""

Required Report - public distribution

**Date:** 10/22/2003

**GAIN Report Number:** PO3020

PO3020

**Portugal**

**Fishery Products**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Lloyd Fleck

U.S. Embassy

**Prepared by:**

Leonor Ramos

**Report Highlights:**

New EU fisheries policies will introduce further constraints on
Portugal's fishing fleet, but total catch is expected to continue to
expand over the next few years. Total seafood imports for 2003 are
estimated at over 442,000 tons. With the dollar weaker against the euro,
U.S. exporters could ship more frozen processing cod into this market
during the remainder of 2003. 1 USD = 0.87 Euros.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Madrid \[SP1\]

\[PO\]

#  

[Executive Summary 3](#executive-summary)

[Commodity Name: Groundfish, Whole/Eviscerated
4](#commodity-name-groundfish-wholeeviscerated)

[Production, Supply & Distribution Table
4](#production-supply-distribution-table)

[Production 4](#production)

[General 4](#general)

[Quality 5](#quality)

[Consumption 5](#consumption)

[Trade 5](#trade)

[Import Trade Matrix \-- CYs 2001 and 2002
6](#import-trade-matrix----cys-2001-and-2002)

[Export Trade Matrix \-- CYs 2001 and 2002
6](#export-trade-matrix----cys-2001-and-2002)

[Import Trade Matrix \-- 1^ST^ Semester 2002 and 2003
7](#import-trade-matrix----1st-semester-2002-and-2003)

[Export Trade Matrix -- 1^ST^ Semester 2002 and 2003
7](#export-trade-matrix-1st-semester-2002-and-2003)

[Policy 8](#policy)

[General 8](#general-1)

[Tariffs 8](#tariffs)

[Marketing 8](#marketing)

[Commodity name: Cod, Salted 10](#commodity-name-cod-salted)

[Production, Supply & Distribution Table
10](#production-supply-distribution-table-1)

[Production 10](#production-1)

[Consumption 10](#consumption-1)

[Trade 11](#trade-1)

[General 11](#general-2)

[Import Trade Matrix \-- CYs 2001 and 2002
12](#import-trade-matrix----cys-2001-and-2002-1)

[Export Trade Matrix \-- CYs 2001 and 2002
12](#export-trade-matrix----cys-2001-and-2002-1)

[Import Trade Matrix \-- 1^ST^ Semester 2002 and 2003
13](#import-trade-matrix----1st-semester-2002-and-2003-1)

[Export Trade Matrix \-- 1^ST^ Semester 2002 and 2003
13](#export-trade-matrix----1st-semester-2002-and-2003)

[Policy 14](#policy-1)

[Tariffs 14](#tariffs-1)

[Marketing 15](#marketing-1)

[Commodity Name: Total Edible Fishery Products
16](#commodity-name-total-edible-fishery-products)

[Production, Supply & Distribution Table
16](#production-supply-distribution-table-2)

[Production 16](#production-2)

[Consumption 17](#consumption-2)

[Trade 17](#trade-2)

[General 17](#general-3)

[Import Trade Matrix \-- CYs 2001 and 2002
18](#import-trade-matrix----cys-2001-and-2002-2)

[Export Trade Matrix \-- CYs 2001 and 2002
18](#export-trade-matrix----cys-2001-and-2002-2)

[Import Trade Matrix \-- First Semester 2002 and 2003
19](#import-trade-matrix----first-semester-2002-and-2003)

[Export Trade Matrix \-- First Semester 2002 and 2003
19](#export-trade-matrix----first-semester-2002-and-2003)

[Policy 20](#policy-2)

[Production Policy 20](#production-policy)

[Tariff Regime 23](#tariff-regime)

[Marketing 23](#marketing-2)

[Tariff Table 25](#tariff-table)

#   {#section-1 .unnumbered}

# Executive Summary 

Due to resource management efforts, Portugal's total fish landings are
expected to expand during 2003, to an estimated 210,000 Mt; about 32 pct
will consist in sardines and eight pct, Atlantic horse mackerel. About a
fifth of total fish landings will be caught in international waters. The
total 2004 fish harvest is forecast at 215,000 Mt, moderately above 2003
levels under the effects of improved fish stock management practices.
Local fishing levels are expected to remain mostly stable over the next
three-to-five years. Reduced investment supports from the EU will crimp
the fishing fleet. In addition, the opening of Portuguese waters in the
12-to-200 mile zone to other EU fishermen in 2004 will prevent total
fish landings from increasing, particularly for certain migratory
species.

Total Portuguese seafood imports are expected to come down moderately
during 2003 to about 442,000 Mt, fresh weight basis, due to a reduction
in purchases of cured and canned fish. Total fresh/frozen fish imports
will tend to be up though, due to an expansion in fish processing
activities \-- largely encouraged by the application of the EU import
tariff suspension regime to key processing fish types. Benefiting from a
three pct import tariff, imports of frozen cod for processing had a 33
pct expansion during the first half of 2003 relative to the same period
of 2002, while other processing fish types were also up. At the same
time, salted wet cod imports were down by 20 pct, displaced both by the
larger frozen cod processing activity, and by higher imports of salted
dry cod brought in from other EU countries. In addition to fish for
processing, most categories that have been expanding in 2003 include
frozen and fresh hake (+ 11 and 7 pct respectively), and fresh
squid/loligo (+ 14 pct). Total fish imports are likely to suffer another
moderate reduction in 2004. Three-to-five year trends will largely
depend upon the effects of the new EU fishing policies upon Portuguese
fish production. However, processing fish types will tend to continue to
expand, in light of local consumption patterns and the difficulties of
Portuguese fishermen accessing resources of certain traditional species
like cod, now subject to particularly tight production control rules. At
the same time, certain popular species will continue to be imported to
satisfy a strong local demand, including squid/loligo, monkfish and
salmon, among others.

Total seafood imports from the U.S. are expected to be down in 2003,
with the local statistics office (INE) reporting a 20 pct reduction in
total seafood imports from the U.S. during the first semester of the
current year. This reduction was due almost entirely to the lower salted
wet cod segment, which was affected by changes in local industry use
trends, and by unfavorable price ratios of salted wet cod with frozen
processing cod. The U.S. is likely to recover market share in 2004 if
the dollar rate does not appreciate significantly against the euro,
given a strong local demand for fish types of which the U.S. is an
accredited supplier, including frozen cod, frozen Alaska salmon, squid
and monkfish.

