Spain: EU Aid For Tsunami Countries Will Hurt Canneries And Ship Scrapping Yardsff

According to Spanish press reports the Spanish canning industries are on the alert due to the duty reductions on Thai tuna. Thailand is the first tuna producer and exporter world-wide and its products will saturate the European Market. Spanish tuna canners will need to relocate in order to compete. This puts 13,000 jobs at risk.

The Spanish canning industry and ship scrapping companies feel threatened by the aid the European Union (EU) will give to the Asian countries affected by the tsunami that was proposed by the Spanish Government after the disaster in Indonesia, and which has been discussed by the 25 EU members in Brussels. Two of the proposals launched by the Central Government are the supply of the European ships, which were planned to be scrapped, and the increase of the entry of Asian tuna in the European market. However, the Spanish manufacturing and scrapping industries do no agree with these proposals, because is does not benefit these sectors.

If the EU Fishery Ministers ratify these measures, the EU will offer more trade facilities to Thailand, the world leader in tuna production and exports, enabling this Asian country to place its canned products in the European market. According to the sector, the duty reduction from 24 to 20,5 % for Asian producers will damage the European own productivity, given that Thailand is already the main EU competitor in the canning industry currently exporting 25,000 tons of tuna to the Communitarian market.

As said by the sector, the reduction of duties by more than three percent for the Asian producers will prove to be counter productive for Europe, since Thailand is the main competitor for the European Union at the canning industry and actually is exporting already 25,000 tons of tuna.

According to Mr. Juan Manuel Vieites, president of ANFACO (National Association of Canning and Seafood Producers) and also responsible of EUROATUN (European Business Association representing the European tuna sector)  “We are not against international co-operation, but we do not consider it logical to surrender on commercial issues that are damaging to us”.  He also said that the consequences in the long term will be  “fatal”, since Spain’s exports will loose it’s competitiveness forcing Spanish companies to relocate. “It is already difficult to face the unfair competition of Asian producers practicing social dumping and the lack of complying with the quality and safety regulations imposed by the European Union. “With these new disadvantages our (Spanish) companies will have to abandon their current strategy of internationalization to relocate their production and thus approach local markets. This will also put 13,000 jobs in the Spanish canning companies at risk”.

ANFACO also notes that “This is making things far too easy for world-wide companies located in Thailand, where they pay their employees only just one US dollar per day; a monthly salary that does not even reach 60 Euros, which therefore allows them to sell at very low prices and saturate the European markets. This is not the best way to help Asia after the tsunami”.  These new measures will not only benefit Thailand, with its 6,000-employee-factories, but also benefit Indonesia, Philippines and India.
 
Ever since this proposal was known, Mr. Vieites explained that ANFACO has moved forward to stop this initiative, even when being well aware that more than some European countries will vote for its approval; such as Germany and United Kingdom.

Another action, which the European Fishing Ministers have debated, is the aid and technical assistance for the production, transformation and trade of fisheries and aquaculture that, according to EU Commissioner Joe Borg, have been the most affected sectors besides tourism after the disaster. In the case of Sri Lanka, 80% its fleet has been destroyed and 70% in Indonesia, according to data provided by the European Commission.

Source: Spanish Press