With a new round of negotiations on a free trade agreement (FTA) between the E.U. and Thailand slated for 29 September, Europe’s fishing industry is again warning of severe risks it would incur if tuna is included in the deal.
Thailand is the world’s leading producer and exporter of canned and preserved tuna – accounting for over 22 percent of global production and more than 29 percent of global exports. Between 2020 and 2023, the E.U. imported around 40,000 metric tons of Thai fishery products annually despite existing tariffs of 24 percent on tuna loins and canned tuna, according to data from fishing industry representative body Europêche.
Removing these tariffs would expose European fleets and processors to even more “aggressive competition” than it already faces from Thai exporters, Europêche said.
Europêche Tuna Group Director Anne-France Mattlet told SeafoodSource that if Thai tuna products gain duty-free access to the E.U., European processors will face increased pressure from retailers to lower their prices, which in turn, would likely force tuna vessels to lower their selling prices as well.
“This combination of price pressure and increased competition will threaten our profit margins and, ultimately, our economic viability as it’s impossible to compete with products produced under lower standards,” she said. “We strongly advocate for tuna to be treated as a sensitive product and excluded from the free trade agreement.”
If tuna is included in the deal, she insisted that strict safeguards would be needed in order to protect the E.U. industry and European consumers, whereby the tuna must come from E.U. vessels, with no exceptions, and be produced under internationally recognized labor standards.
Ratification and compliance with international labor standards, thus, should be a prerequisite, Mattlet said, adding that the rule of origin for products should only apply for tuna that is wholly obtained from E.U. vessels, with no exemptions or cumulation. Without that in place, this could allow, for example, tuna caught by Indonesian vessels that have a poor compliance record with Indian Ocean Tuna Commission (IOTC) regulations and a higher likelihood of engaging in IUU fishing to enter E.U. markets freely, she added.
Conversely, according to Europêche, Europe’s tuna fleets, particularly purse seiners, operate under some of the strictest environmental, social, and labor rules in the world, with vessels subject to continuous satellite monitoring, 100 percent scientific observer coverage, and compliance with E.U. fisheries control legislation. Furthermore, many fleets are certified by the Marine Stewardship Council (MSC) and adhere to International Labor Organization (ILO) Convention 188, alongside other recognized labor and sustainability standards.
Europêche highlighted that despite formally ratifying ILO Convention 188, Thailand has been criticized for failing to implement it and has yet to adopt several other key human rights conventions. Additionally, a 2023 European Commission audit flagged shortcomings in Thai health and food safety standards.
Besides the threats the inclusion of tuna in the FTA may pose to the European fishing industry and consumers, Europêche also argues it could undermine longstanding supply chains with African partners.
Mattlet said the E.U. has established several sustainable fisheries and partnership agreements (SFPAs) in Africa and that these have been “especially successful” in developing a tuna-processing sector in Seychelles, Mauritius, Madagascar, and Côte d'Ivoire.
“These agreements help support sustainable tuna production and processing while fostering local economic development. The E.U.’s purse seine fleet has built strong commercial relationships with local operators, utilizing their facilities and contributing to the overall economy,” she said. “In addition, [other existing] FTAs allow tuna caught by E.U. vessels and processed in these countries to enter the E.U. duty-free, supporting both the E.U. market and local economies. However, this advantage would be undermined if Thai tuna, produced under lower standards, enters the E.U. market at a cheaper price.”
Underlining this, Mattlet pointed to a study conducted by Prof Patrice Guillotreau, an economist from the French Institut de Recherche et de Développement (IRD), on the macroeconomic impact of regulating tuna fishing on a small island economy – namely the Seychelles. Published last year, this analysis suggests that a 12 percent decline in canned tuna exports would result in an 8.8 percent deviation from the real gross domestic product trend after several years, impacting all components of aggregate demand, such as household consumption, investment, government spending, and more.
“All the drivers of aggregate demand are affected starting with the most important one (exports) so that the entire domestic economy depends on foreign visitors and tourist activities, increasing its vulnerability to a new shock such as a pandemic or an international crisis,” the study said.
