The collaborative efforts of the Provincial Government, the Federal Government, industry and labour have been successful in achieving progress in addressing the amount of shrimp that can enter the European Union (EU) at a reduced tariff. The proposal to have the autonomous tariff rate quota (ATRQ) increased from 10,000 MT of cooked and peeled shrimp to 20,000 MT will now be considered by the EU Council of Ministers working group. This follows an increase in the ATRQ last November from 7,000 MT to 10,000 MT. Under the ATRQ arrangement, shrimp can enter the EU at a reduced tariff.

"Our government is very pleased that the working group is considering the proposal put forward by the Government of Canada," said the Honourable Tom Rideout, Minister of Fisheries and Aquaculture. "This is the result of a tremendous lobby effort by government, industry and labour."

The Provincial and Federal Governments have been actively lobbying to have the 20 per cent tariff on cooked and peeled shrimp into the EU eliminated. During this government�s first year in office, Premier Williams traveled to the EU and raised the issue of the shrimp tariff. In 2006, Minister Rideout led a delegation to Brussels to bring forward the case again. The delegation included local industry and labour representatives.

"The tariff is prohibitive and negatively impacts the ability of our provincial industry to compete in the large European marketplace. This is a critical market for developing our province�s shrimp sector," said the minister.

This tariff has placed Newfoundland and Labrador at a competitive disadvantage compared with other jurisdictions such as Greenland, Iceland, Norway and the Faro Islands, which can send its cooked and peeled shrimp product into the EU without incurring any tariff at all.

"We�re very optimistic," said the minister. "This is great progress. However, there are several more steps in the process. We understand the next consideration of the proposal by the working group will be on June 14. After that, the proposal will be considered by a committee of deputies and then the Council of Ministers. While it is difficult to estimate, it will likely come into force in early July of this year."

It is important to note that Newfoundland and Labrador producers still face a six per cent tariff under the ATRQ, which competitors in the industry do not face. "Our government will not be satisfied until the tariff is completely eliminated," said the minister. "Our main competitors have negotiated deals with the EU on seafood products. Canadian producers deserve no less. Our government insists that the Federal Government negotiate comparable access. We will continue to work with industry to eliminate all barriers impeding trade. We will also continue to lobby the Government of Canada to have the trade barriers eliminated through either bilateral or multilateral trade agreements."

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Media contact:
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
oatesll@gov.nl.ca

2007 06 06                                                3:05 p.m.