CASE 3.1 GLOBAL WAR ON DRUGS OR TUNA?

Points to consider

1. Discuss the different environmental factors having an impact on the tuna-processing

industry.

he difference environmental factors that have an impact in the process it's given because the
advance that the industry have along the time, which allows a gradual technique changes that
permit better ways to do the steps like the Drying, curing, preservation, freezing and extraction
of the tuna.

In addition, things like the volume of water and waste that the industry produce, affect the
processing of plants.

The garbage and waste produce by the plants affect the environment, because it have waste of
Chemical, biochemical oxygen, oils, solids, fats and low and high grade of PH.

We could say that the tuna-industry care about the environment, they make programs to
maintain the tuna safe.

2. How can international distribution strategy provide a competitive advantage? Which of

the three market players has the best distribution strategy?

In the international distribution strategy we found that the industry who have a better
competitive advantage was “Bumble Bee”, that’s because they do their hard work of “loining”
in Ecuador (The region´s biggest tuna exporter), even so other industry have business in Ecuador
too, the process of Bumble Bee is different, they do in a plant of 2000 Ecuadorian workers the
work of loining, and then ships its cooked fillet to its automated plants in California and Puerto
Rico, saving the canning until it enters the USA. This way, the company pays a low duty of 1.5
percent on its product.

3. In what ways are international trade treaties having an impact on the tuna canning
industry?

In the case we could see that treaties make on international trade always affect the industries,
sometimes positives, some negatives. In the case of the tuna industry, we could see that a
senator of Florida its making a treaty to work against drugs, but the affect the industry of tuna,
so the senator has proposed lowering tariffs on Ecuadorian tuna as an effort to revive the
Andrean Trade Preferences Act. This would expand and revive reductions in tariffs cut. As the
case says, “It will become a worldwide battle for and against tuna tariffs.

In other hands tuna industry is also affected because environmental treaties as the treaty
against the fishing of dolphins, and other laws in different countries. Several restrictions to the
industry.

4. How would you have approached this issue as a member country of ASEAN?

Seeing the reduction of tariff that is been study in the Andean region, plus the already existing
lower transport costs that have caused an increment on Ecuadorian exports of tuna to the US
to 600%. As member of the ASEAN, the approach used by Chicken of the Sea, seems to me the
more optimal. Since most of the tuna that arrives in the US comes from samoa (Samoa has one
of the richest tuna fishing spots in the world), by threatening to reduce labor in samoa by half it
would be less tuna produce and less tuna that arrives in the US, generating a fear of a possible
reduction in the offer of tuna that in the end would generate an internal dispute of unsatisfied
consumers in US.