Licenses and tariffs cut profits from squid fishing in the Falklands by 25%

The voice of Galicia

lc llera



vigo / the voice

16/03/2021 05:00 h
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The squid sector in the Falkland Islands faces a 2021 full of uncertainties. The president of the Vigo Shipowners Cooperative and Association of Mixed Companies (Acemix), Javier Touza, points out that there are studies that show that the profits of the companies are going to be cut by 25%, although it states that the management of each company is different and the numbers are different.

Businesses struggled in 2020 due to the negative effects of the pandemic on international trade. And then came the Brexes, that he did not consider his future. Leaving the overseas territories out of the agreement between the EU and the United Kingdom means that the Falklands are considered a third country in the negotiations with the Commission. So this has also had an impact on Galicia, which is the main destination of the Falkland squid. From here we supply all of Europe, Touza points out and Vigo’s marketers confirm.

Companies from the Falklands must pay between 6% and 18% tariffs on all exports of fishery products to the EU, because the UK has not reached an agreement that benefits the archipelago in terms of Brexi. This will have a great impact on the economy of the islands, since the fishing sector represents 40% of the gross domestic product and 60% of the public collection.

The level of tariffs that companies have to face represents 25% of the average profit in recent years. Although squid prices have remained relatively strong, these tariffs will depress profits immediately and undermine the prosperity of this fishery in the long term. To this is added the decision of the Government of the Malvinas to increase the fishing license fee 50% that was carried out in 2019 for some species of fish and squid, with which spending on licenses increased from 23.6 million to 30 million pounds (from 27.4 to 35 million euros).

Spain imported some 80,000 tons of fish caught by the Falklands fleet in 2019 and about 65,000 tons were caught by vessels of the Falklands. Vigo Shipowners Cooperative. All this, without a doubt, will seriously affect 2021 if we do not find an alternative to tariffs soon, say the shipowners who recall that a third of the squid consumed in Europe is from the Malvinas.