SEYCHELLE TUNA CONFERENCE 4-6 February 2010 Mahé, Seychelles Helga Josupeit, FAO

1. World Tuna Trade Challenges and Opportunities SEYCHELLE TUNA CONFERENCE 4-6 February 2010 Mahé, Seychelles Helga Josupeit, FAO

2. This presentation will cover… • World Tuna Trade • Tuna Prices • Challenges • Opportunities • Summary and Outlook

3. Tuna exports versus total exports(1000 million US$)

4. Fish Exports in Value (2008)

5. Tuna exports versus catch

6. Fresh/frozen tuna imports

7. Canned tuna imports

8. EU: Frozen Yellowfin Prices

9. Frozen Skipjack Prices

10. Canned Tuna Prices

11. Summary and Outlook • Canned tuna trade has stablized in recent years • Thailand major canned tuna exporting country, and growing strongly in recent years • but also the Philippines is expanding somewhat

12. Summary and Outlook • Economic crisis had impact on canned tuna and sashimi quality tuna • USA by far main canned tuna importing country, demand declining due to various reasons • Demand in canned tuna consuming countries is very price conscious

13. Summary and Outlook • More supermarket labels, especially in traditionally more trade brands oriented countries, such as Italy and Spain • High value products such as tuna in glass jars are having a difficult time in Europe • No tuna pouches in Europe • Prices, importers are willing to pay, are relatively low

14. Challenges • WTO • CITES • EU IUU regulations

15. Challenges (cont.) • eco-labels • tariffs • free trade agreements • mercury • carbon foot prints

16. WTO Agreements of relevance for fisheries • Agreement on Sanitary and Phytosanitary Measures (SPS) • Agreement on Technical Barriers to Trade • Agreement on Subsidies and Countervailing Measures • Agreement on Import Licensing Procedures • Agreement on Anti-Dumping • Agreement on Rules of Origin • Dispute Settlement

17. Doha Agenda environmental labelling • to clarify the impact of eco-labelling on trade and • examine whether WTO rules stand in the way of eco-labelling policies. • FAO adopted a set of voluntary guidelines for the ecolabelling of fish products, March 2005

18. WTO and market access • Discussion on zero duty • Swiss formula

19. CITES (Atlantic Bluefin) • Fifteenth Meeting of the Conference of the Parties of CITES in Doha (Qatar), 13-25 March 2010 • In December 2009, a majority of the FAO Ad Hoc Expert Advisory Panel considered that the available data does support the proposal to include Atlantic bluefin in CITES Appendix I, • BUT no consensus was not reached • consensus for inclusion of Atlantic bluefin in Appendix II

20. EU IUU regulation • All seafood export shipments to the EU must clearly show the origin of the products, • including the sea area where the fish are caught and the names of the fishing boats. Otherwise, they will be refused entry. • This law was implemented on 1 January 2010. • Tuna fisheries are also one of the fisheries most subject to IUU fishing in the past • Panama and Belize: additional information requested

21. Eco labels and tuna • Dolphin safe tuna • Friend of the Sea • Frabelle Fishing Corporation (PNG/Western Pacific) • Maldives (Indian Ocean) • Philippines (Western Pacific) • Sri Lanka (Indian Ocean) • Azores (North Atlantic) • Brazil (South West Atlantic) • Namibia (South East Atlantic)Senegal (Eastern Central Atlantic) • MSC • American Albacore Tuna • Tosakatuso skipjack tuna

22. Tariffs and Free Trade Agreements - USA • “classical” 6% on canned tuna imports, up to a quota, 12.5% when quota is filled Andean Community countries: only tuna in pouch has duty free entry into USA, and this will be revised soon • Free Trade Treaty for Central American countries – 0% tariff for tuna in oil, 1-2% for other canned tuna

23. Tariffs and Free Trade Agreements – USA (cont.) • Discussion on Free Trade Agreement with Thailand, and implications for domestic (American Samoa) tuna canneries • Free trade agreement USA-Australia

24. Tariffs and Free Trade Agreements - EU • EU tariffs are 18% for frozen whole tuna (suspended, that means real duty is zero) and 24% for tuna loins and canned tuna • Tariffs for many developing countries such as Thailand, Indonesia and the Philippines are 20.5%. • ACP 0% duty on canned tuna has been replaced by EPAs, still at 0% duty. 50 countries at present

25. Tariffs and Free Trade Agreements – EU (cont.) • GPS-Drugs agreement set certain duty free quotas for canned tuna and tuna loins from Andean Community and Central America

26. Tariffs and Free Trade Agreements - EU • Important: Conditions to Obtain the Preferential Origin GSP • vessel are registered or recorded in that country • vessel flying the flag of that country • vessel belongs for at least 50% to nationals of that country or if she belongs to a partnership which has his main office in this country • the captain and the officers are nationals of the particular country • the crew exist for at least 75% of nationals of the country

27. Tariffs and Free Trade Agreements – Japan Reduction of tariffs for tuna: fresh and frozen tuna from 10% to 5% under the GATT agreement, and now to 3.5% Canned tuna from 20% to 15% under the GATT agreement, and now to 9.6%, and even as low as 6.4% or free for special concessions

28. Tariffs and Free Trade Agreements – Japan • Organization for Promotion of Responsible Tuna Fisheries (OPRT) • Mexico-Japan Free Trade Agreement • Thailand- Japan Free Trade Agreement • Positive Listing in Japan • both for wild (November 2003) • and farmed tuna (August 2004)

29. Other challenges … • Carbon monoxide use prohibited in the EU (outlawed since decades, but enforcement started since early 2004) – but some confusion • Carbon monoxide use prohibited in Japan (since 1997) – but has GRAS status in USA • Use of hydro protein in canned tuna not allowed in the EU, but allowed in the USA

30. Other challenges … • Methyl-mercury warning in USA, UK and Ireland • Last week: Expert consultation on risk and benefits of seafood consumption Country of origin labelling in USA • DNA testing on “false” tuna in Japan • All tuna In Japan must be labelled with details of its origin

31. Other challenges … • carbon foot print discussion • tuna fishing • transport of tuna (raw material) • transport of canned tuna

32. Opportunities • FTAs is an opportunity for tuna exporters • new products, such as tuna in glass jars • paté products • tuna jerky

33. Opportunities • promote image of tuna, as a healthy, unexpensive food • improve sustainability of tuna resources, and communicate it to the public – ISSF and this type of meeting is a very good opportunity in this respect

34. ... and in this spirit • Thank you very much for your attention • and to ISSF for inviting me