1 USD = 0.87 Euro

#  Commodity Name: Groundfish, Whole/Eviscerated

## Production, Supply & Distribution Table 

  -------------------- ------------------- ---------- ---------- ---------- ---------- ----------
  PSD Table                                                                            

  Country              Portugal                                                        

  Commodity            Groundfish,                                          (MT)       
                       Whole/Eviscerated                                               

                       2002                Revised    2003       Estimate   2004       Forecast

                       USDA Official       Post       USDA       Post       USDA       Post
                       \[Old\]             Estimate   Official   Estimate   Official   Estimate
                                           \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  Market Year Begin                        01/2002               01/2003               01/2004

  Beginning Stocks     5000                5000       5000       5000       0          5000

  Total Production     3500                14196      0          14000      0          12000

  Intra‑EC Imports     40000               34520      0          39000      0          40000

  Other Imports        52000               36939      0          45000      0          46000

  TOTAL Imports        92000               71459      0          84000      0          86000

  TOTAL SUPPLY         100500              90655      5000       103000     0          103000

  Intra‑EC Exports     11000               6116       0          4300       0          4200

  Other Exports        750                 516        0          550        0          560

  TOTAL Exports        11750               6632       0          4850       0          4760

  Domestic Consumption 83750               79023      0          93150      0          93240

  Other Use/Loss       0                   0          0          0          0          0

  TOTAL Utilization    83750               79023      0          93150      0          93240

  Ending Stocks        5000                5000       0          5000       0          5000

  TOTAL DISTRIBUTION   100500              90655      0          103000     0          103000
  -------------------- ------------------- ---------- ---------- ---------- ---------- ----------

## Production 

### General 

Portuguese groundfish production for 2002 in the PSD Table has been
raised to reflect new information published by the Portuguese official
statistics office (INE). Leading species in the total were: Greenland
halibut (4,319 Mt), cod (3,630 Mt), hake (2,557 Mt), and white hake
(3,647 Mt). Groundfish here includes fresh/frozen cod, hake, whiting,
pollock, haddock and halibut.

Total 2003 groundfish production is expected to come down moderately
from previous year levels primarily due to hake stocks-related issues.
The national fisheries directorate (DGPA) reports a 28 pct reduction in
first quarter 2003 hake catch relative to first quarter 2002 levels, and
is currently reviewing a special program to enable hake stocks to
recover. (For more on fish management, please see the \"Policy\"
section.) The cod catch is expected to remain basically stable at the
level of EU-set Portuguese Total Allowed Catch (TAC). Note that under
current fishing conditions, cod is basically caught under the Portuguese
TAC in Norwegian waters, as NAFO cod TACs are presently frozen.

Due to current hake stock conditions, the Portuguese groundfish catch is
forecasted to suffer another reduction in 2004. While the new EU
Fisheries Policy is not expected to have significant effects on
Portuguese groundfish production in the near term, it may have an effect
in the long-term. For more details on the Reform, please see the
\"Policy\" section.

### Quality 

Quality of fresh groundfish is generally considered high, especially for
fresh hake for retail sale. In the case of frozen groundfish, quality is
considered variable due primarily to different transportation and
storage conditions aboard fishing vessels, although they are generally
improving due to continuous investments in fleet renovation. In health
and sanitary terms, Portuguese seafood is subject to EU standards and
regulations.

The Portuguese market is particularly sensitive to cod fish quality, due
to specific standards related to the tradition of salted dry cod
consumed in the country. Atlantic cod (*Gadus morhua*) is considered
superior in flavor and texture relative to Pacific cod (*Gadus
macrocephalus*). This relates to intrinsic differences in properties of
these two sub-species. Further, Pacific cod is reported to be frequently
damaged by parasites, which affects the fish both in edible property
terms as well as in what concerns visual attractiveness and appeal of
the end-product (primarily salted dry cod) at retail. The larger,
thicker codfish are rated as higher-quality and receive price premiums.
Pollock is viewed as a cheap, lower-quality cod substitute, primarily
used for processing. Fresh silver hake imported by air from the United
States is considered to be of high quality.

### Consumption 

Consumption of groundfish is expected to grow in 2003 due to an
expansion in frozen fish use for processing. This results primarily from
comparative cost advantages of using frozen cod for processing into
salted dry cod instead of salted wet cod. Further, use of other
groundfish for processing may undergo moderate expansion as a
consequence of diversification trends of the local industry, including
haddock, which is used for mincing. Groundfish use for home consumption
is expected to remain mostly stagnant. The price competitiveness of meat
products and ready-to-cook meals, in addition to other fish types, tends
to prevent domestic groundfish use from growing. Portuguese groundfish
consumption is forecast to expand moderately in 2004 as well, provided
that the price relationship between imported frozen cod and salted wet
cod does not deteriorate.

## Trade 

Portuguese 2003 groundfish imports are estimated to expand significantly
relative to CY-2002 levels due to an increase in frozen cod imported for
processing. According to INE, frozen product accounted for virtually all
groundfish imports during the first semester of 2003. This category had
a twenty pct increase during that period compared to the first half
2002. Frozen cod for processing (which accounts for over 60 pct of total
frozen groundfish), had a 33 pct increase over first semester 2002
imports. During the same period, frozen hake (36 pct of total frozen
groundfish) increased eleven pct over first semester 2002 levels. Fresh
groundfish imports are small and consist mostly of hake; imports of this
species showed a 7 pct increase during the first half of 2003 compared
to 2002 levels. As a consequence of current production trends, total
groundfish imports will tend to expand in 2004. Frozen cod for
processing will tend to remain the leading expanding segment. Both fresh
and frozen hake imports will also tend to grow due to the current
problems with hake stocks in national waters.

Portuguese groundfish imports from the U.S. have been off in 2003 due to
a slowdown in local demand for pollock. According to INE, frozen cod
accounted for 91 pct of total first semester 2003 groundfish imports
from the U.S. (70 pct during first semester of 2002), the remaining
being accounted for by pollock. However, favored by the lower dollar
rate against the euro, frozen cod imports from the U.S. expanded by 15
pct during the first semester of 2003 over first semester 2002 levels.
U.S. frozen cod imports from the U.S. are likely to continue to grow in
2004, provided that the dollar does not appreciate significantly against
the euro. It is important to note that the weak dollar also favors other
cod origins using the dollar as reference currency, especially Russia.
Russian cod is considered a direct U.S. competitor, as it is offered in
smaller sizes (one to one-and-a-half kilos) and benefits from shorter
shipping distances. Imports of pollock will tend to remain weak, being
displaced by additional quantities of processing cod.

Trade Matrices for total Groundfish during Calendar Years 2001 and 2002,
as well as for Jan-June 2002 and 2003 are given below.

### Import Trade Matrix \-- CYs 2001 and 2002 

  -------------------- ------------------- ------------------- ---------------
  Import Trade Matrix                                          

  Country              Portugal                                

  Commodity            Groundfish,                             
                       Whole/Eviscerated                       

  Time period          CY                  Units:              Metric Tons

  Imports for:         2001                                    2002

  U.S.                 9134                U.S.                4994

  Others                                   Others              

  Spain                24893               Spain               25862

  U.K.                 2353                U.K.                2673

  Denmark              1522                Denmark             4432

  Other EU             1137                Other EU            1553

  Russia               22983               Russia              22647

  South Africa         5807                S. Africa           4903

  Norway               2057                Norway              1911

  Togo                 723                 Togo                638

  New Zealand          531                 Uruguay             332

  Iceland              379                 Argentina           228

  Total for Others     62385                                   65179

  Others not Listed    1444                                    1286

  Grand Total          72963                                   71459
  -------------------- ------------------- ------------------- ---------------

### Export Trade Matrix \-- CYs 2001 and 2002 

### 

  -------------------- ------------------- ------------------- ---------------
  Export Trade Matrix                                          

  Country              Portugal                                

  Commodity            Groundfish,                             
                       Whole/Eviscerated                       

  Time period          CY                  Units:              Metric Tons

  Exports for:         2001                                    2002

  U.S.                 8                   U.S.                9

  Others                                   Others              

  Spain                5275                Spain               4697

  France               623                 France              712

  U.K.                 319                 U.K.                350

  Denmark              199                 Denmark             168

  Other EU             203                 Other EU            189

  Switzerland          46                  Japan               197

  Canada               20                  Taiwan              142

                                                               

