January 19, 2010

Indonesia seeks lower seafood duty rates in Middle East

The Ministry of Maritime Affairs and Fisheries (MMAF) will seek to renegotiate hefty import duties charged by Middle Eastern countries on fishery products, as part of a plan to diversify the country's fishery industry.

Middle Eastern nations impose import duties of up to 35-40% on imports of fishery products, with Iran imposing a 40% duty on canned tuna.

MMAF director of foreign trade Saut Hutagalung said that Indonesia planned to conduct negotiations through the Developing Eight (D8) grouping.

Founded in 1997, the D8 group comprises Iran, Egypt, Indonesia, Bangladesh, Turkey, Nigeria, Pakistan and Malaysia, and aims to strengthen economic cooperation between its member nations, especially in the agriculture and fisheries sectors.

Along with Africa and Eastern Europe, the Middle East is one of the markets that the Ministry of Maritime Affairs and Fisheries is targeting for growth.

In 2008, Indonesia exported US$52.6 million of fish to the Middle East - just 2% of its US$2.6 billion of fishery exports.

"If the import duties could be reduced, we may be able to increase trading to Middle East," Saut said. The nation's main seafood exports frozen and canned tuna, octopus, frozen shrimp, shrimp crackers, frozen milkfish and crab.

In November, Fadel Muhammad, the minister of maritime affairs and fisheries, urged exporters to consider new markets in the Middle East because of the increasingly strict EU rules, which require exporters to supply detailed health certificates and list chemicals, especially heavy metals, contained in their products.

Around 70% of Indonesia's seafood exports are sent to Japan, the US and the EU, 12% to Southeast Asia and 11% to Northeast Asia.