The background to the issue is that the commission has the right to impose a tariff. A 20% tariff is imposed on imports of cold-water cooked and peeled shrimp into the European Union, but the European Union has decided to provide special exemptions and a preferred tariff rate for a certain amount of shrimp to enter the EU at a reduced tariff rate of 6%. The amount of quota that can enter the EU under the preferential rate has been increasing in the last few years as a result of discussions between Canada and the European Union, obviously indicating there is some merit to increasing the supply. The U.K. is the primary market for cooked and peeled shrimp; however, many European countries enjoy the product.
A 20% tariff does create a very difficult situation for Canadian producers. The vast majority of cold-water shrimp in the world today is from Canadian producers. The tariff rate does impose a somewhat large burden. We have been asking the European Union to consider increasing the amount that can enter the European Union at the reduced rate of 6%. All countries can compete, Canada included, for what I think is currently 7,000 tonnes that can enter the European Union at a 6% rate. The interesting note for parliamentarians—the calendar year being the beginning of the time period, January 1—is that 7,000 tonnes is normally filled by around January 15 of each year.
The European Union is a large consumer of cold-water shrimp. We feel very strongly, and we've been trying to make the case, that from a consumer point of view it would be extremely beneficial to have that either enter the European Union tariff-free or a much larger percentage enter with the lower tariff rate.
For example, as a result of the tsunami, the European Union has allowed a lot of warm-water shrimp to enter the European Union duty-free, tariff-free, as a constructive measure to support victims of the tsunami.
Again, it would be a strong move for consumers in the European Union to have access to this product at a lower tariff.