Tuna canning process. (Photo: Tecopesca)

Tuna industry requests government support to improve competitiveness

Representatives of the Ecuadorian tuna industry have requested support from the Government to be able to face the problems faced due to the strong competition from Asian countries and the loss of profitability.

Gustavo Núñez, vice-president of the Ecuadorian Chamber of Tuna Industrialists and Processors (CEIPA), said that they have requested support from the current government because, in his opinion, the previous one "had overwhelmed" this sector by making it lose competitiveness and despite the fact that an agreement was signed with the European Union (EU), that did not mean an increase in exports, reported El Universal.

He explained that this situation is due to the fact that the EU also sealed trade agreements with nations such as the Philippines or Thailand, which enjoy greater benefits in the draw back system (tax devolution) of up to 12 per cent of their Governments while in Ecuador, 3 per cent is granted.

According to Mónica Maldonado, CEIPA executive director, these circumstances have affected that in some tuna processing companies profitability in the last five years has been between 0 per cent and 2 per cent.

For his part, Olmedo Zambrano, CEIPA president, indicated that they have sent Minister of Foreign Trade Pablo Campana the document "Strategies to boost the competitiveness of the tuna sector", which they hope will be considered in the new Organic Law of attraction of private investment and employment generation that will go to the Assembly.

One of the measures that CEIPA promotes in its 'Blue Book' is that the system cancels the values ​​generated by the simplified draw back system for 2018 as a matter of urgency. In this regard, the chamber notes that in 2016 they received about USD 20 million after the earthquake that year; last year there was no such contribution, and for this year, some USD 37 million is expected.

They also request the values ​​generated for certificates of tax credits for 2018 be cancelled; the exoneration of the Foreign Exchange Tax for external financing operations; reduction of five percentage points in Income Tax; and the 0 tariff in the Value Added Tax on imports of goods for productive transformation processes.

In addition, they request that a Tuna Development Zone be created, and that international banking can be established in the country in order to lower financial costs.

The sales abroad of the Ecuadorian tuna industry last year accounted for 7 per cent of the value of the country's non-oil exports.

Source: El Universal

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