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Calvo Salvador Wants 50% Of EU Global Sourcing Tuna Quota El Salvador, March 7, 13

 
 


Less than a year before the start of the Association Agreement (AA) between Central America countries and the European Union (EU), the Salvadoran tuna processor Calvo maintains its expectation regarding the allocation of a 50% share of tuna that is part of the agreement and involves a “global sourcing “ option. This would enable Grupo Calvo to source a part of its raw material caught by purse seiners that do not fly the European or El Salvador flag.
Calvo Group in El Salvador is the largest exporter of tuna products to Europe. It expects that through negotiations, the country’s government will obtain the majority of 4,000 metric tons of tuna that can be sold to the EU with facilities in the rules of origin that usually imposes the block.
The COO of Grupo Calvo, Miguel Peñalva, said his intention is to obtain a percentage of 50% or more.
“The main exporters to Europe, Spain in particular, are Guatemala and El Salvador; therefore, the then the main allocation should be among us, but Costa Rica also has its rights,” he said.
The Deputy Minister of Economy of El Salvador, Mario Roger Hernández, told the media that the distribution process is nearing completion and the remainder is to establish the volume of exports and production in each country.
The representative of Calvo emphasized the need for the agreement with the EU to be ratified as soon as possible by the Legislative Assembly of El Salvador, and thus begin to access the benefits of trade. “Each country has its times and is respected, but countries with agreement already ratified could start taking advantage of the opportunities,” he said.
The lack of agreement could force the Central American countries to implement the agreement on a “first come, first served” basis, meaning that in the event that consensus is not reached, the contribution of each country will depend on who makes the first offer to source the raw material from outside.
The quota of 4,000 metric tons of tuna based on the principle of “global sourcing”, which allows the region to export tuna products to the EU on a duty free basis even though it was not caught by South American ships.
It allows Grupo Calvo to source raw materials from Korea and Taiwan, but also Cape Verde or other fishing nations in the Atlantic Ocean. This flexibility is expected to increase the strength of the local tuna industry and address the shortage that occurs during the IATTC ban periods, when domestic fleets cannot fish in the EPO.