MercoPress. South Atlantic News Agency

Argentina lowers export tariffs for processed hake, shrimp and squid

World markets’ softer demand for the three main fisheries export items forced the measure

Argentina lowered fisheries’ export tariffs to all processed goods made out of hake, squid and shrimp. The measure applies for six months and makes effective the promise from Economy Minister Amado Boudou earlier in the month.

“The Argentine fishing industry did not escape the context of the international economic crisis and suffered its effects because of the consumption contraction in developed countries”, reads the official decree 1243/2011 in the official gazette.

The measure looks to recover the fishing industry’s loss of competitiveness and given the industry’s positive impact on regional economies and since fish produce is a minor component of the basic family food basket, the effects on the domestic market will be mostly unnoticed, argues the decree.

“Fish products demand contraction was particularly severe in the European Union that is the main customer for Argentine fish produce”.

Argentina exports on average over a billion dollars of fish produce annually which is equivalent to 90% of the country’s total production and employs over 25.000 people.

The decree states that he international price of shrimp in 2009 dropped to 6.000 dollars the ton, 32% less than in 2005, which made covering costs a very difficult task. Similarly with squid which in 2009, because of diminished catches, forced the anticipated closure of the season. Furthermore soft demand from Europe and China forced prices down where they remained for some time and when they effectively increased, supply was not there.

The decree says that the price of export squid was up 35% in 2009 over 2008, mainly because of limited supply having reached 1.203 dollars the ton on average.

As to hubbsi hake, imports from the EU dropped 8% in 2009 compared to 2008. While from 2003 to 2006, Argentine hake exports increased 153% in value and in the following years growth was a modest 5% per annum, in 2008 the price remained stagnant or at the most 1% higher. But in 2009 the average price for a ton of exported hake hubbsi was 2.225 dollars, which was 19% less than the previous year, points out decree 1243/2011.