PNG

Spanish processers don’t mind importing PNG tuna loins

Under the interim EU-Pacific EPA signed by PNG, a derogation to the rules of origin (RoO) allows tuna caught by boats from any country to be landed and processed in PNG canneries before being exported to the EU market. Since the entry into force of the new rules (initialization in 2007), the EU tuna industry has raised concerns on the ground that the derogation could open the door for massive imports into the EU of products from doubtful origin as regards SPS and IUU standards.

In January 2011, the Fisheries Committee of the European Parliament highlighted that this global-sourcing derogation “has made this country into a genuine hub for the processing of huge quantities of tuna from a variety of countries, (…) has caused considerable disruption to the canned-tuna market and constitutes totally unfair competition for a European processing sector that is already at an economic disadvantage owing to much higher labor costs and much tighter environmental and health and hygiene constraints”.

Spanish interests, as mentioned in a recent article in The Courier, have been especially upfront in challenging this derogation: “Although the European Parliament ratified PNG’s EPA there are still periodic vocal protests from a limited number of MEPs about PNG’s access to the EU market, notably from Spain which also has a canning industry”.

Following a request based on access to information regulation, CFFA received a copy of a recent 2010 study commissioned by DG mare on preferential rules of origin for fisheries and aquaculture products, which tends to show that this reluctance by European importers towards PNG products only concerns canned tuna. Indeed, over the same period, 2007-2009, the study shows that imports of tuna loins from PNG by European canneries have almost tripled. European canneries are highly dependent on such tuna raw material from third countries for supplying the EU market (70-80% of tuna consumption in the EU is based on imports) and for exporting tuna products.

As regards Spain, the FAO Globefish Tuna Market Report for the 1st quarter of 2011 observed a better performance of Spanish canned tuna exports, “reflected in its imports of pre-cooked tuna loins raw material, which increased by 31.8% against the previous year”. It is worth noting that over the same period (1st quarter of 2011) PNG had a setback in terms of canned tuna exports to the EU, which was countered by Spanish imports of PNG tuna loins.

The following legitimate question arises: why is the Spanish industry not concerned with PNG SPS and IUU issues when it comes to importing tuna loins for its own processing plants under the new RoO?