Spanish canned tuna company Calvo is in hot water with Costa Rica over allegations of unfair trade practices.
The Costa Rican Chamber of Industry for Tuna (CATUN) and Ministry of Economy, Industry and Commerce claim that, in an effort to gain market share in Costa Rica, Calvo is illegally dumping canned tuna in Costa Rica at prices lower than in El Salvador, where its processing plant is located.
CATUN, which represents Costa Rican tuna canners, is seeking "compensatory measures in accordance with the magnitude of the damage occurring to the domestic industry," said Executive Director Asdrubal Vasquez.
Vasquez is demanding that a tariff be imposed to offset the dumping and to "level the playing field," in accordance with World Trade Organization regulations. CATUN claims that the dumping has resulted in the loss of more than 300 jobs in Puntarenas, the country's largest province.
Calvo is Spain's biggest tuna processor, founded in 1940 by Luis Calvo Sanz. The company, which is 77.8 percent family-owned, invested EUR 32 million (USD 47 million) to build its El Salvador processing plant, employing around 800 workers. Since 2003 it has used the facility to supply the Central American, Mexican and U.S. markets.
The El Salvador plant has been exporting to Costa Rica since 2005, taking advantage of CAFTA (Central America Free Trade Agreement) tariff rates of 15 percent. As part of the agreement, since January Calvo has been paying a rate of just 0 percent for tuna in oil and 2.2 percent for tuna in water.
"The market in Latin America has a low level of penetration when it comes to canned tuna, and it has a high potential for growth," said Manuel Calvo García-Benavides, CEO of Grupo Calvo. "The per-capita consumption figures vary widely. In Brazil, annual tuna consumption is 0.13 kilograms per person. In Chile, consumption is 1.4 kilograms per person; in Argentina, 0.4 kilograms; in Mexico, 0.3 kilograms; and in the United States it is 0.9 kilograms per person. In Europe, average per capita consumption is 1.45 kilograms. The highest levels are in Italy (2 kilograms) and Spain (2.15 kilograms)."
September 13, 2009
