Tuna, mushroom exports blocked by EU barriers

Tuna, mushroom exports blocked by EU barriers

JAKARTA (JP): An official reported yesterday that Indonesia's exports of canned mushrooms and canned tuna to the European Union have been blocked by low quotas as well as high import tariffs.

Chairman of the National Agency for Export Development Rudy Lengkong noted that the European Union (EU) has set an annual quota of only 4,000 tons for Indonesian exports of canned mushroom, as compared to a quota of 24,000 tons for Poland.

Lengkong said that Indonesia's canned tuna exports to the EU are also limited to an annual quota increase of six percent.

"How can we earn more foreign exchange from the exports of processed foods, especially canned tuna, if their increase is limited to only six percent," Lengkong said.

Lengkong told journalists, after chairing a business meeting between Indonesia's processed food producers and executives of the United Nordic Inc. Ab. at the Hilton Hotel yesterday, that the entrance of Indonesia's canned tuna into the EU is also hindered by higher import tariffs.

He noted that the EU imposes an import tariff of 24 percent on canned tuna from Asian countries, including Indonesia, as compared to only 18 percent on those from African, Caribbean and Pacific countries.

"If the import tariffs on us are higher than those given to other countries, our canned tuna will not sell well over there because the end prices will be more expensive," Jim Wiryawan of PT Mantrust said.

He noted that EU countries often argue that the lower import tariffs imposed on African, Caribbean and Pacific countries' products are based on the General System of Preferences, and therefore should not bear problems for other countries.

Indonesia's exports of processed food increased by 15 percent to US$656.3 million in the January-October period of last year from US$569.2 million in the corresponding period of 1993.

Minister of Trade Satrio B. Joedono has raised concern over the EU's unequal treatment of agricultural product suppliers.

Joedono hinted that the EU has awarded very low import tariffs, up to zero percent, on agricultural products from Latin American countries.

The reason behind giving them low import tariffs, Joedono said, is to divert Latin American countries from the drug business into agriculture development.

"We have also declared war on drug trafficking and have been quite successful. But the developed countries grant nothing to us for our success," Joedono contended. (rid)