EU

Vietnam is expecting an increase in shrimp exports to EU

Fish & Seafood

Seafood demand from Europe could grow fast as a trade agreement is to come into force in the next months.

Posted on Feb 13 ,12:07

EU and Vietnam free trade agreement, also known as EVFTA, is expected to debut in the following months and shrimp producers from the south-east Asian country are hoping to increase their presence in Europe.

The free trade agreement will eliminate current tariffs on shrimps as follows: from 12.5% to 0% for chilled green lobster, HOSO black tiger shrimp, frozen DP shrimp, fresh/frozen PD shrimp, frozen whole shrimp; and from 20% to 0% for products like frozen PD black tiger shrimp, frozen HOSO whole black tiger shrimp, frozen shrimp headed and shell-on, frozen/fresh black tiger shrimp, frozen black tiger shrimp meat, frozen/fresh HLSO black tiger shrimp, frozen/fresh IQF black tiger shrimp, frozen whiteleg shrimp meat, announced Vietnam Association of Seafood Exporters and Producers (VASEP) .

Other trade barriers will fall after 7 years from the date of the agreement coming into force and will reduce the prices by 20%.
The EU mainly imports frozen raw shrimp and processed shrimp from Vietnam and accounts for 30.6% of total shrimp import value of the world. Vietnam has exported 22.2% of its shrimp production to Europe in the first 11 months of 2017. The Netherlands, the UK and Germany were the markets that register an increase in shrimp imports from Vietnam with sales growing by 93%, 87%, and 114%, respectively.

Other main competitors on the European market are Ecuador and India, with the last one being affected by a 50% customs tax. In the last few years, EU has imported shrimps worth $6-8 billion in every year. In the first 11 months of 2017, shrimp exports from Vietnam to EU reached a value of $780.2 million, increasing by 42.4% over the same period of 2016.

(Photo source: Pixabay)

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