                                                               

                                                               

  Total for Others     6685                                    6455

  Others not Listed    52                                      168

  Grand Total          6745                                    6632
  -------------------- ------------------- ------------------- ---------------

### Import Trade Matrix \-- 1^ST^ Semester 2002 and 2003 

  --------------------- ------------------- ------------------- ---------------
  Import Trade Matrix                                           

  Country               Portugal                                

  Commodity             Groundfish,                             
                        Whole/Eviscerated                       

  Time period           1st Semester        Units:              Metric Tons

  Imports for:          2002                                    2003

  U.S.                  2780                U.S.                2512

  Others                                    Others              

  Spain                 12708               Spain               16579

  U.K.                  1430                U.K.                1893

  Denmark               2739                Denmark             1638

  Other EU              872                 Other EU            385

  Russia                10526               Russia              14248

  South Africa          2584                S. Africa           2715

  Norway                1607                Norway              2140

  Togo                  240                 Togo                185

  New Zealand           197                 Argentina           157

  Iceland               19                  Chile               144

  Total for Others      32922                                   40084

  Others not Listed     260                                     216

  Grand Total           35962                                   42812
  --------------------- ------------------- ------------------- ---------------

### Export Trade Matrix -- 1^ST^ Semester 2002 and 2003

###  

  -------------------- ------------------- ------------------- ---------------
  Export Trade Matrix                                          

  Country              Portugal                                

  Commodity            Groundfish,                             
                       Whole/Eviscerated                       

  Time period          1st Semester        Units:              Metric Tons

  Exports for:         2002                                    2003

  U.S.                 4                   U.S.                5

  Others                                   Others              

  Spain                2542                Spain               1846

  France               451                 France              112

  U.K.                 259                 U.K.                117

  Denmark              168                 Denmark             16

  Other EU             87                  Other EU            200

  Switzerland          28                  China               190

  Canada               5                   Taiwan              51

  Brazil               19                  Brazil              23

  China                0                   Japan               23

                                                               

  Total for Others     3559                                    2578

  Others not Listed    261                                     46

  Grand Total          3824                                    2629
  -------------------- ------------------- ------------------- ---------------

## Policy 

### General 

Portuguese resource management in national and international waters is
coordinated by the EU, which also negotiates fishing quotas on
Portugal's behalf. All international fishing agreements, including
Portuguese bilateral accords, are negotiated by the EU.

As a consequence of the EU Fisheries policy reform, species with
conservation problems are to be managed through special EU-set recovery
plans, which apply in addition to the TAC regime. The EU has already
developed plans for Northern Atlantic hake and cod and is preparing
another for hake populations in Portuguese waters. The revision of the
EU fisheries policy \-- contained in EU Regulation 2369/02 -- will
restrict Portuguese catches in the medium-term, due to accrued fishing
limitations related to fish stocks management, as well as new
constraints to EU-backed investment subsidization programs. For a
discussion of the impact of the Fisheries Reform in Portugal, please see
the \"Policy\" section under \"Total Edible Fishery Products\" at the
end of Report. Under the same section, there is a listing of the more
significant groundfish TACs set for Portugal for 2003.

### Tariffs 

Portuguese groundfish imports are subject to the EU import tariff
regime. This includes the EU duties suspensions, of particular interest
to frozen processing cod, which may currently be brought in at a three
pct import tariff. A synthesis of specific Import Quotas affecting cod
products, are listed in the "Policy\" section under \"Salted Cod, n.d.."
For import tariffs affecting key groundfish types, see the tariff table
at the end of report. Note that silver hake also benefits from an EU
import quota of 2,000 Mt (for all of the EU), under which the fish can
be imported at an eight pct rate.

## Marketing 

Current groundfish demand trends, and the EU tariff suspension regime
for a series of processing fish types create an attractive potential for
increased U.S. cod sales here. In addition to cod, pollock and halibut
will tend to remain interesting niche markets, while silver hake can
profit from the current slowdown in local hake production. Pacific
pollock will be in demand as a cheap replacement for salted dry cod for
mincing and for the preparation of pre-cooked products. Frozen halibut
is primarily used for mincing.

U.S. exporters wishing to export groundfish into Portugal should contact
the following:

Office of Agricultural Affairs

Lisbon - Portugal

Telf.: + 351 - 21 770 2354/56

Fax: + 351 - 21 726 9721

Email:

Associacao dos Industriais do Bacalhau (AIB)

Telf.: + 351 - 234 368 002

Fax: + 351 - 234 368 003

Email:

Note: For frozen processing cod

Associacao dos Comerciantes de Pescado (ACOP)

Telf.: + 351 - 21 974 096/217 978 884

Fax: + 351 - 217 951 695

Note: For all other groundfishes, fresh or frozen

For additional information regarding the Portuguese cod sector, see FAS
GAIN Report #PO3001.

# Commodity name: Cod, Salted

## Production, Supply & Distribution Table 

  -------------------- ---------- ---------- ---------- ---------- ---------- ----------
  PSD Table                                                                   

  Country              Portugal                                               

  Commodity            Cod,                                        (MT)       
                       Salted                                                 

                       2002       Revised    2003       Estimate   2004       Forecast

                       USDA       Post       USDA       Post       USDA       Post
                       Official   Estimate   Official   Estimate   Official   Estimate
                       \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  Market Year Begin               01/2002               01/2003               01/2004

  Beginning Stocks     150        150        150        150        0          150

  Total Production     40000      33125      0          35000      0          38000

  Intra‑EC Imports     6000       17763      0          36000      0          37000

  Other Imports        114000     91702      0          55000      0          50000

  TOTAL Imports        120000     109465     0          91000      0          87000

  TOTAL SUPPLY         160150     142740     150        126150     0          125150

  Intra‑EC Exports     4900       5466       0          3826       0          3800

  Other Exports        400        178        0          10         0          10

  TOTAL Exports        5300       5644       0          3836       0          3810

  Domestic Consumption 154700     136946     0          122164     0          121190

  Other Use/Loss       0          0          0          0          0          0

  TOTAL Utilization    154700     136946     0          122164     0          121190

  Ending Stocks        150        150        0          150        0          150

  TOTAL DISTRIBUTION   160150     142740     0          126150     0          125150
  -------------------- ---------- ---------- ---------- ---------- ---------- ----------

## Production 

Portuguese 2003 salted wet cod production is expected to increase
relative to 2002 levels as a consequence of an intensification of frozen
cod use for processing, as already indicated under "Groundfish." Due to
the scarcity of cod resources, salted wet cod production from national
catch is minimal, consisting in a roughly unchanged 50 pct share of cod
harvested by Portuguese fishermen which is not immediately exported.
This forces the local industry of cod salting and drying to rely almost
entirely upon the international market for raw material sourcing.
National wet salted cod production is forecasted to go up again in 2004,
given the projected increase in domestic demand levels, and the fact
that under the current EU tariff regime, wet salted cod processing
generally yields higher margins than just the drying of the imported
salted cod, n.d..

## Consumption 

Portuguese total consumption of salted wet cod is estimated to suffer
some reduction during CY-2003 due to trend for salted wet cod to be
displaced with directly imported salted dry cod. Total wet salted cod
use is forecasted to decline moderately during 2004, if direct imports
of salted dry cod should continue to rise.

