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

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
achieved. There has been a recent increase in rapid alerts for EU tuna imports from PNG, which will
raise renewed questions about the compliance of vessels/plants and the CA itself. PNG cannot
afford to be de-listed, with the EU the primary market for PNG canned tuna and increasingly, cooked
loin exports. In future, the work load and expectations of the CA associated with increasing number
of plants and unloading vessels can increase substantially. The CA has anticipated this to some
extent, with plans to double the number of auditors by next year. Furthermore, additional
equipment, enhanced training and capacity building, upgrading systems/processes etc. will all be
required.
Impacts on the EU Market and EU-Centred Fishing and Processing Industries
The EU is PNG’s most significant market overall in terms of total tuna exports, and is the largest
market for canned tuna. In 2010, total canned tuna exports to the EU were 15,867 mt and valued at
around € 37 million. The highest volume of canned tuna exports on record was 18,217 mt in 2005,
with annual export volumes fluctuating throughout the past ten years (2001-2010). The major EU
markets for canned tuna from PNG are presently Germany, UK, Denmark and the Netherlands.
PNG processors have also been exporting cooked loins to the EU since 2005 and volumes have
fluctuated during this time. In 2010, cooked loin exports were the highest volume to date, totalling
2,485 mt and valued at € 8.8 million. The major markets for PNG loins are Italy and Spain.
Impacts on the EU Distant Water Fleet
The purse seine fleet that is flagged by EU member states operates almost exclusively in the Eastern
Tropical Atlantic and the Western Indian Ocean. Today, and historically, there is very limited
interaction of the EU Distant Water (tuna purse seine) Fleet (EU DWF) with the WCPO. Currently
only four Spanish-flagged boats operate under Fisheries Partnership Agreements in the WCPO (with
FSM, Kiribati and Solomon Islands), and an additional 10 Spanish-owned, non-EU flagged boats are
registered to fish in the WCPO. Non EU-flagged Spanish-owned vessels in the Pacific operate
primarily in the Eastern Pacific Ocean, but also engage in operations in the WCPO. These purse
seiners primarily supply catches to parent tuna processing facilities in Latin America. As a result,
these vessels generally do not supply originating fish to PNG or other tuna processing facilities based
in the Pacific islands.
PNG-based processors have utilised only very minor quantities of tuna under the derogation in 2011,
so de facto no direct impacts on the EU DWF are discernable. The Spanish DWF active in the WCPO is
not currently supplying PNG, so processing investment in PNG is not directly influencing EU DWF
tuna sales through competition on the PNG market with non-EU purse seining firms.
Given zero direct interaction between the Spanish fleet and PNG, there is little likelihood of the
derogation impacting on the current operations of the EU DWF in the medium term. 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.
EU-based processors and their canned tuna markets
Since PNG processors have only sourced very minor volumes of raw material under the derogation in
2011, the derogation has not had a discernable impact on EU markets. In any case, PNG canned tuna
exports have not penetrated the most important markets of EU-based producers (i.e. Spain and
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