Uruguayan fisheries are facing a bleak future after the poor performance in the last two years of the country returns.
The fishing industry is failing to recover markets, and during 2014, it will have to cope with the duty benefit curtailment to enter the European market.
Until about 24 months ago, the fishery resources of the country were mainly aimed at Europe, which bought most of the hake caught, and Africa, where whitemouth croaker and stripped weakfish were sent.
However, in 2012, there was a reduction in shipments to the European market, and in recent months, seafood exports to African territory also fell.
Until October 2013, Nigeria was the main buyer of whitemouth croaker and imported 70 per cent of the production of this species. Nevertheless, from that date, the Nigerian government decided to close the import market for fish.
According to the head of the National Directorate of Aquatic Resources (Dinara), Daniel Gilardoni, Nigeria bought fish for USD 1,200 million annually in different parts of the world, newspaper El Pais reported.
The official said that there are different reports on the closure of the Nigerian market.
“They are contradictory because some versions say there is no prohibition, but no purchases are made,” said Gilardoni.
“Others argue that the government is re-planning all fish imports because it wants to develop local aquaculture,” he added.
That strategy would involve a 30 per cent reduction of the total fish import licenses, and the purchase of lower value species, such as sardine or mackerel.
Gilardoni said that after Nigeria’s decision, the Uruguayan Executive carried out multiple formalities to learn more about the situation, for example, before the World Trade Organization (WTO), together with Iceland and Norway.
Dinara director said that if import restriction of some species, such as whitemouth croaker, takes place, it would be necessary to see how Uruguay stands in that scenario, because it would be a subject of trade discrimination against the country.”
Moreover, the Chamber of Fishing Vessel Owners of Uruguay (UPAC) president, Ricardo Piñeiro, warned that 2014 would be a difficult year for fishing.
“With no sales of whitemouth croaker to Nigeria, there will be pressure on other markets and this will cause a price cut, because in order to get into them you have to reduce prices,” he said in a statement to El Pais.
According to statistics from 2013, Uruguay exported fish and shellfish worth USD 135 million, that is to say, 25 per cent less than in 2012 (USD 180 million).
In 2011, foreign sales had generated USD 219.3 million.
Last year, another event occurred that stopped the sectoral activity: With the collective agreement success, employers and union had to negotiate new wage adjustments and working conditions. During this period, the union sector paralyzed for four months the activity of the fishing fleet. Then the new pay agreement was signed, which will run until 2016, highlighted Piñeiro.
This is in addition to the fact that since 1 January 2014 Uruguay is excluded from the Generalized System of Preferences (GSP) of the European Union (EU). Therefore, duty benefits will also be lost for merchandise entering the Community continent.
“The GSP loss will affect the sector, but it will be important to see how Uruguay stands regarding competitiveness with other countries that have also lost it, like Argentina, for example,” observed Gilardoni.
He explained, “It’s not like meat that has sanitary barriers, but one can work them out and open markets. Fishing has no such barriers and international insertion is not the result of a health negotiation; it is a tariff negotiation. And such matters are more complicated.”
According to Gilardoni, a trade agreement between Mercosur and the EU would be “extremely valuable” for the national fisheries sector.
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