Salted wet cod is utilized to dry and produce the traditional salted dry
cod which is locally used in an infinite number of culinary
applications. Though a roughly stable product, salted dry cod use
suffered a considerable reduction in past years under the competition of
meat products \-- including poultry meat and pork \-- as well as a
series of new food products. Though mostly stable at present,
end-consumer use of salted dry cod is considered liable to slide down by
around one pct during the current year. In order to modernize and
increase competitiveness, the local industry has been increasing the
production of pre-wetted cod \-- derived from salted dry cod, which is
wetted and frozen \-- which seeks to address the easy-to-use
requirements of current days domestic cooking. Industry sources report
that pre-wetted frozen cod presently accounts for roughly thirty percent
of total cod consumed at retail.

## Trade 

## 

### General 

Salted wet cod imports are estimated to come down somewhat in 2003
relative to 2002 levels, due to the attractiveness of frozen cod
processing (see \"Groundfish, Whole, Eviscerated\"), while larger salted
dry cod imports from other EU countries affected the cod processing
industry. Another moderate decline in local salted wet is expected in
2004, if the industry continues to process larger quantities of frozen
cod as presently expected.

Direct salted wet cod imports from the United States are expected to be
down during 2003, with first semester 2003 imports revealing a decline
proportionate to that of the total salted wet cod import total. Another
proportionate reduction in salted wet cod imports from the U.S. is
anticipated for 2004.

INE reports that national CY-2002 salted dry cod imports totaled 81,000
Mt (fresh weight basis), 18 pct over CY-2001 levels, representing 114
Million Euros in trade value. During the first semester of 2003,
Portugal's salted dry cod volume imports rose another 14 pct from first
semester 2002 levels. First semester dry cod imports were led by Denmark
(36 pct of total), Norway (28 pct) Russia (11 pct) and Spain (10 pct).

Trade Matrixes for Calendar Years 2001 and 2002, as well as for first
semester 2002 and 2003 with data from the National Statistics office
(INE) are given below.

### Import Trade Matrix \-- CYs 2001 and 2002 

  -------------------- --------------- ------------------- ---------------
  Import Trade Matrix                                      

  Country              Portugal                            

  Commodity            Cod, Salted                         

  Time period          CY              Units:              Metric Tons

  Imports for:         2001                                2002

  U.S.                 10413           U.S.                8418

  Others                               Others              

  Denmark              7020            Denmark             7538

  Netherlands          2750            Netherlands         5420

  Other EU             3726            Spain               2866

  Iceland              59193           Other EU            1939

  Norway               35626           Iceland             45633

  Russia               6254            Norway              29754

  Canada               6125            Canada              4019

                                       Russia              3679

                                                           

                                                           

  Total for Others     120694                              100848

  Others not Listed    405                                 199

  Grand Total          131512                              109465
  -------------------- --------------- ------------------- ---------------

### Export Trade Matrix \-- CYs 2001 and 2002 

  -------------------- --------------- ------------------- ---------------
  Export Trade Matrix                                      

  Country              Portugal                            

  Commodity            Cod, Salted                         

  Time period          CY              Units:              Metric Tons

  Exports for:         2001                                2002

  U.S.                 0               U.S.                0

  Others                               Others              

  Spain                5499            Spain               3550

  Greece               1281            Other EU            1916

  Other EU             1044                                

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

  Total for Others     7824                                5466

  Others not Listed    28                                  178

  Grand Total          7852                                5644
  -------------------- --------------- ------------------- ---------------

### Import Trade Matrix \-- 1^ST^ Semester 2002 and 2003 

  --------------------- --------------- ------------------ --------------
  Import Trade Matrix                                      

  Country               Portugal                           

  Commodity             Cod, Salted                        

  Time period           1st Semester    Units:             Metric Tons

  Imports for:          2002                               2003

  U.S.                  4116            U.S.               3289

  Others                                Others             

  Denmark               4183            Spain              7310

  Netherlands           1872            Netherlands        4584

  Other EU              1894            Denmark            3976

  Iceland               27095           Other EU           787

  Norway                14590           Iceland            14138

  Canada                2887            Norway             8413

  Russia                2392            Russia             2955

                                        Canada             1617

                                                           

                                                           

  Total for Others      54913                              43780

  Others not Listed     51                                 116

  Grand Total           59080                              47185
  --------------------- --------------- ------------------ --------------

### Export Trade Matrix \-- 1^ST^ Semester 2002 and 2003 

  -------------------- --------------- ------------------- ---------------
  Export Trade Matrix                                      

  Country              Portugal                            

  Commodity            Cod, Salted                         

  Time period          1st Semester    Units:              Metric Tons

  Exports for:         2002                                2003

  U.S.                 0               U.S.                0

  Others                               Others              

  Spain                2579            Spain               1124

  Other EU             790             France              637

                                       Other EU            595

                                                           

                                                           

                                                           

  Total for Others     3369                                2356

  Others not Listed    155                                 5

  Grand Total          3524                                2361
  -------------------- --------------- ------------------- ---------------

## Policy 

### Tariffs 

Salted cod, n.d. imports are subject to the EU-set import tariff regime.
Market access differentiates origins. Member States of the European
Economic Space (EES) tend to have favorable access conditions to all cod
types, which accumulate with tariff benefits granted by the EU to all
origins. An overview of key Tariff-Rate Quotas currently in effect is
given below.

**EU Cod Tariff-Suspension Regime**

+---------------------------------+---------------------------+-------+
| Tariff Code                     | Description               | Quota |
|                                 |                           | Duty  |
+---------------------------------+---------------------------+-------+
|                                 |                           |       |
+---------------------------------+---------------------------+-------+
| 0302.50.10, 0302.50.90,         | Cod and *Boreogadus       | 3 pct |
| 0302.69.35, 0303.60.11,         | saida* for processing     | (1)   |
| 0303.60.19, 0303.60.90          |                           |       |
|                                 |                           |       |
| 0303.79.41                      |                           |       |
+---------------------------------+---------------------------+-------+
|                                 |                           |       |
+---------------------------------+---------------------------+-------+

Note: Importation of products indicated above is without limit, but
subject to EU-set reference prices.

\(1\) Annex VI of EU Reg. 104/2000.

**EU Autonomous Import Quotas**

+-----------+--------------------------+-------+-------+-------+------+
| Tariff    | Description              | Quota |       | Quota |      |
| Code      |                          | (     |       | Duty  |      |
|           |                          | M.T.) |       | (%)   |      |
+-----------+--------------------------+-------+-------+-------+------+
|           |                          | 2002  | 2003  | 2002  | 2003 |
+-----------+--------------------------+-------+-------+-------+------+
| 0         | Cod and *Boreogadus      | 1     | 1     | 0 pct | 0    |
| 305.62.00 | saida*, salted or in     | 0,000 | 0,000 |       | pct  |
|           | brine, but not dried or  |       |       |       |      |
| 0         | smoked, for processing.  |       |       |       |      |
| 305.69.10 |                          |       |       |       |      |
+-----------+--------------------------+-------+-------+-------+------+

Note: At the end of 2002, 5,841 Mt from quota remained un-alloted. Under
the current year's quota, the General Customs Office reports that 7,930
Mt have remained un-alloted to the trade.

