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

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
There has been no significant interaction to-date between PNG and Spain on the latter’s main three
intra-EU export markets: Italy, France and Portugal.
Italy is Spain’s main export market by a large margin, constituting 58% of its total intra-EU sales
between 2006 and 2010 (Table 6.13). The sheer size of this market penetration can be explained
partly by the fact that Spanish production for domestic and Italian markets is of a very similar
product type. In addition, in order to better access the highly profitable Italian market, Spanish firms
acquired major Italian brands (i.e. Calvo’s full ownership of the Nostromo brand and Jealsa’s part
ownership of the Mare Aperto brand – see Table 6.9).
Table 6.13 Identifying market interaction and potential trade diversion – Top 5 markets for EUbased
processors plus PNG (in million Euro), annual average for 2006-10 318
Market Spain Italy France Portugal PNG
Belgium and Luxembourg 6.1 11.2 0.3 0.8
Germany 4.3 9.3 3.2 14.8
Denmark 1.1
Spain 0.7 0.2
France 72.8 7.0 1.0
United Kingdom 9.2 11.8 1.6 5.8
Greece 17.9
Italy 182.8 21.7 14.8
Netherlands 6.7
Portugal 29.4
Slovenia 7.4
Total export value (Million €) 315.3 66.3 52.7 18.2 32.3
Top 5 as % total intra-EU exports 95% 72% 92% 98% 90%
Source: Eurostat 2011
Spain’s second largest EU market is France, constituting 23% of its intra-EU exports in the period
2006-10. PNG only sold canned tuna to this market in 2009, with exports worth € 2.7 million, but
averaged across 2006-2010 this came to only € 0.5 million. However, Frabelle (PNG) Ltd. intends to
increase its future sales to France. It will soon be trialling ‘raw pack’ 319 production of up to 20 mt of
large yellowfin per day by January 2012, which would equates to around 3,300 mt of finished
product per annum. This export strategy may result in some minor competition between PNG and
Spain on the French market. But given that this market has long been dominated by extra-EU
imports (see above and Section 6.7.4), Spain is simultaneously competing with several other third
countries. In addition, Frabelle is yet to establish clients and has not started producing commercially
Spain’s third largest market is Portugal (9% in value of its intra-EU sales in 2006-10) and where
Spanish firms also own major brands (such as Jealsa’s Rianxeria which has around 8% share of the
Portuguese canned tuna market). PNG exports only tiny volumes to Portugal (worth an average of €
0.04 million in 2006-10). Trade diversion from Spain to PNG in the Portuguese market is not
expected.
318 Re-exports are important for the Netherlands and several other EU member states. The commercial role
and statistical significance of re-exports does not fundamentally alter the dynamics focussed on in this report,
and so are excluded.
319 ‘Raw pack’ or thon au naturel is canned tuna in brine that is only cooked once, in the can.
Linpico s.a.r.l. Page 156