US changes in Andean trade pact to benefit RP tuna exports

Trade and Industry Secretary Manuel Roxas II said over the weekend that the amendments made by the US government in the Andean Trade Preferential Expansion Act (ATPEA) would benefit the Philippines’ tuna exports to the US.

The ATPEA allowed exports of pouched tuna from several South American countries to enter the US market duty free.

The US has inserted some changes in the ATPEA which now peg the Philippines’ minimum access volume (MAV) to US tuna consumption following a protest from the Philippines that the zero tariff granted to several Andean countries discriminates the country’s canned tuna shipments.

Previously, the Philippines’ MAV was pegged to US tuna production which has been declining.

Earlier this year, Roxas expressed "extreme disappointment" over the passage of the ATPEA, warning that pouched tuna "poses a direct competition to Philippine canned tuna."

Roxas had even predicted a potential loss of P53 million for the local tuna industry.

US Trade Representative Robert Zoelick, however, during his recent visit to the Philippines, was finally able to convince Roxas that the Philippines stands to benefit from the revisions in the ATPEA.

Thus, following his meeting with Zoelick, Roxas confirmed, "we recognize that the change in policy is positive," adding that "we acknowledge that the changes serve to lessen the threat to the Philippine tuna industry."

"But we should continue to try to remove the threat arising from the difference in tariff treatment for pouched and canned tuna," Roxas said.