**Cod and *Boreogadus saida* WTO Quotas**

+---------------+-------------------+---------+----------+-----------+
|               |                   | **Quota | **Quota  | **Quota   |
|               |                   | (       | Period** | Duty**    |
|               |                   | M.T.)** |          |           |
|               |                   |         |          | **(%)**   |
+---------------+-------------------+---------+----------+-----------+
| 0305.51.10    | *Gadus morhua*    | 25,000  | Jan-     | 0         |
|               | and *Gadus ogac.* |         | December |           |
| 0305.51.90    | species.          |         |          |           |
|               |                   |         |          |           |
| 0305.62.00    |                   |         |          |           |
+---------------+-------------------+---------+----------+-----------+
| 0305.59.11    | *Boreogadus       |         |          |           |
|               | saida*            |         |          |           |
| 0305.59.19    |                   |         |          |           |
|               |                   |         |          |           |
| 0305.69.10    |                   |         |          |           |
+---------------+-------------------+---------+----------+-----------+

Note: Pacific cod is excluded from the WTO Quotas. This year's quota is
currently depleted.

**EU Salted Dry Cod Import Quota for Norway**

  ----------------- ------------------ ------------------- ---------------
  **Product         **Total Quota**    **Import Duty (%)** **Period in
  Description**                                            Effect**

  Salted Dry Cod    13,250 Mt          0 pct               April 1 to Dec.
                                                           31
  ----------------- ------------------ ------------------- ---------------

## Marketing 

Salted wet cod has favorable market prospects in Portugal given the
current high industry dependency upon imports and presently favorable
dollar rates. Further, industry contacts often indicate that U.S. wet
salted cod is a more reliable product quality-wise than frozen
processing cod.

Due to lack of local buyer's knowledge of the U.S. cod industry and long
shipping distances, U.S. fish exporters need to cater to this market,
namely by attending local food shows to increase exposure to local
buyers, and by maintaining high product quality standards. AGOFFICE
strongly recommends, among others, regular participation in the
\"Conxemar\" seafood show, which is held yearly during the first week of
October in Vigo, located north of Aveiro, Portugal's cod \"capital\",
where the cod processing industry is concentrated.

U.S. exporters wishing to export wet salted cod into Portugal should
contact the following:

Office of Agricultural Affairs

Lisbon - Portugal

Telf.: + 351 - 21 770 2354/56

Fax: + 351 - 21 726 9721

Email:

Associacao dos Industriais do Bacalhau (AIB)

Telf.: + 351 - 234 368 002

Fax: + 351 - 234 368 003

Email:

Note: For frozen processing cod

For additional information regarding the Portuguese cod sector, see FAS
GAIN Report #PO3001

# Commodity Name: Total Edible Fishery Products

## Production, Supply & Distribution Table 

  -------------------- ---------- ---------- ---------- ---------- ---------- ----------
  PSD Table                                                                   

  Country              Portugal                                               

  Commodity            Total                                       (MT)       
                       Edible                                                 
                       Fishery                                                
                       Products                                               

                       2002       Revised    2003       Estimate   2004       Forecast

                       USDA       Post       USDA       Post       USDA       Post
                       Official   Estimate   Official   Estimate   Official   Estimate
                       \[Old\]    \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  Market Year Begin               01/2002               01/2003               01/2004

  Landings/Comm\'l     140000     198033     0          210000     0          215000
  Catch                                                                       

  Fresh/Frz Production 78800      125561     0          134300     0          137300

  Canned Production    32500      32165      0          33000      0          34000

  Cured Production     700        700        0          700        0          700

  Total Production     112000     158426     0          168000     0          172000

  Fresh/Frozen Imports 230000     249583     0          254575     0          256000

  Canned Imports       6400       7118       0          4270       0          4000

  Cured Imports        218000     195125     0          183500     0          180000

  TOTAL Imports        454400     451826     0          442345     0          440000

  Fresh/Frozen Exports 70000      74557      0          52190      0          52000

  Canned Exports       11000      8663       0          7086       0          7000

  Cured Exports        17000      23908      0          25800      0          26000

  TOTAL Exports        98000      107128     0          85076      0          85000

  Domestic Consumption 468400     503124     0          525269     0          527000
  -------------------- ---------- ---------- ---------- ---------- ---------- ----------

## Production 

Total 2002 fish landings in the PSD Table have been revised to reflect
newly published production data by the national statistics office (INE).
Sardines account for 32 pct of total 2002 fish landings, and Atlantic
horse mackerel for eight pct. A long list of fishes caught in reduced
quantities in national and international waters follow.

Total fish landings are estimated to expand moderately in 2003 due to
the effects of improved stocks for critical species, including sardines,
the chief species caught off the Portuguese coast. This is confirmed by
preliminary production data from the general fisheries directorate
(DGPA), according to which local first quarter 2003 fish landings rose
by eleven pct relative to first quarter 2002 levels. Favorable
production trends related to adequate fish stocks management practices
for most species are expected to enable Portuguese total fish landings
to rise moderately in 2004. However, the 2004 fish crop expansion will
be contained by new production constraints, among which the access of
the Spanish fleet to Portuguese waters. This development, derived from
the Common EU Fisheries Policy (check \"Policy\" section), is to affect
catch of certain fishes found between 12 and 200 miles off the
Portuguese coast, namely swordfish and tuna fish. Total impact of the
\"comunitarization\" of Portuguese waters is not believed to be nearly
as significant as it might seem due to water access terms to be set,
which among others, will imply specific activity control rules for
newcomers. Further, the bulk of the fisheries resources off the
Portuguese coast are concentrated within the twelve-mile limit.

Virtually all of the local fish catch is sold fresh, with only about
30,000 tons being frozen, either aboard the vessels or on land by the
local fish processing industry. Canned fish production is expected to
increase moderately in 2003 due to the larger catch of fish
traditionally used for canning, namely sardines, tuna fish and chub
mackerel. Cured fish production from Portuguese harvested fish tends to
be stable (see \"Production\" under \"Salted Cod, n.d.\"). Quality of
both fresh and frozen fish sold in the market is considered good and in
compliance with EU health directives and regulations.

The national statistics office (INE) reports that the Portuguese fishing
fleet totaled 10,548 vessels in 2002 (10,532 in 2001) with 110,586 tons
(110,072 tons in 2001). Vessels under 5 tons accounted for 86 pct of the
fleet number and 13 pct of tonnage. There are 178 vessels fishing in
international waters, of which 119 are registered in the Azores.

## Consumption 

Portuguese consumption of total edible fishery products is estimated to
expand in 2003 in association with the larger domestic fish catch and
with a relative price stability of fish products. The national
statistics office reports that during the first quarter of 2003, the
average consumer price index for seafood products rose by 2.6 pct
relative to first quarter 2002 levels, which compares favorably against
a national inflation of 4 pct and a 2.3 pct increase in average food
prices. Another moderate expansion in domestic total seafood consumption
is expected for 2004 due to the positive outlook of the 2004 catch.

