Lobster tariff concession coup

A FIVE-YEAR campaign by the Western Australian rock lobster industry has achieved a major breakthrough with the recent decision by the European Union to significantly reduce tariffs.

The EU has agreed to cut the tariff imposed on imported Western Australian frozen rock lobster from 12.5 per cent to 6 per cent.

The new tariff rate will apply up to 1,500 tonnes of frozen rock lobster, worth about $37 million a year, imported to Europe by December 31.

Ongoing talks with the EU are hoping to secure tariff concessions for WA’s lobster industry for the next three years.

Premier Geoff Gallop said winning the tariff concession from the EU was a major achievement and one that followed a sustained campaign by WA rock lobster industry representatives, the State Government and, for the past two years, the Office of the Agent General in London.

“The new rate will enable the WA rock lobster industry to gain access to European markets on a competitive basis, for the first time,” he said.

“It also comes at a time when the traditional markets for our lobster in Asia have been under pressure.”

However, Dr Gallop was quick to add that the tariff reduction was not an end in itself, but rather an important start to trade talks concerning WA rock lobsters.

“Winning these tariff concessions is an important beginning – but it is not an end in itself,” Dr Gallop said.

“The next step will be to persuade the European Union to grant similar tariff concessions to WA’s lobster industry for the next three years.

“It will then be up to the industry to establish and develop markets in Europe to show they can meet the European Union’s quota of 1,500 tonnes per year.”

Western Rock Lobster Development Association consultant Ron Edwards said the WA rock lobster industry was strategic in its approach.

“In a sense we had to craft a tariff policy,” he said.“We raised the issue of seafood in the Department of Foreign Affairs and Trade processes at a time when coal, olives and wine were considered important in the negotiation process.

“However, we didn’t want to give it too high a profile. We didn’t want to get into multilateral negotiations that can be tit for tat.

“This strategy was to focus on rock lobster.

“When negotiations began, tariffs were 8 per cent for Canada, which was gained through [Canada] sacrificing access to fisheries, and 12.5 per cent for Australia.”

Mr Edwards said Australia refused the offer to sacrifice access to fisheries in exchange for tariff reductions, despite the competitive advantage that a reduction in tariffs would bring and the challenges the industry faced.

Lobster Australia managing director and industry spokesman Peter Fraser said the tariff reduction was a major coup for the industry.

With a reduction of this magnitude, the WA rock lobster industry was likely to experience savings in duty of around $6 million per year, Mr Fraser said, providing the industry with unprecedented competitiveness.

“Our lobster is the best in the world and once we were not competitive due to the high tariffs,” he said. “We’re really very happy.

“It’s been a real goal for us because Europe is such a huge market.”

Mr Fraser said the industry would now concentrate on filling the quota of lobsters and marketing itself in European markets.

“Lobster Australia has been working the European market for many years now,” he said.

Mr Fraser said the industry would be targeting high-end supermarkets in Europe and was hoping to supply top-end restaurants.

It’s expected the tariff concessions for the three-year period, commencing January 1 next year, will be announced in December.

Although the campaign was driven and funded predominantly by the WA rock lobster industry, the State Government contributed about $50,000 to the campaign over the past two years.

Australian ambassadors also supported the campaign in European countries by hosting events to showcase WA rock lobsters.

“Attempting to win tariff concessions from the European Union is not for the faint hearted,” Dr Gallop said.

“This campaign has involved numerous visits to Europe by industry representatives from WA over the past five years and the staging of many promotional functions to demonstrate the quality of Western Rock Lobster to key decision-makers.”