MercoPress. South Atlantic News Agency

Chilean fishing industry protests FTA with China

The Chilean fishing industry is unsatisfied with the tariff reduction timetable contemplated in the recently signed free trade agreement with China and is demanding a total ports ban for Chinese vessels operating in the area next to its 200 miles EEZ.

Sonapesca, the strongest federation of private fishing interests in Chile believes the free trade agreement with China leaves the local industry totally exposed to increased Chinese competition.

Cristian Jara, Sonapesca CEO said that to start with "law abiding Chilean vessels must try to compete with the "indiscriminate" catch of yellow mackerel in the outer limits of Chile's EEZ by Chinese vessels", which have no respect for conservationist policies.

Faced with this situation in the past, the Chilean government restricted local ports to Chinese vessels operating in the immediate 200 miles plus area, "but not totally" as Sonapesca has always demanded.

Mr. Jara insists that besides this "discriminatory" situation, the Chilean industry must now face "disloyal competition" because since the new Chilean Fisheries bill became effective, licences have almost trebled.

Sonapesca's CEO further points out that the free trade agreement with China contemplates a ten year period gradual tariff reduction for Chilean fisheries produce, including fish meal. However for Chinese fisheries produce, the reduction is immediate.

This could lead to the "absurd situation by which the Chinese will catch in the high seas with no respect for the law or conservation, and at the same time can sell that produce to Chile at zero tariffs. But the Chilean industry to compete will have to purchase annual licences which can range up to a quarter million US dollars per vessel per annum, without taking into consideration all the other regulations", highlighted Mr. Jara.

"This is most unfair and disadvantageous for Chilean fisheries and industry".

Yellow mackerel is one of the main components for making fish meal of which Peru and Chile are the world's leading exporters.