The EU confirmed tariffs of 13.7% and 12% on Russian-origin fish products processed in China

The European Union formally confirmed on Monday that it will exclude Russian and Belarusian fishery products from the next version of its autonomous tariff quota (ATQ) scheme, which will come into force in January, including Russian-origin fish products processed in China.
The proposals were first made in September and the current ATQ scheme expires on 31 December. The council unanimously set quotas for 2024, 2025 and 2026 for certain fish products on 27 November.

The newly adopted regulation aims to ensure that the EU's fish processing industry can continue to source raw materials for further processing from non-EU countries at reduced or duty-free rates.

The EU is heavily dependent on imports to supply certain fishery products, as EU fisheries and aquaculture production currently meets only 39% of its needs. The ATQ was developed taking into account its potential impact on EU suppliers to ensure fair competition between imported fish products and EU products.

"With this regulation, we are guaranteeing the competitiveness of the fish processing industry and the supply of high-quality processed fishery products to European consumers at a reasonable price, taking into account the interests of the EU fisheries sector. We have done so just three months after the Commission's proposal, ensuring that all stakeholders have legal certainty about the regime that will apply over the next three years." said Luis Planas Puchades, Spain's Minister of Fisheries.

In recent decades, the EU has become increasingly reliant on imports to meet its demand for fishery products, either because they are not produced in the EU or because they are not produced in sufficient quantities. In order to ensure that the EU's fish production is not affected and to provide its processing industry with an adequate supply of fish products, the Council has been using ATQs.

Tariff quotas are only granted to those products that are imported into the EU for further processing.

The regulation covers a certain number of fish products for which tariffs will be suspended or reduced for a limited number of products between 2024 and 2026. The tariffs and quantities vary for each product.

Fish products originating from Russia, Belarus confirmed to be excluded. The EU proposes that fish products originating from Russia and Belarus can no longer benefit from zero tariffs on EU imports under the "end-use" regime.

"In view of the deterioration of relations between the EU and Russia, and in order to ensure consistency with the EU's actions and principles in the field of external action, it would be inappropriate to allow imports from the Russian Federation to benefit from the tariffs. -Free treatment for products falling within the scope of this Regulation."

Therefore, fish products originating from Russia or Belarus do not benefit from tariff quotas. Whilst fish from Russia and Belarus can still be imported into the EU, under the proposal standard tariffs will now apply, such as 13.7% for Alaskan cod fillets and 12% for head and gut (H&G) Cod.

Similarly, Russian fish entering the EU via China will retain their Russian origin and will therefore no longer be able to be imported under a preferential tariff, but under a standard rate. Of the many products for which ATQs are set, Alaskan cod is one of the most important.

The pollock quota is set at 340,000 tonnes. The proposal shows a limit of 110,000 tonnes for H&G and 50,000 tonnes for fillets.

According to the latest annual finfish report of the Association of European Fish Processors and Traders (AIPCE-CEP), Russia accounted for 25% of the region's cod imports in 2021, totalling around 200,000 tonnes. Germany is the main importer of Alaskan cod, followed by Poland, France and the Netherlands.

Russia imports about 153 000 tonnes of cod, accounting for 18 percent of EU cod imports. However, this figure is actually much larger considering that the majority of Russian whitefish goes to China for processing before entering the EU. According to AIPCE, more than 95% of Alaskan pollock imports from China originate in Russia.

"In view of the deterioration of relations between the EU and Russia, and in order to ensure consistency with the EU's position on external action, the Council has decided not to allow duty-free treatment or most-favoured-nation (MFN) treatment for fish products originating in Russia."

In addition, the Council also decided to exclude Belarusian fish products from the scope of the regulation due to the deterioration of relations between the EU and Belarus in recent years and because of Belarus' widespread support for Russia's war of aggression against Ukraine.

The regulation will enter into force from 1 January 2024 to 31 December 2026 on the 20th day after its publication in the Official Journal of the EU. Tariff quotas are administered by the European Commission and the Member States under the current tariff quota management system, which operates on a first-come, first-served basis.