MercoPress. South Atlantic News Agency

Argentina re-implants export benefits to help fishing industry

Gerardo Nieto

Argentina re-established benefits to fisheries exports to the tune of 20 million US dollars annually according to reports in the Buenos Aires press. Benefits range from 1% to 10% depending on the added value to the exported product.

Gerardo Nieto, Argentina's Fisheries Director said the resolution was signed last Friday and covers 50 products including such traditional as hubbsi hake filets and squid but also trout and other species. However the benefit will not mean a clear plus for the Argentine fishing industry because as with agriculture and livestock, they are subject to an export duty, similar to those which have triggered the farmers' ongoing conflict. Nieto said the decision was taken following the current difficulties faced by the fisheries sector with soaring costs, neutral profitability and collapse of international prices for such Argentine staple exports as squid and shrimp. The Argentine official said that several big fishing companies are under protection from creditors and "an estimated 50.000 jobs are on the line". Nevertheless Nieto pointed out that the fisheries department target, and the renewed benefits, is to promote exports with the most added value possible. Argentina's fisheries exports last year reached 540.000 tons equivalent to 1.1 billion US dollars which represents a 14% drop in value compared to 2006. According to the Argentine press this is the second sector, behind the poultry industry, to be benefited with export incentives. The resolution includes an annual review of the whole benefits system in November.