In response to a proposal to sign a free trade agreement between the EU and 10 regional groups of countries, the EU will initiate a series of negotiations on the possibility of tariff reduction and exemption for tuna cans exported from the Philippines and other ASEAN member states.

 

Gabriel Munuera-Vinals, Commercial Counsellor of the European Commission Mission in the Philippines, said the EU was negotiating on the proposed terms of the trade agreement and was hopeful that canned tuna would be included in the range of commercial services considered. "We are in discussions with the Association of Southeast Asian Nations (ASEAN) and hopefully we can solve this problem," he said earlier at a press conference attached to the 11th National Tuna Congress.

 

Consultations with the Association of Southeast Asian Nations (ASEAN) were held in May 2007, but progress was slow for a variety of reasons, including the deteriorating human rights situation in Myanmar and the suspension of negotiations between the Group of 27 and ASEAN member States on the signing of the Partnership and Cooperation Agreement. In accordance with EU procedural requirements, all ASEAN member countries must sign the Partnership and Cooperation Agreement, which requires these countries to make commitments to human rights protection as a prerequisite for the signing of free trade agreements. At present, Indonesia and the European Union signed the partnership and cooperation agreement.

 

Vinals said the trade agreement was designed to allow more Southeast Asian aquatic products to enter the EU market through tax-free provisions. "We plan to implement a zero tariff policy for aquatic products in the 90% ASEAN countries entering the EU market." However, he also said that since the free trade negotiations began more than two years ago, the two sides have not yet reached agreement on which products can be included in the zero tariff plan.

 

At present, the Philippine tuna cans sold to the European Union are subject to a 24% tariff, while competitors such as the ACP Group of Nations and countries in the Andean Mountains enjoy a zero tariff policy, which is undoubtedly detrimental to the Philippine tuna industry. The European Union had previously implemented a "Tariff Quota Management" plan, which imposed a 12% tariff on 9,000 tonnes of tuna canned from the Philippines, but the five-year plan ended in June 2008. In addition to the Philippines, the EU has also given preferential tariff quotas to other tuna-exporting countries, such as Thailand (13,000 tons), Indonesia (2,750 tons) and other non-priority countries, totalling 25,000 tons. The Philippines has tried to lobby the EU for more tariff-privileged quotas, but Vinals says the EU has decided to review and consider all trade concerns within the legal framework of free trade agreements.

 

So far, the European Union and the association of Southeast Asian nations have been thinking about how to push forward so as to finally complete consultations.

 

Vinals stressed the EU's commitment to continue negotiations on the terms of the agreement, although he also acknowledged that the EU felt the urgency of signing free trade agreements with ASEAN, as ASEAN had already signed trade agreements with countries such as China, Australia, New Zealand and India. "Free trade negotiations between the European Union and the Association of Southeast Asian Nations were scheduled to end this year, but as we have seen, this will not be possible. But negotiation is a continuous process. We promise to complete negotiations as soon as possible. " Vinals added.

 

Filipino tuna industry workers have urged the government to get zero tariff concessions for canned tuna exports to the EU as soon as possible so that their products can better penetrate the EU market. In early 2009, the CPC and the Philippine Chamber of Commerce and Industry held three national consultations at which the leadership of the Philippine Fisheries Processing Association expressed the same position on the issue of free trade negotiations. Marfenio Tan, president of the Philippine Fisheries Processing Association, believes that canned tuna production in the Philippines is expected to increase by 20% if the EU allows more aquatic products to enjoy low tariff preferences.

 

In addition, data from the Philippine tuna industry show that canned tuna exports to Europe account for at least 40% of annual exports, mainly from six tuna canneries in Socsksargen.