WTO’s NAMA policy threatens RP tuna industry

The fisheries sector, particularly, the tuna-handline industry is threatened by World Trade Organization (WTO) tariff policy on Non-Agricultural Market Access (NAMA) products.

Arsenio Tanchuling, executive director of the non-government fisheries organization Tambuyog Development Center (TDC) said the tuna handline industry, with 20,000 hook and line fishers in Socsargen region, would be hit hard once the country’s WTO negotiators bow to pressure by developed countries to include tuna and other tuna products among those that would be bound and subjected to the WTO tariff reduction formula on NAMA products.

"The binding of tuna will initially subject the product to a tariff reduction rate of up to 48 percent, after which further reductions will be applied until tariff is reduced to zero. This process obliges the government to cut further its already low tariffs in tuna and in turn deprive locally produced tuna of protection from cheap imported tuna," Tanchuling explained.

TDC’s concerns echo the Alliance of Tuna Handliners’ demand for the government’s exclusion of tuna from the list of NAMA items to be bound in the WTO.

In an April 18, 2006 letter addressed to the Bureau of Fisheries and Aquatic Resources, the alliance listed yellow-fin-tuna, big-eye tuna, albacore and blue marlin as among those that must be in the exclusion list.

Tanchuling expressed their support to the alliance’s demand since "the exclusion list would shield sensitive products from adverse impacts of WTO tariff reduction policies."

TDC noted that at least 85 fisheries products including tuna are in dire need of such protection since it will provide the entire fisheries industry the chance to develop in such a way that the production and processing subsectors are integrated.

"Without which, canneries and processors would become more and more dependent on highly subsidized, and thus cheaper foreign products while the 1.7 million municipal fishers are further marginalized from the industry," said Tanchuling.

He noted that due to the yearly subsidy of $100 million in post harvest facilities and of $1 billion of Taiwan and China, respectively, their products are cheaper, thus currently preferred by local canneries.

TDC warned that since the protective mechanism of tariff is removed once tuna is subjected to WTO policies, its ultimate result is the loss of livelihood of small hand-line fishers.

"We already had a preview of this effect; when the government implemented Fisheries Administrative Order 195, the price of tuna shot down from P120 to P60 a kilo since 2003 resulting to the non-operation of 71 out of 119 fishing boats and job loss for 2,380 handline fishers in General Santos alone," stressed Tanchuling.

FAO 195 is a fishing ordinance that allows entry of non-export grade tunas in the course of transhipment of fish products by foreign companies.