How Long Will Red Card Stick On Sri Lanka?

It’s been fairly quiet recently on the Sri Lankan front, with an EU red card on IUU now imposed on the country for over a year. With no end in sight yet, some EU importers are still feeling the pinch, stating that 2015 prices for fresh yellowfin tuna were consistently higher than the year before.

To get an update on the current Sri Lankan status, atuna.com contacted the European Commission DG MARE, which could only confirm that the country remains on the list of non-cooperating countries and consequently there is a ban on its fisheries product exports to the EU.

The spokesperson did note that “Sri Lanka is working on improving its fisheries management policies and systems in order to address effectively the issues that led to its black listing from the European Union.”

Dave Jones, Tuna Species Director at New England Seafood’s, one of the UK’s biggest importers of fresh tuna, only echoes these comments, and stated to Atuna that the work being done on the ground in Sri Lankan fisheries is great, saying that concerted efforts are being made to fully comply with EU standards.

He added that he is hearing mixed messages on how far through improvements the government is, but knows that NE Seafood is to rekindle relationships with Sri Lankan suppliers when the ban is finally lifted.

Jones explains that other countries where New England have an established supply, have filled the gap for fresh tuna since the ban. However supply from these countries has needed to be increased due to losing Sri Lankan volumes, and prices have been significantly inflated as a result.

Immediately after the Sri Lankan trade ban was imposed by the EU at the start of 2015, Jones noted that prices had climbed by as much as 30-60 percent compared with before. While he notes now that prices have somewhat steadied at times, he stresses that the cost is hugely fluctuant, and can still reach those higher levels even today.

“Prices have been going up and down like a rollercoaster,” he told Atuna, “and were consistently higher last year than in 2014.”

The red card has reportedly made Sri Lanka bleed, with a government spokesperson already stating in July that the country had suffered a USD 75 million revenue loss due to the IUU sanction, then only seven months in place.

Despite alternative sources being able to feed New England Seafood’s demand, Jones says that the company has every intention of going back to Sri Lankan suppliers when the ban is lifted. “We have strong relationships there, and are keen to return.”

The EU Commission notes that it is working with Sri Lankan authorities in achieving lasting improvement of the situation. “For a country to be removed from the list of non-cooperating countries, the Commission needs to make a proposal to the Council for the removal from the list and the Council would need to decide accordingly.”