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Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
EU loin imports were based on a more geographically dispersed supply base in 2010 compared to
2001. In 2001, the top-five 252 provided 92% in volume of supply, whereas in 2010 the top-five 253
provided only 75%. This is due to growing absolute EU demand and an increased number of
countries exporting this product. Despite this fluctuation, Ecuador’s relative share declined by only
1% – from 37% in 2001 to 36% in 2010 – but gained a 45% increase in absolute supply. Ecuador is the
clearly the leading supplier of tuna loins to the EU by a large margin. However, processors based
there suffered from a declining availability of raw material in 2010. 254
It is also important to note the growth in EU loin supply from Thailand, from 2% in 2001 to 12% in
2010 (Table 6.2). This is despite its exports normally only being eligible for the standard GSP at a
tariff rate of 20.5%. Thailand’s increase in relative and absolute market share can be explained by an
EU tariff quota on loins where 15,000 mt can be imported annually at only 6% duty as long as they
are destined for canning by EU-based processors. 255 The ‘loin quota’ is provided to ensure that EUbased
processors receive an adequate supply of raw material, but without jeopardising the
competitiveness of these processors through full exposure to low-cost imports. 256
Combined, the four Latin American GSP+ countries listed in Table 6.2 had a 53% share of the extra-
EU loins market in 2010, and the six African IEPA countries had a 24% market share. This indicates
that these two types of preferential trading arrangements are working (i.e. promoting exports to the
EU in this product category).
Excluding PNG and the Solomon Islands, the five Asia-Pacific countries exported a total volume of
17,600 mt of loins in 2010, a total 17% share of the EU market. This indicates two important issues.
First, the GSP+ and IEPA countries are unable to supply the full volume requirement of EU-based
processors. Second, that the ‘loin quota’ is functioning to mainly benefit Thailand and China (Table
6.2).
252 Ecuador, Colombia, Kenya, Côte d’Ivoire and Seychelles.
253 Ecuador, Mauritius, Thailand, Guatemala and El Salvador.
254 Hamilton et al. 2011.
255 The most recent autonomous quota dealing with tuna loins applies from 1 January 2010 to 31 December
2012 and is only available to one HS Code for loins (1604 1416) (Council Regulation 1062/2009). These quotas
have been necessary for EU-based processors due to insufficient supply of loins from third country suppliers
that benefit from duty-free preferences, i.e. ACP, EBA and GSP+ countries; Campling 2008b.
256 Damanaki 2011.
Linpico s.a.r.l. Page 127