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StarKist wants to sell their tuna in Samoa

Apia, SAMOA — StarKist Samoa is trying to get a “foot into the Samoa market” and wants to “share its products” with Samoa given that the market in American Samoa is a “small market ” said StarKist Samoa general manager Brett B. Butler in a letter sent to the Director of Commerce Keniseli Lafaele earlier this month.

 

Butler was writing to the DOC director to raise the issue of limited market in the territory, and recommended it to be included in the two Samoa’s economic integration initiative at the Samoa Talks.

 

The June 10, 2014 letter — titled “Two Samoa’s Economic Integration Initiative” — was distributed during the inaugural meeting held yesterday in Samoa.

 

 In the letter, Butler said he writes on behalf of StarKist and M.r Ki Byung of Tafuna SM Mart Inc., who is the distributor of StarKist products in the territory, and they are trying to get a foot into the Samoa market.

 

Butler said the talks, which are slated for this Friday, “come at an opportune time to realize what benefits are at stake besides profit for the entrepreneurs.” He pointed out that StarKist is the top supplier of tuna products into the United States.

 

“American Samoa’s competitiveness in the global tuna market is due to American Samoa’s duty-free access into the US, American Samoa’s government tax free exemption status and the direct-delivered fish model we operate under.

 

“StarKist Samoa currently employs approximately 83% of its employees from  independent Samoa, and has historically shared a special relationship with Samoa as a result of this,” he wrote.

 

Butler pointed out that StarKist wishes to be able to share its products with the people who have contributed to the success of the plant in American Samoa.

 

“Through our local distributor, Tafuna SM Mart, StarKist canned tuna products are in more retails store than ever. However with the small market size, we would like to explore this opportunity in Samoa,” said Butler to the DOC Director.

 

The StarKist official pointed out in his letter that there is a distinct freight disadvantage between the two Samoas, and with StarKist tuna volume brought into a larger Samoa market “we feel that this can help offset freight costs for trade between both island nations — helping businesses from both sides.

 

“So we truly support ASG’s corroboration in verifying this opportunity with the existing shipping companies can help stimulate more trade,” said Butler.

 

“However, the premise for the above is based on volume, and this volume being tuna from StarKist.” He said StarKist is committed to supplying the highest quality at the lowest price to ensure families of Samoans are able to enjoy the finest tuna in the market.

 

Butler further stated that StarKist has learned that because canned tuna is a commodity it is relieved from any import duty, however a value added sales tax VAGST of 15% is assessed to all goods sold into Samoa.

 

“So the trade imbalance of 15% duty on the majority of the traded goods entering American Samoa from Samoa versus the 15% value added sales tax — plus a potential of duty tax depending on the commodity of goods sent from American Samoa into Samoa — creates a lopsided advantage for Samoa and a disadvantage for American Samoa trade.”

 

Butler in his letter, says he hopes that this will be discussed in the Two Samoa talks this week.

 

 “We also hope that with the special relationship between American Samoa and Samoa there is consideration between both governments to open up a special trade agreement due to our close blood ties that truly benefits both parties,” he stated.

 

BACKGROUND

 

Based on information received, Samoa News reported on June 5 that Butler had tendered his letter of resignation on May 30, with his last day on the job set for Jun. 15.

 

However, StarKist corporate spokesperson Michelle Faist provided a company statement which says “Brett Butler, current Director, General Manager, StarKist Samoa, will be taking a leave of absence for personal reasons starting June 16. StarKist Co. has named Sangdong Kwon, Director, Plant Operations, as interim plant manager in Butler’s absence,” according to the statement.

 

Samoa News was unable to reach Butler yesterday at his office to see if he is still on leave of absence and still employed with StarKist, or is his letter of resignation still on the table.