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Filets for France Fish-heads for the Philippines. International fish trade, tariff reduction and sustainability. Prepared by Marc Allain for Greenpeace International WTO Public Forum September 26, 2006. World Fisheries Production.
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Filets for France Fish-heads for the Philippines International fish trade, tariff reduction and sustainability Prepared by Marc Allain for Greenpeace International WTO Public Forum September 26, 2006
World Fisheries Production Source: FAO, Review of the state of world marine fishery resources (2005)
Trade flows(2002 Export values %) High value species/products flow North (shrimp, salmon, tuna, grounfish, lobster, octopus) North ↦ North ↤ South (42 %) (43%) Low value species/products flow South (pelagics/fishmeal & oil) North ↦ South ↤ South (6.5%) (8.5%)
Trade flows High net surplus in fish trade for Developing countries (20 Billion US$ - 2004) • LIFDC: • 9 billion US$ net surplus (2003) • Helps reduce balance of payments problem
Tariff overview main markets EU • MFN average for seafood 12% • Lots of tariff peaks and tariff escalation US • Seafood tariffs much lower than EU • Anti-dumping levies very high (shrimp/catfish) Japan • Seafood tariffs higher than US lower than EU • Some tariff escalation & peaks • Import quotas
Theory of fish trade liberalization • Tariff cuts change price • Consumers pay less • Producers get paid more • Price change increases supply • In fisheries supply can only increase up to maximum sustainable levels
Theory of fish trade liberalization • Ineffective management leads to overfishing and depletion. • Fish trade liberalization can only bring sustainable benefits if effective fisheries management exists in both exporting and importing countries.
UNEP case studies • Mauritania, Argentina & Senegal • Duty free access to EU for fish exports in exchange for EU access to stocks
Mauritania • Duty free access to EU in 1987 • Majority of demersal species now over-exploited. • Shark and ray stocks heading towards extinction • Previously plentiful species have disapeared from Mauritanian waters • Discards and dumping so voluminouscreating marine polution problems • Food security worsening • Government under IFI pressure to sell off fisheries resources to meet minimal economic growth targets.
Argentina • Duty free access to EU 1994 • Fish production & exports increased rapidly in a context of “enormous deficiencies” in fisheries management. • In 97 TAC exceeded by 111%. • By 2002 – 6 Argentine stocks endangered
Externalizing the costs Cost benefit analysis of argentine hake fishery: • Private fish companies: + 1.6 billion US$ • Fishworkers: + 1.4 billion US$ • Argentine state: + .05 billion US$ • Future generations -3.5 billion US$ “The market is short sighted with respect to any concern for future generations and a sustainable environment.”
Senegal • Duty free access to EU has created a conservation crisis & undermined food security. • Catch rates falling for all species but export species especially high/some threatened with extinction. • Export species being fished before they reach sexual maturity • Dragging in offshore areas has destroyed & changed habitat, eroded biodiversity & induced ecological replacement. • Quantity & quality of domestic supply diminished & costs to consumers increasing.
Conclusions • Senegal, Mauritania, Argentina are not exceptions in fisheries management. • Developing countries • Can’t afford fisheries management. • Squeezed by IFIs to increase exports. • Preyed upon by fishing nations.
Conclusions • Only handful of fish exporting developed countries will benefit longterm from tariff cuts: Canada, Norway, Island, New Zealand. • Short/medium term gains for Thailand. • All others will lose.
Conclusions • Tariff cuts in this context will only accelerate resource depletion, loss of biodiversity, undermine food security, livelihoods and employment in LDCs. • When this happens we all lose.
Conclusions • Fundamental incoherence of Doha. • If Doha is about sustainable trade & development for LDCs then it can’t be about fisheries.