NLIS 4
September 15, 2005
(Fisheries and Aquaculture)

 


Minister meets with shrimp harvesting sector on problems facing industry

Fisheries and Aquaculture Minister Trevor Taylor has met with the Fish, Food and Allied Workers� (FFAW) Union and representatives of inshore shrimp harvesters to discuss possible options to address the ongoing problems facing the province�s shrimp industry.

The parties met the day the European Union (EU) reinstated the 20 per cent tariff on Canadian shrimp that was temporarily reduced. The EU had reduced the tariff on cooked and peeled shrimp to seven per cent to assist Thai shrimp producers affected by the tsunami. The EU has now closed a resulting loophole that allowed Canadian shrimp producers the same access, which has effectively shut this province out of that market once again.

�We know the problems facing the harvesting sector and what needs to be done to allow the shrimp industry to grow,� Minister Taylor said. �We have the raw material and an identified market that is hungry for it, but the high tariff limits our ability to access this market and has virtually shutdown the industry. The federal government must take immediate action to find a solution to the tariff issue that is impeding the growth of this industry.�

During the meeting, Minister Taylor and representatives from the shrimp committees and the union discussed the problems facing the industry and have agreed that the 20 per cent tariff is a significant impediment to long-term industry viability. Federal International Trade Minister James Peterson has agreed to meet later this month with Minister Taylor to discuss the issue.

Minister Taylor will also be raising the issue with his counterparts in Quebec, Nova Scotia and New Brunswick, which are also negatively impacted by the unreasonably high tariff, and at the Canadian Council of Fisheries and Aquaculture Ministers in October.

�We had a productive and positive meeting with the union and harvesting sector. We all agree that the EU tariff must be lifted and we have to present a united front to the federal government to get them to make this a priority,� Minister Taylor said. �We discussed options for getting the EU tariff lifted, as well as putting restrictions on the 20 per cent of industrial shrimp caught by the offshore that goes into the European market tariff-free.�

Market conditions exacerbated by the high 20 per cent tariff on product entering the EU have resulted in the early closure of nearly half the province�s shrimp plants. The shrimp season usually extends into October. Further compounding the problem is that approximately 15 to 20 per cent of the shrimp caught by the offshore fleet is sold to our competitors in Iceland and Norway, only to end up competing, duty-free, against our local cooked and peeled shrimp in the EU. The tariff makes industrial shrimp from the offshore fleet too expensive for our local plants, and this ultimately results in an export of jobs.

The limited annual quota of 7,000 tonnes of shrimp that is permitted into the EU at a reduced tariff of six per cent was filled in mid-January. Since then, any product entering the EU is subject to the 20 per cent tariff and this ultimately translates into a lower price for harvesters and processors.

The harvesting sector is also facing increased fuel and insurance costs. This combined with a weak U.S. market as a result of the strong Canadian dollar and the EU tariff is having a devastating impact on the province�s shrimp industry, which employs approximately 3,800 people.

Media contact: Tracy Barron, Communications, (709) 729-3733, 690-6157

2005 09 15                              12:10 p.m.


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