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Philippines Wants 12 Pct Duty On All EU Canned Tuna Exportsff

7 July 2006 Philippines

The Philippines plans to renegotiate with the European Commission a higher export quota on canned tuna products at a regular tariff of 12 percent or lower. The commission earlier rejected Manila’s request for a higher tuna allocation.

Tuna shipments to Europe, according to industry estimates, could grow by as much as 20 percent if the EC allowed a higher quota at duties lower than 12 percent.

The Philippines, along with Thailand and Indonesia, enjoys a 12 percent tariff rate on a quota of 25,000 metric tons annually. The Philippines has a quota share of 9,000 Mt against Thailand’s 13,000 Mt, Indonesia’s, 2,750 Mt and other countries with 250 Mt. Tuna exporters pay a 24 percent duty above quota volume.

The deputy head of the EC in the Philippines said the commission denied the request of the Philippines to raise its tuna quota after failing to meet its 9,000 Mt allocation in the previous quarter.

Non-preferred countries like the Philippines are allowed to increase their export allocation at lower tariff if they raised their export volume by 3 percent annually starting 2005 to 2007, an issue that local tuna canners and fishers contest.

Rudy Rivera, director of the General Santos-based Socsargen Federation of Fishing and Allied Industries Inc., said the EC refused to allow the Philippines to increase its quota to accommodate preferred countries.

The EU like the US favors exporters from Central America, African, the Caribbean and Andean countries.

”That fact is, all tuna canners and fishers in the country would want higher allocation. The 9,000 Mt quota given to the Philippines is only good for two weeks. We can do better than that,” Rivera said. He said the association would lobby for greater access in the EU market and press the government to support the tuna industry’s cause.