Significant Progress Made in Reducing European Seafood Tariffs

The European Union (EU) has indicated it will soon be making changes to its tariff structure that will benefit Canadian seafood producers. Most notably, the EU will allow up to 20,000 metric tonnes of Canadian shrimp to enter European markets with no tariff applied under the Autonomous Tariff Rate Quota (ATRQ). Since 2007, this amount of Canadian shrimp has been entering the EU with a six per cent tariff.

The Government of Newfoundland and Labrador has been working with the Government of Canada and the province�s fishing industry to address the issue of EU seafood tariffs. This regulation will apply to products intended for further processing. It is expected to come into effect January 1, 2010.

�This move by the EU represents great progress on Canadian seafood tariffs and will assist our fishing industry at a time when markets are experiencing great challenges,� said the Honourable Tom Hedderson, Minister of Fisheries and Aquaculture. �This comes at a critical time for the province�s fishing industry, in light of the impact of the rising Canadian dollar and the slowdown in global seafood markets. These tariffs are one of the most important issues facing our province�s seafood processing sector and every reduction in tariffs provides an opportunity to open up European markets for Canadian seafood products.�

Under the Williams Government there has been increased budgetary support to address tariff and trade issues, as well as increased missions to the EU. The Honourable Danny Williams, Premier of Newfoundland and Labrador, addressed these issues with the EU earlier this year. Since the Premier�s visit to Brussels last July, he has continued to make representation to the EU on tariffs. As well, Minister Hedderson has raised seafood tariffs as a major concern with the Government of Canada and in meetings with senior EU officials.

In 2004, the shrimp ATRQ only provided for 7,000 metric tonnes of Canadian shrimp to be allowed into the EU at a reduced tariff of six per cent. For the past three years, the amount of product that Canada can sell to EU markets had increased to 20,000 tonnes; however, producers were still subject to the six per cent tariff.

As part of the expected changes to the EU tariff structure, it is also anticipated that there will be no tariff on yellowtail flounder, with an ATRQ of 10,000 tonnes. Past EU tariffs on yellowtail flounder were as high as 15 per cent.

�The elimination of tariffs for the yellowtail flounder ATRQ would improve market access for this product and should benefit workers on board local trawlers and some seafood processing facilities,� said Minister Hedderson. �This achievement complements the efforts of the seafood processing sector and my department is working with industry to develop new markets for yellowtail flounder in the EU.�

The Provincial Government will continue to address tariff and trade issues for other seafood species such as Atlantic cod, herring, lump roe and crab. As well, the province will work toward enabling Canadian seafood products to enter the EU in a more highly processed state, allowing for improved branding of the final product form.

�Our government is seeking the complete elimination of all tariffs on Canadian seafood product entering the EU,� said Minister Hedderson. �This will continue to be our long-term goal as the Government of Canada moves forward with European free trade negotiations and World Trade Organization processes.�

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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 

2009 10 28                                                    2:05 p.m.