## Trade 

### General 

Total volume of seafood imports in 2003 is estimated to come down
moderately relative to 2002 levels. INE reports that during the first
semester of 2003, Portuguese fresh/frozen seafood imports were up by 2.3
pct, whereas cured fish dropped by 6 pct and canned seafood by 42.4 pct.
This largely reflects trade developments in the processing cod business,
with a trend for frozen cod to displace salted wet cod as raw material
for salted dry cod production. In addition to frozen processing cod and
salted dry cod, a series of fish types were imported in larger
quantities during the first half of 2003. These include live/fresh squid
and loligo (14 pct up relative to first semester 2002 levels), fresh
monkfish (44 pct up) and frozen monkfish (13 pct up). Another moderate
reduction in total seafood imports is forecasted for 2004 due to both
the salted wet cod and canned seafood segments.

Total seafood imports from the U.S. will tend to be down during 2003,
with INE reporting a 20 pct reduction in U.S. trade into Portugal during
the first semester 2003 against first semester 2002 levels. This poor
performance is primarily due to the lower wet cod sale caused by a
demand slowdown (see \"Salted Cod, n.d.\"). Other than frozen processing
cod, the U.S. managed to increase moderately first semester 2003 frozen
salmon exports into Portugal, even when faced with a 33 pct reduction in
total frozen salmon imports. Other traditional species have been
affected by the commercial aggressiveness of its EU competitors or
alleged trade problems. Loligo imports from the U.S. in particular have
been affected by the competition of the Spanish squid, which is fished
off the Falkland Islands. Level of seafood imports from the U.S. will
largely depend upon currency factors, as well as upon the efforts
produced by the U.S. fish industry to develop a market here.

Trade Matrices for Total Edibel Fishery Products for CYs 2001 and 2002,
as well as for the first semesters 2002 and 2003 are given below, with
data from the national statistics office (INE).

### Import Trade Matrix \-- CYs 2001 and 2002 

  -------------------- --------------- ------------------- ---------------
  Import Trade Matrix                                      

  Country              Portugal                            

  Commodity            Total Edible                        
                       Fishery                             
                       Products                            

  Time period          CY              Units:              Metric Tons

  Imports for:         2001                                2002

  U.S.                 23285           U.S.                17302

  Others                               Others              

  Spain                149472          Spain               148834

  Denmark              24537           Denmark             39784

  Netherlands          12006           Netherlands         16694

  Other EU             26852           Other EU            36126

  Norway               71254           Norway              64508

  Iceland              60326           Iceland             46589

  Russia               30009           Russia              29785

  S. Africa            8348            S. Africa           7103

  Canada               6865            India               5177

  India                5495            Ghana               4629

  Total for Others     395164                              399229

  Others not Listed    32188                               35295

  Grand Total          450637                              451826
  -------------------- --------------- ------------------- ---------------

### Export Trade Matrix \-- CYs 2001 and 2002 

  -------------------- --------------- ------------------- ---------------
  Export Trade Matrix                                      

  Country              Portugal                            

  Commodity            Total Edible                        
                       Fishery                             
                       Products                            

  Time period          CY              Units:              Metric Tons

  Exports for:         2001                                2002

  U.S.                 1658            U.S.                2129

  Others                               Others              

  Spain                61192           Spain               68750

  France               9105            France              8874

  Italy                4546            Italy               5722

  U.K.                 3034            U.K.                4217

  Other EU             5240            Other EU            4423

  Brazil               5748            Brazil              4840

  Angola               2159            Angola              1840

  Canada               1581            Canada              1622

                                                           

                                                           

  Total for Others     92605                               100288

  Others not Listed    4674                                4711

  Grand Total          98937                               107128
  -------------------- --------------- ------------------- ---------------

### Import Trade Matrix \-- First Semester 2002 and 2003 

  -------------------- --------------- ------------------- ---------------
  Import Trade Matrix                                      

  Country              Portugal                            

  Commodity            Total Edible                        
                       Fishery                             
                       Products                            

  Time period          1st Semester    Units:              Metric Tons

  Imports for:         2002                                2003

  U.S.                 9074            U.S.                7263

  Others                               Others              

  Spain                70982           Spain               76099

  Denmark              15837           Denmark             20030

  Netherlands          7567            Netherlands         9044

  Other EU             14429           Other EU            13531

  Norway               32431           Russia              24134

  Iceland              27462           Norway              20726

  Russia               14078           Iceland             14708

  S. Africa            3600            S. Africa           3947

  Ghana                3195            China               3564

  Canada               3107            India               2625

  Total for Others     192688                              188408

  Others not Listed    16432                               16505

  Grand Total          218194                              212176
  -------------------- --------------- ------------------- ---------------

### Export Trade Matrix \-- First Semester 2002 and 2003 

### 

  -------------------- --------------- ------------------ ----------------
  Export Trade Matrix                                     

  Country              Portugal                           

  Commodity            Total Edible                       
                       Fishery                            
                       Products                           

  Time period          1st Semester    Units:             Metric Tons

  Exports for:         2002                               2003

  U.S.                 868             U.S.               673

  Others                               Others             

  Spain                37935           Spain              24379

  France               4089            France             4158

  Italy                1840            Italy              2867

  U.K.                 1824            U.K.               1462

  Other EU             2468            Other EU           1960

  Brazil               2905            Brazil             3779

  Canada               742             Canada             841

  Switzerland          383             Angola             539

  Angola               340             Switzerland        375

                                                          

  Total for Others     52526                              40360

  Others not Listed    1978                               1912

  Grand Total          55372                              42945
  -------------------- --------------- ------------------ ----------------

##  Policy 

### Production Policy 

The Portuguese fishing industry is subject to the EU Common Fisheries
Policy, which was object of a Reform in December 2002. The new EU
fishing policies are considered generally restrictive due to both new
fish stocks management rules, and changes to the EU investment subsidy
regime.

Under the new fish stocks management rules, Portuguese fishermen are
affected by both the fishing plans developed by the EU for cod and hake
catch in Northern Atlantic waters, as well as by special management
plans that are presently being developed for hake and crayfish
populations in national waters. The new structuring investment support
regime approved by the EU is also considered restrictive, as financial
supports for the construction of new fishing vessels, or for any
investments to increase fishing capacity, are to be eliminated. However,
this policy has been mitigated by a derogation that allows subsidization
of boats under 400 gross tons until the end of 2004. The emphasis of the
new EU fisheries policy upon vessel abatement and fishing capacity
reduction also expresses itself in the accrued subsidy levels for
investments involving a large reduction in fishing capacity when devoted
to species with stock problems (a 20 pct subsidy premium is to be
conveyed to investments involving a 25 percent reduction in fishing
capacity under those conditions). Portugal currently applies a
multi-year Operational Fisheries Plan (POP-4) directed to the
re-structure of the national fleet, which will be in effect through
2006. Out of the 52 vessels that were fishing in Moroccan waters during
the 1997/99 period, fourteen have been removed from the fleet by way of
EU subsidies or shipwrecked. All others have been either integrated in
the swordfish fleet operating in the Mediterranean, or exported to third
countries where they formed joint ventures or fished under a fishing
agreement with the EU. A couple of vessels are reported to have formed
joint-ventures in Morocco. For the full text of the new EU Fisheries
Policy, see EU Regulation 2369/02.

