Tuna export contributes 5 percent of Maldives gross domestic product (GDP) as the prices of tuna has gone up by over 40 percent in 2007. But the catch of tuna has plunged by 23 percent last year and that shook Maldives fishing industry. The Fisheries Minister has described this situation as seasonal fluctuations. And this could result in loosing the tax break that Maldive is currently enjoying from the European Union, the biggest buyer of Maldivian fish. It means a new 24 percent import duty being levied by the EU.
The prices of tuna have gone higher to $1,368.45 in December 2007 from $955.69 from January 2007 for CIF sales. As per Fisheries Minister, Hussein Hilmy the exports of tuna fish are improving in key fish markets. He said that exports to the EU are the main concern at present as there is a sudden fall in the catch of tuna. He informed that in 2007 the catch of tuna has lead to a dramatic fall in national GDP growth top 6.6 percent from the expected 7.3 percent. Hilmy explained that such fall in catch occur every seven to nine years due to changes in the environment.
Maldives is now in a status of losing the 24 percent exemption on import duty from EU on fish imports as it is a Least Developed Country (LDC). Maldives High Commission in the UK ahs mentioned that the country will no longer enjoy the exemptions on import duty form EU.
