According to announcements in the Philippine press today, fate of canned tuna producers from Philippines and Thailand who export to the E.U market will be known later today, as the European Commission (EC) is set to vote on a resolution granting compensation to the Philippines in exchange for the preferential access the 15-member body granted tuna exports of African, Caribbean and Pacific (ACP) states. Atuna failed to get confirmation of this event from other sources.
In an interview, a Philippine government source said yesterday that the EC would decide today on whether it would adopt a World Trade Organization mediator’s opinion, which is seen to settle a nearly two-year dispute with the EU over Philippine canned tuna exports. While refusing to disclose the actual opinion made by the WTO mediator, the source said the Philippine government and the local canned tuna industry found it fair and acceptable.
Sources at the Philippine Department of Trade and Industry earlier said the Philippines were considering a tariff-quota arrangement to resolve their canned tuna row with the EU. Under World Trade Organization rules, a tariff-quota arrangement would entail imposing lower duties on a limited volume and higher rates for quantities exceeding the quota.
Only 24 votes are needed to block the resolution endorsing the WTO mediator’s opinion. France and Spain are expected to block the resolution adopting the WTO mediator’s opinion. Seen crucial in today’s vote is Italy, which, the source said, initially had objected to granting any compensation to the Philippines. Votes cast by the three EU member-states are enough to block the resolution. As chair of the EC, Greece, which was initially against granting the Philippines any compensation, is likely to take a more neutral stance.
The Philippines have been asking the EU to grant greater access to their canned tuna, one of the country’s top 10 exports, through lower tariffs. Now the tuna is slapped with import duties of 24 percent.
The EU market, which imports nearly 20 percent of Philippine tuna products, is the country’s third biggest market, next to the US States and Singapore. A Spanish embassy official earlier told that Spain consumes only seven percent of the Philippine’s tuna exports to the EU, whereas France, Germany, Italy and the United Kingdom altogether account for about 75 percent of the EU market.
Trade and Industry Secretary Manuel A. Roxas II earlier revealed that Spain and France were among the EU member-states opposing the Philippine petition for parity with the ACP countries. Spain and France harbor their own domestic tuna industries and are among the biggest in the European continent, and also these nations have large tuna fishing interests.
The Philippines, Thailand and the EU entered into mediation proceedings under the auspices of the WTO after earlier consultations between the two parties failed to come up with a solution. Philippine canned tuna producers earlier had lobbied before the embassies of the 15 EU member-states in a bid to secure their support for the grant of preferential tariffs for Philippine canned tuna. As of four months ago, only the United Kingdom and Germany had responded favorably to the local industry’s request for support.
The Philippine tuna industry contributed some $127 million to the country’s exports in 2001, with canned tuna accounting for some $64.4 million. Sales in 2001 were lower than that posted four years before, when the Philippines was shipping $200 million worth of tuna exports, of which $130 million was canned.
In exchange for granting greater market access to Philippine canned tuna, the EU would require the Philippines to drop its dispute case before the WTO.
The Philippines, along with Thailand have entered into mediation with the EU under the auspices of the WTO. Both parties sought mediation shortly after consultations between them bogged down over the former’s extension of zero-duty privileges to ACP canned tuna.