Seafood exporters say new US tariff still leaves Sri Lanka uncompetitive

Saturday, 12 July 2025 01:19 - - {{hitsCtrl.values.hits}}

Lankan seafood exports to US accounts for over 25% of total and for some seafood products such as pasteurised crab meat its 100%
Industry body urges Govt. to negotiate further tariff reductions to levels comparable to regional competitors
Calls for unified action and diversification

The Seafood Exporters’ Association of Sri Lanka (SEASL) yesterday expressed serious concern that the recent reduction of US tariffs from 44% to 30% on Sri Lankan exports has been mischaracterised as a significant breakthrough.

While the reduction has prevented the complete loss of US market access, the Association emphasised that Sri Lankan seafood exporters remain at a severe disadvantage compared to regional competitors.

Sri Lankan seafood exports to the US accounts for more than 25% and for some seafood products such as pasteurised crab meat its 100%. “Even at 30%, our exports face significantly higher duties than those from Vietnam and the Philippines, which enjoy tariffs of 20% or less,” SEASL said. “This disparity affects critical export sectors such as seafood, tea, coconut products, and processed foods — industries that collectively support thousands of Sri Lankan jobs and livelihoods.”

The Association highlighted that its members are actively working to diversify export destinations, including building stronger market positions in the Middle East, Far East, and Europe. However, it cautioned that establishing meaningful market share takes sustained investment, time, and a supportive policy environment. Our competitiveness is already constrained by higher raw material costs in Sri Lanka and the burden of domestic taxes, both of which directly impact the prices we can offer to our buyers,” the spokesperson noted. “The introduction of a 30% tariff will further strain the supply chain, directly affecting the prices paid to fishermen and ultimately threatening their livelihoods.

“While we are committed to investing in new markets, we urgently need the Government’s support to address these structural disadvantages.”

The SEASL urged Sri Lanka’s trade and business leadership to adopt a more assertive and strategic approach, including:

Negotiating further tariff reductions to levels comparable to regional competitors before 1 August 2025.

Establishing a clear, transparent roadmap for trade discussions with US authorities, with structured participation from industry representatives.

Developing a comprehensive export competitiveness strategy that improves supply chains, ensures compliance with international standards, and accelerates market access advocacy.

“This is not a victory. At best, it is a temporary reprieve,” the Association emphasised. “Without decisive action, Sri Lanka risks losing further ground in its most important markets while others secure long-term advantages.”

SEASL represents the country’s leading seafood producers and exporters, committed to sustainable practices, quality standards, and socially responsible operations. The Association supports its members in expanding Sri Lanka’s seafood exports globally, including active market development efforts in North America, the Middle East, Far East, and Europe. Through collaboration and advocacy, the Association works to strengthen the competitiveness and resilience of the seafood sector for the benefit of the national economy and coastal communities.

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