TACs in national and EU waters are set by the EU, which also negotiates
bilateral agreements with third countries on Portugal´s behalf, and
negotiates TACs with international fishing organizations on behalf of EU
Members. TACs concerning Portugal set for 2003 are given in table below:

**Portuguese 2003 Fishing T.A.C.s**

+-----------------------------------------+---------+---------+-------+
|                                         | EU TAC  | Por     | Vari  |
|                                         | (Mt)    | tuguese | ation |
|                                         |         | Quota   |       |
|                                         |         | (Mt)    |       |
+-----------------------------------------+---------+---------+-------+
| **National Waters**                     | 8,000   | 4,174   | 0 %   |
|                                         |         |         |       |
| European Anchovy                        | 2,400   | 74      | -40 % |
|                                         |         |         |       |
| Megrim                                  | 4,000   | 663     | -16 % |
|                                         |         |         |       |
| Monkfish                                | 1,360   | 1,360   | -20 % |
|                                         |         |         |       |
| Whiting                                 | 6,960   | 2,090   | -13 % |
|                                         |         |         |       |
| Hake                                    | 30,415  | 6,083   | 0 %   |
|                                         |         |         |       |
| Blue Whiting (VIIIc,IX,X,CECAF 34.1.1)  | 600     | 450     | -25 % |
|                                         |         |         |       |
| Norway Lobster                          | 448     | 75      | -19 % |
|                                         |         |         |       |
| Plaice                                  | 360     | 12      | -20 % |
|                                         |         |         |       |
| European Pollock                        | 35,000  | 5,963   | -15 % |
|                                         |         |         |       |
| Atlantic mackerel                       | 1,600   | 998     | -20 % |
|                                         |         |         |       |
| Sole                                    | 55,200  | 25,036  | -4 %  |
|                                         |         |         |       |
| Atlantic horse Mackerel (VIIIc, IX)     | 3,200   | 3,200   | -20 % |
|                                         |         |         |       |
| Atlantic horse Mackerel (X)             | 1,600   | 1,600   | -20 % |
|                                         |         |         |       |
| Atlantic horse Mackerel (CECAF)         | **15    | **5     | **-8  |
|                                         | 1,143** | 1,778** | %**   |
| **Total National Waters**               |         |         |       |
+-----------------------------------------+---------+---------+-------+
|                                         |         |         |       |
+-----------------------------------------+---------+---------+-------+

(To be Continued)

**Portuguese 2003 Fishing T.A.C.s** (Cont'd)

+------------------------------------+------------+-----------+-------+
|                                    | EU TAC     | P         | Vari  |
|                                    | (Mt)       | ortuguese | ation |
|                                    |            | Quota     |       |
|                                    |            | (Mt)      |       |
+------------------------------------+------------+-----------+-------+
| **External Quotas**                | 14,6654    | 829       | \- 56 |
|                                    |            |           | %     |
| \- [EEC-10]{.underline}            | \-         | 1,073     |       |
|                                    |            |           | \+ 0  |
| Blue whiting (VIII abd)            | 111,300    | 1,246     | %     |
|                                    |            |           |       |
| Blue whiting                       | 14,000     | 1,003.6   | \- 9  |
| (I,II,V,VI,VII,XII,XIV)            |            |           | %     |
|                                    | 16,631     | 368       |       |
| Atlantic horse mackerel (Vb,       |            |           | \+ 32 |
| VI,VII,VIIIabde,XII,XI)            | 32,00      | 752.3     | %     |
|                                    |            |           |       |
| \- [Large Migrating                | 34,500     | 2,730.4   | \- 4  |
| species]{.underline}               |            |           | %     |
|                                    | 29,200     | 908.7     |       |
| Swordfish (North Atlantic, 5th)    |            |           | \- 6  |
|                                    | 97,000     | 9908      | %     |
| Swordfish (South Atlantic, 5^th^)  |            |           |       |
|                                    | 35,500     | 46.5      | \+ 40 |
| Northern Bluefin Tuna              |            | (un       | %     |
|                                    | 395,000    | -divided) |       |
| Albacore                           |            |           | \+ 38 |
|                                    | 519 days   | 103       | %     |
| Albacore                           |            | (un       |       |
|                                    | 119,000    | -divided) | \+ 72 |
| Big eye Tuna                       |            |           | %     |
|                                    | 1,000      | 41        |       |
| White marlin                       |            |           | \- 49 |
|                                    | 395,000    | 1,425     | %     |
| Blue marlin                        |            |           |       |
|                                    | 3,100      | 1         | \+ 0  |
| \- [Northeast                      |            | ship/123  | %     |
| Atlantic]{.underline}              | 14,500     | days      |       |
|                                    |            |           | \+ 0  |
| Atlantic Herring                   | 42,000     | 2,330     | %     |
|                                    |            |           |       |
| Cod (Svalbard)                     | 13         | 269       | \+ 19 |
|                                    | ships/400  |           | %     |
| Shrimp (Svalbard)                  | days       | 2,204     |       |
|                                    |            |           | \- 67 |
| Red Fish (Irminger Sea)            | *          | 2,354     | %     |
|                                    | *1,339,885 |           |       |
| \- [Norway]{.underline}            | (\*)**     | 290       | \+ 0  |
|                                    |            |           | %     |
| Red Fish                           |            | 4,858     |       |
|                                    |            |           | \+ 0  |
| Cod                                |            | 1 ship/69 | %     |
|                                    |            | days      |       |
| \- [Northwest                      |            |           | \+    |
| Atlantic]{.underline}              |            | *         | 11.6  |
|                                    |            | *32,300** | %     |
| Red Fish (3 M)                     |            |           |       |
|                                    |            |           | \- 5  |
| Yellowtail flounder (3 LNO)        |            |           | %     |
|                                    |            |           |       |
| Plain bonito (3 LMNO)              |            |           | \+ 0  |
|                                    |            |           | %     |
| Shrimp (3M)                        |            |           |       |
|                                    |            |           | **+   |
| **Total External Quotas**          |            |           | 13    |
|                                    |            |           | %**   |
+------------------------------------+------------+-----------+-------+

(\*) All EU TACs, including those un-distributed to Portugal.

An important issue with consequences for the Portugese fisheries sector
currently under discussion is the \"communitarization\" of national
waters. This issue was triggered by Spanish demands for access to waters
off the Portuguese coast between 6 and 200 miles under the principles of
the EU Common Fishing Policy. This \"communitarization\" is a complex
issue as, unlike most EU countries whose Water Units tend to coincide
with geographical borders, the Water Management Unit off the Portuguese
coast extends beyond the Portuguese northern and southern geographical
borders into Spanish waters. The implementation of open access to the
Water Management Unit will imply access to currently Portuguese waters
by the Spanish fleet, and only to limited Spanish waters for the
Portuguese one. However, given its political and legal inevitability,
Portuguese authorities have pursued action to minimize potential losses.
Extension of waters to be \"communitarized\" was narrowed from the 6 to
200 mile strip as initially claimed by Spanish authorities to the 12 to
200 mile one, thus protecting the 12-mile zone, which is the richer in
natural resource terms. \"Communitarized\" water tends to be populated
primarily with migratory species, including swordfish and tuna fish,
which were not traditionally fished by mainland Portuguese fishermen. At
the same time, the water \"communitarization\" will imply enforcement of
new control measures to prevent stocks depletion, which will also tend
to limit the fishing capacity of the Spanish fleet. Under the Fishing
Reform, the Azores and Madeira islands kept a 50 mile water reserve, and
are presently negotiating an extension to the 200 mile limit. The new
water \"communitarization\" provisions integrate an EU regulation
presently under discussions, which is expected to be approved by the EU
Council of Ministers in October.

