Pakistan's fisheries trade with EU came to a halt in April 2007 as the union de-listed 11 seafood exporting companies of the country for failing to meet its specifications. Pakistan was exporting some $50 million seafood products annually to the EU when the ban was slapped. "Yes, the EU has allowed two companies from Pakistan to trade seafood products," Akhlaq Enterprises (Pvt) Ltd CEO Akhlaq Hussain Abedi told Business Recorder.
He said Pakistan will now be able to export PUD, pink and brown shrimps, squid and cuttlefish to the world's largest market of fisheries. However, he said, the exporting companies will have to see what price they will get for these products on the EU markets as Pakistan is already in trade with China and other Far East countries for such species. "Exporting companies will first send price quotation of these products to the EU buyers and then will decide whether trade with 27-nation bloc is viable," he said, adding the EU is beginning to receive Pakistan's seafood products from March 12.
"It is a big development in the context of Pakistan's economy and global trade," Karachi Fish Harbour Authority (KFHA) Managing Director Abdul Ghani Jokhio told Business Recorder. He said the confirmation of ban lifting by the EU is a the result of KFHA, Sindh government and Marine Fisheries Department's joint efforts to improve the fisheries sector safety standards in line with the global standards.
"Opening of seafood export to the EU is not a big achievement rather the EU's certification for Pakistan seafood safety is a great development," he said, adding that the KFHA also wants to make the fisheries sector provide safe seafood to the local market also. The ban cost Pakistan about $300 million since 2007. Pakistan's share of fisheries export to the EU markets stood at 26 percent of its total global seafood trade in 2007, fisheries officials said.
The EU's first and temporary ban on Pakistan seafood came in 2004-05 which cost the country $28.695 million because of unhygienic conditions. Pakistan registered over $300 million of seafood export particularly to China, Egypt, Far East and Middle East during last fiscal year, according to Pakistan Bureau of Statistics. Fish and shrimp appeal in the EU is on the rise as the union nations emerged more depending on the import of seafood. In 2009, the EU imported15.5 billion euros of fisheries products which is accounting for over 60 percent of its local requirement, the EU statistics suggest.
The EU has waived import tariffs for all fisheries products from the 50 Least Developed Countries. Meanwhile, the European Union decided to resume imports of Pakistani seafood to its market, taking another step forward in EU-Pakistan relations, says a press release issued here on Wednesday.
The decision puts an end to a six-year-long voluntary ban of exports of fishery products to the EU by the Maritime Fisheries Department of Pakistan. The voluntary ban imposed by the competent authority in Pakistan was the result of the EU Food and Veterinary Office identifying serious deficiencies in the official control system for seafood, including the traceability and hygiene at various stages of the industrial process. As of March 12, the resumption will apply to the two major companies, which have been approved by the Marine Fisheries Department. Other Pakistani companies may then seek to be certified to export seafood to the EU, which is Pakistan's largest trading partner.
"This is a real breakthrough that should also inspire other industries in Pakistan to increase their exports to EU markets, said the EU Ambassador to Pakistan, Lars-Gunnar Wigemark. It is the result of the EU's and Pakistan's joint efforts to facilitate increased trade by meeting EU product standards. Resuming Pakistani seafood exports to the EU will further promote our already strong bilateral trade relations and support job creation in Pakistan."
He noted that when the ban was introduced in 2007 Pakistani seafood exports to EU markets stood at 50 million euro (6.5 billion rupees) per year, adding that there is clearly a potential for an increase beyond this figure. Trade in fisheries products will also promote trade diversification - exports to Europe have so far remained focused on textiles.
Under the EU funded Trade Related Technical Assistance (TRTA) programme and in co-operation with UNIDO, the EU has supported the upgrading of the K1 and K2 auction halls at the Karachi Fish Harbour and the training of over 1500 fishermen and official inspectors in line with the EU standards. More than 300 fishing boats have been revamped and two laboratories for microbiology and chemical testing accredited. All these steps to address the shortcomings identified in 2007 led to the positive decision announced in Brussels. The EU has extended trade related assistance in other areas as well and has so far spent 15 million euro to promote trade with Pakistan during the past three years.