Countries around the world implement tariffs and bans on foreign products primarily to protect the competitiveness of domestically made products, ensure products entering their borders are safe, and limit the number of products that enter their markets stemming from forced labor and other unsafe working conditions. However, these practices – justified or not – have hampered the growth of seafood industries in developing countries, according to a new report conducted by the United Nations Conference on Trade and Development (UNCTAD).
UNCTAD's “South-South Trade in the Marine Fisheries and Aquaculture Sectors” report found high tariffs – as well as a myriad of non-tariff barriers designed to protect domestic industries – disincentivizes developing countries from participating in global value chains, especially within seafood.
According to UNCTAD, South-South trade has nearly doubled in value terms over the past decade, rising 96 percent in the period between 2012 and 2022, compared to a 51 percent overall rise in trade globally. The report identifies China, Chile, Indonesia, and Vietnam as leading developing countries in terms of seafood trade, though much of that exchange is conducted with developed countries.
The report identifies tariff reductions and closer international coordination as ways to boost seafood production globally. But in lieu of the difficult process of pushing developed economies to implement tariff reductions or remove seafood bans, the report suggests developing nations implement trade-friendly regulations among themselves, bolstering “South-South trade” – a term referring to the exchange of resources, technology, and knowledge between developing countries, also known as countries of the Global South – in the process.
UNCTAD's Global System of Trade Preferences (GSTP), a group aiming to drive trade and investment among developing countries, is one such initiative. Key seafood-producing nations including India, Indonesia, and Thailand are among the 42 countries that have joined the GSTP. The group has proposed tariff cuts of up to ...
