EU will also establish a duty reduction (from 24% to 20,5%) on seafood and fishery products from India, Indonesia and Thailand This last country is the main competitor to the Galician tuna industry.
Mr. Juan Manual Vieites, General Secretary of ANFACO (National Association of Canned Fish and Seafood Producers) and also responsible of Euroatun (European Business Association representing the European tuna sector) expressed his aversion towards this resolution and conveyed the current distress of the Galician tuna businessmen.
Although ANFACO doubts that the opening of the European market for the free trade in canned tuna will help the Asian countries affected by the tsunamis, the canning manufacturers insist that European Union and its decision “will only benefit the Thai world-wide companiesâ€, which are the number one first global producers and therefore the main competitors for the Galician and European industries. As explained by Mr. Vieites, the companies that will be benefit from these commercial advantages are the ones located in northern area of Thailand, a location that was not affected by the Tsunami and furthermore “those companies do not guarantee the legitimacy of their raw material’s origin nor do their plants comply with the regulation of the International World Organizationâ€.
The Galician canning producers have no doubt that this unfair competition will soon lead to a better positioning of Thai canned food in the European market and consequently the European industry will have to lessen its production. This will impel the industry towards the relocation. According to Mr. Vieites, “if this tendency is imposed, Spanish companies will be forced to leave Galicia and move to third countries to maintain productionâ€.
Data provided by ANFACO indicate that Thailand increased its canned tuna sales to the EU by 16% during 2004.