Due to the serious crisis, the fishing industry also requires a suspension of withholdings. The claim comes from the Latin American Foundation for Fisheries Sustainability (FULASP) in conjunction with the main chambers that make up the industry of the sector and in the midst of the critical situation that national activity is going through. They demand that they also value “the commitment and passion of the man of the sea,” and that fishing be included in the package that would suspend Export Rights to agricultural and livestock activity, such as announced by the President of the Nation, Javier Milei, at an event in La Rural.
They affirm that the crisis in the world market, high internal costs, and the exchange rate ironing show a very bleak present and future scenario for the fishery industry. The consequences of the war between Russia and Ukraine, inflationary indicators in the countries purchasing products, the continuity of restrictive measures installed in the Asian market following the Covid-19 pandemic, the significant decline in demand and fall in prices, added to the competition that generates aquaculture, has led to a very unfavourable context for all companies in the national flag.
FULASP warns that the cost structure has become unviable due to several factors, such as “the increase in capture and production costs, the increase in the prices of fuels, oils, and packaging, the higher distribution expenses, due to the lack of maritime activity, the increase in port costs, the impact of inflation in salary adjustments, and the accumulated exchange rate delay from previous years.”
Currently, to cite some examples, hubbsi hake, the frozen fillet prepared on land in containers of more than 1 kilo have retention of 3%, while the clean tube of squid in containers of up to 1000 grams is taxed at 5%. For its part, the shrimp easy peel or tail on, for containers of up to 1 kilo, pay 1% export duties, and in the case of larger containers, it is 3%, while the queues in containers of up to 2 kilos are taxed at 3% withholdings. Finally, the entire crustacean is reached with 6% in boxes of up to 2 kilos, while the export of glues in larger blocks 2 kilos for reprocessing in other countries are taxed at 9%.
In this context, the organization recognizes that national production is going through a stage of decline that will result in a resounding industrial decline if measures are not taken with the nature of urgency, in view of which the immediate intervention of the National State is required to alleviate the situation and improve the competitiveness of the sector.
The request will be submitted in the next few hours to the Secretary of Bioeconomy, the Federal Fisheries Council, and the Undersecretary of Aquaculture Resources and Fisheries of the Nation, combining proposals and in line with the proposals of the main organizations that represent the activity throughout the country.
The idea is to take advantage of the announcement that President Milei has given for the field in the closing of the 81st edition of the Indoor Autumn Angus Exhibition in La Rural, called by the Argentine Angus Association (AAA), and request that it be extended to the fishing activity as a whole.
In this regard, Raul Cereseto, President of FULASP, explained that it is urgent to “suspend for a minimum period of 180 days the Export Rights for the positions tariffs of the Common Nomenclature of MERCOSUR (N.C.M.) ” corresponding to all fishery products” because they consider it “fundamental to improve the competitiveness of the entire productive chain, encouraging the development of production and adding national value, in addition to boosting sales to foreign markets and significantly increasing the income of the entire aquaculture industry.”
In that sense, the representative of the organization expressed that it would be very important that it also “the commitment and passion of the man of the sea” be recognized in the facts, paraphrasing the sayings of the highest national leader, who, in the same way, highlighted agricultural and livestock producers.
In this way, the initiative states that “it is a totally rational request, which is in line with the President’s statements and with similar measures that have been taken with other sectors, such as dairy, in which the National Executive decided extend the suspension of export duties for all dairy products for 1 year, starting on July 1, 2024, and until June 30, 2025.”
It is also stated that “the same thing happens with the automotive industry, where the Government decided last April to maintain the exemption from export duties for incremental exports that came into force in 2021 but whose validity had expired last December.”
Finally, Cereseto expressed that “it is imperative that the National Government contemplates the claim and works towards making an alignment.”
Raul Cereseto, for more insights and discussions on TikTok, Facebook, Instagram, LinkedIn, Threads, and YouTube. Follow @rmcereseto across platforms to stay updated!