### Tariff Regime 

Portuguese seafood imports are subject to the EU import tariff regime. A
list of processing fish is currently subject to the EU duty suspension
regime under Council Regulations 104/2000 and 2264/2002. For EU import
tariffs in effect for key seafood products, see the Tariff Table at the
end of report.

## Marketing 

EU trade policies favor seafood products which benefit from the EU duty
suspension regime. These include processing salmon, sturgeon, lump fish
with roe, red snapper, hard fish roes, krill, and certain varieties of
crabs, which are currently tariff-free. Frozen Alaska pollock fillets
and processing prawns also benefit from suspended duties, while
processing cod can be imported at a 3 pct tariff rate, and surimi and
frozen blue grenadier fillets and meat at a 3.5 % tariff rate.

In order to develop markets here, U.S. exporters are advised to work
closely with the local trade, and to participate regularly in regional
seafood shows. AGOFFICE strongly recommends among others, regular
attendance of the \"Conxemar\" Seafood Show, which is held yearly during
the first week of October in Vigo, Spain. Due to its proximity to
northern Portugal, this show is attended by the majority of larger
Portuguese seafood importers.

U.S. exporters wishing to export seafood into Portugal should contact
the following (for cod, check \"Salted Cod, n.d.\"):

Office of Agricultural Affairs

Lisbon - Portugal

Telf.: + 351 - 21 770 2354/56

Fax: + 351 - 21 726 9721

Email:

Associacao dos Comerciantes de Pescado (ACOPE)

Telf.: + 351 - 21 974 096/217 978 884

Fax: + 351 - 217 951 695

Email:

Note: For all other groundfishes, fresh or frozen

GRUPO GEL

Telf.: + 351 - 22 939 8340

Fax: + 351 - 22 939 8349

Email:

Note: Leading frozen fish buyer's group

NOVA SEC

Telf.: + 351 - 21 301 7858

Fax: + 351 - 21 301 7860

Note: Frozen fish buyer's group

####### FISHERY PRODUCTS STRATEGIC INDICATOR TABLE

+-----------------------+-----------+------+--------+--------+--------+
|                       |           | **Pr | **Cur  | **     | **5    |
|                       |           | evio | rent** | Next** | Year** |
|                       |           | us** |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
|                       |           | **Ye | **     | **     | **Pr   |
|                       |           | ar** | Year** | Year** | ojecti |
|                       |           |      |        |        | ons/** |
+-----------------------+-----------+------+--------+--------+--------+
| **U.S. Competitive    | ###       | *    | *      | **Ex   | **Ex   |
| Position**            | ##### Mea | *Sit | *Situa | pectat | pectat |
|                       | surement  | uati | tion** | ions** | ions** |
|                       |           | on** |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| U.S. Access Relative  | Worse,    | w    | worse  | worse  | worse  |
| to Rest of World-     | equal, or | orse |        |        |        |
| Non-Tariff Measures   | better    |      |        |        |        |
| (NTM)                 | (choose   |      |        |        |        |
|                       | one)      |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| U.S. Access Relative  | Higher,   | l    | lower  | lower  | lower  |
| to Rest of World -    | equal, or | ower |        |        |        |
| Tariffs               | lower     |      |        |        |        |
|                       | (choose   |      |        |        |        |
|                       | one)      |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Presence of Marketing | More      | More | More   | More   | More   |
| Programs (domestic    | ag        | ag   | aggr   | aggr   | aggr   |
| and 3rd country)      | gressive, | gres | essive | essive | essive |
| versus U.S. programs  | about the | sive |        |        |        |
|                       | same, or  |      |        |        |        |
|                       | less      |      |        |        |        |
|                       | a         |      |        |        |        |
|                       | ggressive |      |        |        |        |
|                       | (select   |      |        |        |        |
|                       | one)      |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| U.S. Prices Relative  | Higher,   | Hi   | Higher | Higher | Higher |
| to Domestic and 3rd   | equal, or | gher |        |        |        |
| Country Prices        | lower     |      |        |        |        |
|                       | (choose   |      |        |        |        |
|                       | one)      |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| U.S. Market Share (3  | Percent   | 3.8  | 3.4    | 3.5    | 4.0    |
| Year. Average)        |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+

###### FISHERY PRODUCTS STRATEGIC INDICATOR TABLE

+-----------------------+-----------+------+--------+--------+--------+
|                       |           | **Pr | **Cur  | **     | **5    |
|                       |           | evio | rent** | Next** | Year** |
|                       |           | us** |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
|                       |           | **Ye | **     | **     | **Pr   |
|                       |           | ar** | Year** | Year** | ojecti |
|                       |           |      |        |        | ons/** |
+-----------------------+-----------+------+--------+--------+--------+
| **Market              | ###       | *    | *      | **Ex   | **Ex   |
| Attractiveness**      | ##### Mea | *Sit | *Situa | pectat | pectat |
|                       | surement  | uati | tion** | ions** | ions** |
|                       |           | on** |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Per Capita            | Kg per    | 50.3 | 52.5   | 52.7   | 52.7   |
| Consumption of All    | person    |      |        |        |        |
| Fishery Products      |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Per Capita            | Kg per    | 62.5 | 62.6   | 62.7   | 62.8   |
| Consumption of animal | person    |      |        |        |        |
| proteins (excluding   |           |      |        |        |        |
| fishery products)     |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Percent of population | Percent   | 96.1 | 96.2   | 96.3   | 96.5   |
| with refrigerators    |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Percent of fishery    | Percent   | 44   | 43     | 42     | 40     |
| product sales at      |           |      |        |        |        |
| supermarkets          |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Percent of total food | Percent   | 50   | 50     | 50     | 50     |
| sales at supermarkets |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Percent of animal     | Percent   | 22   | 20     | 18     | 15     |
| protein sales at      |           |      |        |        |        |
| supermarkets          |           |      |        |        |        |
| (excluding fishery    |           |      |        |        |        |
| products)             |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Percent of fishery    | Percent   | 10   | 10.5   | 11     | 12     |
| sales at HRI          |           |      |        |        |        |
| establishments        |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+
| Percent of fishery    | Percent   | 4    | 4.5    | 5      | 6      |
| sales at open markets |           |      |        |        |        |
+-----------------------+-----------+------+--------+--------+--------+

## Tariff Table 

Portuguese seafood imports are subject to the EU import tariff schedule.
Below we provide tariffs in effect for key seafood products. For more
detail, please check FAS GAIN Report #E23007.

**PORTUGAL: Import Tariff Table**

  ------------------------------------------------------ ----------------
  Product Description                                    Tariff in effect
                                                         (%)

  Processing Cod                                         3 (suspended)

  Frozen monkfish                                        15

  Loligo                                                 6

  Frozen Alaska Pollock                                  15

  Frozen Pacific Salmon                                  2

  Live Lobster                                           8

  Fresh/Live Crawfish                                    12.5

  Minced cod of the Gadus macrocephalus sp.              7.5

  Processing Tuna Fish                                   0

  Frozen loligo (loligo vulgaris)                        6

  Processing Alaska Salmon                               0 (suspended)

                                                         
  ------------------------------------------------------ ----------------

Note: Under the duty suspension regime, imported seafood must

respect minimum entry prices.