GOVERNMENT TO ASK EU TO ACT TO PRESERVE SCOTTISH SALMON INDUSTRY

19 Jan 2004 11:15 AM

The Government will apply to the EU to put in place new measures to safeguard the Scottish salmon farming industry from surges of cheap imports of farmed Atlantic salmon from non-EU countries, Trade Minister Mike O'Brien announced today.

Farmed salmon from Norway, Chile and the Faroes continues to enter the British market undercutting Scottish producers and causing economic hardship to local communities heavily dependent on fish farming. There is particular concern that Norway has breached the 1997 agreement on fishing by allowing unfair overproduction of salmon. An increasing number of salmon fisheries have gone into receivership. EU "safeguard measures" are intended to restrict imports. They could operate in a number of ways, such as through a tariff quota whereby the imports above the quota limit attract punitive rates of duty.

Mike O'Brien said:

"The Scottish salmon industry is important to us. It provides the consumer with sustainable and reliable supplies. Applying for the safeguard measures is not a decision that the UK Government has taken lightly. We would normally strongly resist protectionism, but the salmon industry presents unique and serious problems which can only be dealt with by considering this exceptional action.

Norway has amended its rules to allow over production of its salmon which is undercutting the market for Scottish salmon. This was an unfair practice and resulted in over production. The Scottish salmon industry needs temporary help to adjust to these market changes."

"I spoke to EU Trade Commissioner, Pascal Lamy last week to impress on him how vital it is that we get approval for the safeguard measures. I will also be discussing with the Irish Government the option of making a joint application to the EU. We need the help of the Irish Government in order to initiate the inquiry procedure which can in due course allow safeguards to be applied. We cannot get the EU to impose this measure without the help of the Irish".

The UK is hoping to make an application jointly with Ireland, where salmon farmers are facing the same threat from imports. Irish support will help to demonstrate to the commission that the European industry wants action.

Notes to Editors:

1. The measures being sought apply exclusively to farmed Atlantic salmon and not to wild salmon or other fish imports from third countries.

2. Safeguard measures, if applied, will affect imports of farmed Atlantic salmon from all non-EC countries. Apart from Norway which is the major import source, other important import sources are Chile and the Faeroe Islands.

3. Safeguard measures can only be taken when there is or there is a risk of serious injury to a Community industry. In this instance, the serious injury is attested by the growing number of independent Scottish salmon producers going into receivership.

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