PNG Fights For Tuna Duty Free Status To EUff

Source: Post Courier

Papua New Guinea (PNG) is fighting hard to keep its special duty free canned tuna export status to the European Union.

Early this month Foreign Minister, Sam Abal, addressed the European Parliamentary Committee on International Trade stressing maintenance of an agreement signed giving PNG this special duty free status.

The same status also applies to Pacific ACP countries under the Interim Economic Partnership Agreement (IEPA) which came into force on January 1, 2008.

Mr Abal who was accompanied by Fisheries Minister, Ben Semri, had to strongly emphasis to the committee the special position accorded to the Pacific ACP countries in light of vigorous opposition from certain EU members of the duty free arrangement.

The opposition to the PNG and Pacific ACP preferential status are also being pushed by other countries supplying fish to the EU market demanding the same preferential status.

Generally under the IEPA fish caught anywhere in the world but processed onshore in a Pacific ACP country can be exported to the EU duty free.

Mr Abal said it was crucial for PNG to remain prepared in order to be able to defend the IEPA by securing smooth passage of the agreement through the EU Parliament for official ratification.

Mr Abal said since initiation of IEPA in 2007 PNG’s fishing industry had expanded substantially with committed investments in excess of US$200 million and with an anticipated increase totalling US$150 million.

He said this provided the potential to generate in excess of K1 billion worth of exports by 2014 plus direct and indirect new job opportunities of between 40,000 and 60,000.

He said the IEPA was a legally binding agreement and “defending and supporting the IEPA is too important for PNG and the Pacific region as a whole, given the enormous benefit global sourcing presents.”

Mr Abal said tuna exports to Europe represented 95 per cent of PNG’s total canned exports but was only two per cent of the EU’s total imports “and therefore EU member nations ought not to feel that PNG would flood the market under the IEPA.”