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EU Seafood Shortfall Shores Up Market Opportunities
By Danielle Borremans
Restrictions on seafood
catches are old news for European Union (EU) member countries,
but there is a flip side, one providing a wide open window of
opportunity for U.S. seafood exporters.
Leading the parade of U.S. seafood exports to the EU: Fresh and canned salmon, at $34.2 million and $87.6 million, respectively. Salmon products account for 30 percent of total seafood exports to the EU. Total seafood exports are estimated at $427 million.
After decades of declining stocks, the EU began enforcing conservation efforts in the 1970s through fisheries policies. But only since 1983 has an effective 20-year plan been in place.
With the accession of Spain and Portugal in 1986, the number of people employed in fishing in the EU doubled, and the operation of an effective Common Fisheries Policy (CFP) became more necessary. Besides introducing conservation plans, the CFP restructured the EU fishing fleet--resulting in fewer, but more modern vessels.
Since 1986, the combined annual harvest of the EU countries has ranged between 6.9 and 8 million metric tons. That's a lot of fish; however, the harvest falls short of demand. In 1997, it took almost 9 million tons to meet the needs of the fish processing industry and domestic consumers.
Most of the domestic catch goes to the fresh fish market, leaving the processing industry short of raw product. The faster growing processed fish sector (it doubled between 1985 and 1994) turns to imports to supply its factories.
A Common Policy for All EU Fisheries
The CFP, budgeted at ECU 9431 million in 1997, is unique in that it is run chiefly by member countries and producer organizations, with European Commission guidance and approval. The main budget items are for structural policy and fishery agreements with third countries.
The CFP has used several Multi Annual Guidance Programs (MAGP) to carry out its goals. The most recent MAGP IV began in 1997 and will run until the end of 2001.
The CFP was designed to help EU members make better use of available resources--to improve productivity and to adapt available products to market requirements. Immediate goals of the CFP:
1In October 1997, $1 = ECU 0.894.
Fishing Agreements Augment Catch
EU dependence on fishing in third-country waters has grown over the years, magnifying the importance of fishing agreements. Two main types of agreements exist: reciprocal (fish for fish) and financial compensation (fish for money). The financial burden of reimbursing third countries for EU fishing rights may pose future controversy in the EU.
The European Commission, with 26 fishing agreements in its back pocket, prefers a partnership approach with other countries--cooperation in the form of aid to the fishing industry of the third country or the set-up of joint venture companies.
Since 1995, all boats fishing in EU waters, as well as EU vessels operating in non-EU areas, must have a license conferred by member states. As a further control, the EU proposes total allowable catch (TAC) quotas, which are distributed by fishing zone, member state and species.
Shortages Invoke Trade Liberalization
While international trade agreements govern the trade in EU fish products, the import system has three essential working parts: the common customs tariff (CCT), the reference price scheme and the safeguard clause.
In using the CCT, the EU tries to balance the needs of the processing industry while protecting domestic fishermen's income. However, preferential regional and bilateral trade agreements or autonomous tariff reductions often bypass the CCT.
EU import duties for fish and fish products range from zero to 25 percent (exact amounts are found in EU Official Journal L 238/96).
The three types of tariff rate quotas (TRQs) in effect are Uruguay Round (found in Annex 7 of the EU's tariff schedule), autonomous and bilateral.
The EU monitors and maintains reference prices for fish in the EU, based on the market price data from member states. Imports below the reference price can trigger safeguard procedures.
Not used very often because of its complicated applications, the safeguard clause, Article 24 of Regulation (EEC) No. 3759/92, was intended to protect EU fishermen from lower priced imports.
The EU has installed several intervention mechanisms such as withdrawal prices, carry-over aid and private storage aid to help bridge gaps between supply and demand. Producer organizations play an important role in carrying out these mechanisms. The most widely used of these tools, withdrawal prices, is limited to 24 specific products.
There are several issues that U.S. exporters need to be aware of--anti-dumping measures imposed on Norway's salmon exporters; a ban on fresh imports from China and microbiological exams of its processed products; and a temporary ban on imports from India, Bangladesh and Turkey because of hygienic concerns.
Importing Requirements
The principal EU directives for seafood imports include 91/492 for live bivalve mollusks and 91/493 for fish and fisheries products and horizontal directives 90/675 and 79/112.
U.S. exporters must be certified through the U.S. Food and Drug Administration to export to the EU. The U.S. establishment must appear on the current approved list received by the inspection border posts. All products must be labeled with the country of origin, the central file number (CFN) of the establishment of origin and the "best before" date. The CFN number must appear on the health certificate.
Exporters of live bivalve mollusks should check with agricultural or fisheries personnel in U.S. embassies before shipping, as requirements vary by EU member state.
EU Fishing Facts
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The author is an agricultural specialist with FAS' U.S. Mission to the European Union in Brussels. Tel.: (9-011-322) 508-2760; Fax: (9-011-322) 511-0918; E-mail: AgUSEUBrussels@fas.usda.gov
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