SEYCHELLE TUNA CONFERENCESEYCHELLE TUNA CONFERENCE

4-6 February 2010Mahé, Seychelles

Helga Josupeit, FAO •  

World Tuna TradeChallenges and Opportunities

This presentation will cover…This presentation will cover…

• World Tuna Trade

• Tuna Prices

• Challenges

• Opportunities

• Summary and Outlook

Tuna exports versus total exportsTuna exports versus total exports(1000 million US$)(1000 million US$)

1986 1991 1996 2001 2008

Total 22.6 38.2 52.3 55.8 94.5

Tuna 1.7 3.1 4.2 5.0 7.5

Fish Exports in Value (2008)Fish Exports in Value (2008)

Salmon8%

Small pelagics7%

Groundfish15%

Cephalopods5%

Crustaceans (others)

7%

Fish oil1%

Fishmeal3%Molluscs

(other)5%

Others22%

Tuna8%

Freshwater2%

Shrimp17%

Tuna exports versus catchTuna exports versus catch

010002000300040005000600070008000

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

mill

ion

US

$

0

1

2

3

4

5

6

7

mil

lio

n M

T

Tuna exportsTuna catchLine 3Line 4

Fresh/frozen tuna importsFresh/frozen tuna imports

0

500

1000

1500

2000

1000

MT

1990

1992

1994

1996

1998

2000

2002

2004

2006

Thailand Japan

Spain United States of America

Mauritius Others

Canned tuna importsCanned tuna imports

0

200

400

600

800

1000

1200

1000

MT

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

USA France UK Italy Germany Others

EU: Frozen Yellowfin PricesEU: Frozen Yellowfin Prices

0

0.5

1

1.5

2

2.5

Jan

-01

Jul-

01

Jan

-02

Jul-

02

Jan

-03

Jul-

03

Jan

-04

Jul-

04

Jan

-05

Jul-

05

Jan

-06

Jul-

06

Jan

-07

Jul-

07

Jan

-08

Jul-

08

Jan

-09

Jul-

09

Jan

-10

euro

/kg

Frozen Skipjack PricesFrozen Skipjack Prices

0

500

1000

1500

2000

2500Ja

n-87

Jan-

88Ja

n-89

Jan-

90Ja

n-91

Jan-

92Ja

n-93

Jan-

94Ja

n-95

Jan-

96Ja

n-97

Jan-

98Ja

n-99

Jan-

00Ja

n-01

Jan-

02Ja

n-03

Jan-

04Ja

n-05

Jan-

06Ja

n-07

Jan-

08Ja

n-09

Jan-

10

US

$/M

T

ThaiAfrica

Canned Tuna PricesCanned Tuna Prices

10

15

20

25

30

35

40

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

08

20

10

US

$/c

art

on EUROPE

USA

• 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

Summary and OutlookSummary 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

Summary and OutlookSummary 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

Summary and OutlookSummary and Outlook

ChallengesChallenges

• WTO

• CITES

• EU IUU regulations

Challenges (cont.)Challenges (cont.)

• eco-labels

• tariffs

• free trade agreements

• mercury

• carbon foot prints

WTO Agreements of relevance WTO Agreements of relevance for fisheriesfor 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

Doha Agenda Doha Agenda environmental labellingenvironmental 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

WTO and market accessWTO and market access

• Discussion on zero duty

• Swiss formula

CITES (Atlantic Bluefin)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

EU IUU regulationEU 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

Eco labels and tunaEco 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

Tariffs and Tariffs and Free Trade Agreements - USAFree 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

Tariffs and Free Trade Agreements – Tariffs and Free Trade Agreements – USA (cont.)USA (cont.)

• Discussion on Free Trade Agreement with Thailand, and implications for domestic (American Samoa) tuna canneries

• Free trade agreement USA-Australia

Tariffs and Tariffs and Free Trade Agreements - EUFree 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

Tariffs and Tariffs and Free Trade Agreements – EU (cont.) 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

Tariffs and Tariffs and Free Trade Agreements - EUFree 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

Tariffs and Free Trade Agreements – Tariffs and Free Trade Agreements – Japan 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

Tariffs and Free Trade Agreements – Tariffs and Free Trade Agreements – Japan 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)

Other challenges …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

Other challenges …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

Other challenges …Other challenges …

• carbon foot print discussion– tuna fishing – transport of tuna (raw material)– transport of canned tuna

OpportunitiesOpportunities

• FTAs is an opportunity for tuna exporters

• new products, such as tuna in glass jars

• paté products

• tuna jerky

OpportunitiesOpportunities

• 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

... and in this spirit... and in this spirit

• Thank you very much for your attention

• and to ISSF for inviting me