Friday, November 30, 2007 JPEPA bad for tuna industry: fishers
A NATIONWIDE militant fishermen's group has painted a grim scenario for the local tuna industry in case the Senate ratifies the controversial Japan-Philippines Economic Partnership Agreement (JPEPA).
Fernando Hicap, chair of the 80,000-strong Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya), projected in a statement that the local tuna industry concentrated in this port city stands to lose P18 billion in profits yearly once the landmark deal becomes a treaty.
On the other hand, Japanese investors are expected to gain at least P43 billion annual profits in tuna trading, he said.
"The devastating impact of JPEPA to the local tuna industry includes the loss of 100,000 jobs provided by the local tuna fishing companies in South Cotabato, Sultan Kudarat, Sarangani, General Santos City and the Davao regions," Hicap said.
According to Pamalakaya, a single 3,000-gross ton Japanese factory ship is capable of harvesting 50,000 metric tons of tuna a year or 150 metric tons of tuna per day.
Based on industry standards, a single factory ship could earn as much as $32.5 million in gross profits from the sale of skipjack tuna.
Pamalakaya said the bulk of the profit will come from the remaining 35 percent of the 50,000 metric ton tuna catch, which is $210 million.
"A single medium size factory ship thus will earn $242.5 million a year, and since Japan at the very least, employs four factory ships in its regular tuna fishing expedition per country, we expect them to earn a total of $ 970 million or P43.5 B per year," the group said.
At present the local tuna industry yearly produces 400,000 metric tons of tuna, with 15 percent of the production going to domestic market and 85 percent for exports.
The European Union accounts for 40 percent of the country's fresh and canned tuna exports or roughly 64,000 metric tons per year. The rest of the exports are shipped to tuna markets of Japan and the United States.
In an earlier interview, Marfenio Tan, president of the Socsksargen Federation of Fishing Associations and Allied Industries Inc., aired support to the ratification of JPEPA because this would benefit not just the tuna industry but also other local maritime products.
But Tan, a local tycoon engaged in catching tuna stocks for processing into canned goods, did not touch on the issues raised by Hicap.
Tan expressed more concern on the lifting by the Japanese government of the ban on smoked tuna products and the effects on the environment in case the Jpepa becomes a treaty.
Apparently, little is known about JPEPA among the local tuna industry players, with another prominent local tuna player, Rogelio Lim, Sr., admitting he is unaware of its benefits or dangers.
Lim, vice president of the Alliance of Tuna Handliners, has been touted as the locality's "tuna king" in terms of catching large tuna stocks using the traditional hand line fishing method.
Pamalakaya said "the efforts of local tuna producers to upgrade their operations to world class standards will be put to waste once Japanese factory ships invade the country's tuna rich fishing waters courtesy of the one-sided agreement."
"The gains the Philippine government would derive from JPEPA in the form of taxes and profit sharing would be minimal compared to what Japan will get from this economic pact. The fisheries, particularly the tuna aspect of JPEPA is meant for the survival of Japan's tuna industry to the detriment of Filipino tuna producers," the fishers group said. (BSS)
