ACP Case Studies on fisheries agreements and relations with EU SEYCHELLES April 2003

1. ACP Case Studies on fisheries agreements and relations with EU SEYCHELLES April 2003 Philippe Michaud

2. Some basic statistics for 2001 • Population: 81,200 • Life expectancy: 72.94 • Literacy rate: 94% • Total formal employment: 33,213 • Land area: 444 Km² • GDP at market prices (million rupees): 3,337 (US$ 570.4m) • Per capita GDP at market price (rupees): 41,093 (US$ 7,000)

3. Access Agreements • European Union • Duration: 3 years • No. of purse seiners: 40 • No. of longliners: 32 •   EU financial compensation of EURO 2.3m p.a. • EU financial contribution of EURO 3.48m for 3 year period • JAPAN TUNA & ZENGYOREN • 1 year agreement for longliners • Taiwan Deep Sea Tuna Boatowners & Exporters Association • 3 year agreement for longliners • Mauritius • 2 year renewable agreement for 5 purse seiners and 1 longliner • ‘Private Agreements’ • 1 year agreement for both long liners and purse seiners

4. Country 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 France 17 16 17 17 17 17 17 19 16 14 14 14* Spain 20 18 18 19 18 19 22 22 22 23 16 17 Italy 0 0 0 0 0 0 0 1 1 1 1 1 Mauritius 2 3 3 3 3 3 3 2 1 1 0 0 Panama 5 1 3 3 3 2 3 4 2 1 2 1 Liberia 5 1 3 3 3 6 3 5 4 4 0 0 Japan 3 5 8 9 1 0 0 0 0 0 0 0 Seychelles 0 1 1 0 0 0 0 5 5 5 5 6 Iran 0 0 0 0 2 0 0 0 0 1 1 2 Belize 0 0 0 2 4 4 4 5 4 3 5 0 N. Antilles 0 0 0 0 0 0 0 2 4 3 4 4 Average 52 45 53 56 51 51 52 65 59 56 48 45 Average number of purse seiners licensed in Seychelles by country of registration (1990-2001) * includes 3 French vessels registered in Mayotte

5. Seychelles experience from access agreements • (i) Licence payments • Flat rate payment, payment based on catch and value of catch, catch • in EEZ, payment in kind. • · Flat rate payments preferred • · Variable payments can fluctuate considerable problems of reliability of catch data • ·EU’s contributions for specific projects has been very helpful • (training, VMS, development…) • (ii)VMS • Condition of licence for all boats • (iii)Data • Reporting good with purse seiners but needs to improve with long • liners • (iv)Use of Port • Licence payment is not the most important consideration but value added to the country

6. Economic contribution of the fisheries sector (i)Employment: % of total employment Canning factory 7.6 Local fishing 3.3 Industrial fisheries service sector 3.1 ----- 14.0 ------ (ii)Exports: Canned tuna exports represent 87% of the country’s foreign exports (iii)Foreign Exchange Earnings SR.M   Canned tuna exports 771.17 Other fish exports 74.68 Revenue from industrial tuna activities 274.60 Licence fees 24.69 ---------- 1,145.14 * Tourism Related earnings 770.0 ** * US$ 195.8 m ** US$ 131.2m

7. The Seychelles Canning Factory Indian Ocean Tuna -         2nd largest in the world -         No. 1 measure in value of turnover -         Processed 90,000 mt per annum -         14% of the canned tuna imported into the EU Challenges -      Cost differentials between a small island nation and large nations such as Thailand and Philippines are naturally preferential to the large countries. -     Due to location and having to import following costs higher:-

8. Edible oils • Cans • Secondary and tertiary packaging • Working capital • Freight costs • …… • -         Due to local conditions the following costs are higher: • Fixed salaries and indirect labour • Electricity, fuel and water • Depreciation (high asset base to automate and run high labour efficiency) • …..

9. Conclusion • -   Lower tariffs will have an impact on: •  Cannery • EU fleets • The Seychelles economy • The exact level of impact is difficult to quantify.

10. Thank You