Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
as a precedent then it may result in the unravelling of the current EU system of preferential
rules of origin for fish and fish products. However, this possibility is considered by the
consultants to be highly unlikely as there are strong reasons for arguing that the derogation
was explicitly designed as an exception (see Section 2).
In summary, given zero direct interaction between the Spanish fleet and PNG, the consultants have
not been able to identify any medium-term impacts of the derogation on the current operations of
the fleet. However, in the case where European fishing firms wanted to expand their operations to
the PNG EEZ, they may encounter enhanced competition for fisheries access and the PNG market for
tuna raw material may already be sufficiently supplied by fishing firms that have onshore
investments.
6.8.3 Impacts on EU-based Processors and their Canned Tuna Markets
Impacts on EU-based Processors and their Canned Tuna Markets from March 2008 to present
As already noted, PNG has only used very minor quantities under the derogation in 2011, so it could
not have had a discernable impact on EU markets. Even so, to date, PNG canned tuna exports have
not penetrated the most important markets of EU-based producers. This is for three main reasons:
1. No other major Asia-Pacific exporter (i.e. Philippines, Thailand) has ever played a significant
role in the Italian and Spanish markets for canned tuna. Part of the explanation for this is
the specificity of the Italian and Spanish markets: yellowfin tuna in olive oil packed in small
can sizes. This requires:
a. a regular supply of yellowfin tuna (the EU DWF is the lead player in the two oceans
with a historically high proportion of yellowfin tuna catch – the Eastern Central
Atlantic and Western Indian oceans);
b. cheap supply of olive oil (an agricultural sector that is heavily subsidised in the EU);
c. specialised production lines dedicated to processing 80g cans, which, given the
higher ratio of canning material to fish, also requires the availability of competitively
priced canning inputs (e.g. tinplate) normally facilitated by industrial canning
clusters such as in Bangkok and Galicia.
d. control of a major national brand in Italy and/or Spain, and/or stable contracts to
supply brands or private label.
All of these factors could be individually achieved in other locations of production, but in
combination they act as a significant barrier to entry, certainly for PNG-based exporters in
the medium to long term (i.e. 5-10 years). In addition, the country of manufacture may play
a role in consumer decisions in these two countries, with a preference for domestically
made food items in Italy, for example. 313
2. In France, where Thailand has a very significant market share, domestic production has long
given way to extra-EU imports of standard canned product. France-based processors
specialise in ‘value added’ tuna products which is a highly specialised, technicallysophisticated
manufacturing process that PNG-based exporters have no plans to enter into.
3. The vast majority of PNG’s exports to the EU (84.5%) over the period 2006-2010 went to
Germany, the Netherlands and the UK and consisted of basic quality ~180g canned skipjack
in vegetable oil or brine.
313 Catarchi 2004.
Linpico s.a.r.l. Page 153