FISHERIES CHALLENGES FACING DEVELOPING COUNTRIES IN THE LIBERALIZED GLOBAL MARKET:
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1 FISHERIES CHALLENGES FACING DEVELOPING COUNTRIES IN THE LIBERALIZED GLOBAL MARKET: N. K. Gitonga (Mrs.) FISHAFRICA 1
2 Developing Countries Contribution to Global Fish Trade Developing countries contribute over 50% of the world fish trade. Net foreign exchange earnings from fish trade in developing countries have continued to rise contributing more than meat, tea, bananas and coffee put together. About 58% of fish consumed in the EU come from non-eu waters, mainly from developing countries
3 Major Fish Trade Challenges International Trade Agreements There is growing recognition that SPS measures can be used to impede trade in agricultural and food products. A major problem is that there is lack of mutual recognition of inspection and standards. Some major importing countries are asking for sameness in the process rather than equivalence Quality and safety requirements Ecolabelling and fisheries certification Sustainable fisheries management
4 International Agreements with respect to Fish Trade Regulatory Framework WTO Agreements Sanitary and Phytosanitary (SPS) Agreement Technical Barrier to Trade (TBT) Agreement
5 The SPS Agreement (1) The SPS Agreement confirms the right of WTO member country to apply measures necessary to protect human, animal and plant life and health. Some of the few provisions that favour developing countries include:- Special and Differential (S&D) provisions. S&D provide for developed countries to take into account the special needs of developing countries in the preparation and application of SPS measures;
6 The SPS Agreement (2) Participation. Developed countries are encouraged to facilitate active participation of developing countries in relevant international standard setting organizations. Under Article 3 of the SPS Agreement members are expected to base their SPS measures on the standards and guidelines or recommendations set by these organizations. Equivalency.. Under the Agreement members are also required to accept the measures of other members where they can be demonstrated to be equivalent and that they offer the same level of protection.
7 SPS Challenges for Developing Countries (1) Developing countries experience problems in meeting SPS requirements of importing countries and consider them as an impediment to trade. In most instances, the SPS requirements are incompatible with the prevailing systems of production and marketing in developing countries. The structural and organizational changes and associated costs necessary to achieve compliance can act to restrict trade in a similar manner to tariffs. In many countries, including East African countries, knowledge of SPS is poor and access to appropriate scientific and technical expertise is elusive.
8 SPS Challenges for Developing Countries (2) Lack of capacity to take a significant role in the standard setting process. Failure to demonstrate that domestic measures are equivalent to the developed countries requirements due to a poor scientific and technical infrastructure in many developing countries. Lack of financial or technical resources to implement stringent requirements.
9 Effects of application of SPS Measures on fish trade Application of SPS measures to bar trade without sufficient scientific evidence (e.g. case of cholera ban in East Africa and Mozambique in 1998 and pesticides in Lake Victoria fish in 1999 & 2000 by EU ). All eventually cleared but not without immense losses for small scale fishers Slow harmonization (equivalency) process. E.g. Process of accessing EU market, which depends on FVO inspectors availability.
10 Technical Barrier to Trade (TBT) Agreement The TBT Agreement includes measures designed to protect consumer against deception and economic fraud. The objective of TBT Agreement is to prevent use of national and regional technical requirements or standards in general, as unjustified technical barriers to trade The Agreement covers standards relating to all types of products including industrial products and quality requirement for foods, except those covered by SPS measures.
11 Interventions to Ensure Fair Trade in Fish And Fish Products Both SPS and TBT Agreements require member countries to provide technical assistance to developing countries Special and differential treatment provisions call for consideration of needs of developing countries when preparing and implementing SPS measures. Longer time frames for compliance on products of interest to developing countries. (This consideration in the agreements is however, hardly ever applied even though the fish industry in most African countries play an important role in their economies)
12 How to overcome the unfair trade barriers. (1) Capacity building Training of Trainers (TOT) on various fields relevant to trade and food safety, Building capacity ( human resources and equipment) for an effective quality and safety assurance systems Training in negotiations skills, Improvement of infrastructure, especially the cold chain. Establishment of accredited testing and referral laboratories, Building of good and credible scientific database, through regular sampling and analysis of samples, to counter any false claims. Development of bankable project proposals to help in accessing financial resources. Participation in standard setting committees
13 How to Overcome the Unfair Trade Financial resources Barriers. (2) Establish a sustainable funding mechanism; Mobilisation of funds from governments and development partners, Policies Development of sound policies and strategies for food safety and quality. Development of an effective and relevant legal framework to facilitate good hygiene practices. Co ordination and harmonisation of important requirements Given the complexity of SPS issues and other requirements by importing countries, harmonization or equivalent standards and not sameness would be the best option.
14 Other Challenges Fish Inspection and Quality Control Systems to meet importing countries requirements Frequent changes in the importing countries requirements; Compliance in new food laws and requirements of importing countries e.g. the new EU Regulation 178/2002, which has hharmonized hygiene requirements currently scattered over 17 EU Regulations and three Directives. Product and ecosystems Certification Origin; The marketing of fish requires that the country of origin of the marketed fish guarantee its quality and safety. Eco-labelling; Though its noble objective is to encourage sustainable fisheries eco-labelling can unintentionally impede trade from developing countries whose small scale fisheries are not certified
15 Other Challenges Traceability This is another phenomenon that the developing countries have to comply with, though ill equipped. Rapid Alert System for Food and Feed (RASFF) The European Commission publishes weekly alert and information notification. Though this is meant to protect consumers and advise them on choices it also impacts negatively on the developing countries fish exports. Precautionary Principle: This principle is meant to guide decision makers and risk managers and although the regulation stipulates that such decision must comply with the principles of non-discrimination, it opens avenues for application of unfair trade barriers.
16 Effects of Global Trade Liberalization Advantages Trade Liberalization has affected fisheries sub-sector positively. The East African fish products can compete with any other fish products globally for international markets with respect to quality and safety. Economic empowerment for fishers. Better prices are realised by fishers due to high demand for fish as raw material Development of auxiliary activities, such as net making, boat building, fish transportation Disadvantages Uncertainty and vulnerability of the export market and therefore income uncertainty for small scale fishers Shortage of fish for domestic consumption Overexploitation of natural fishery resources
17 The East African Community (EAC) States Perspective The Fish Industry in East Africa Fish earns the three countries substantial foreign exchange; US$ 55 million for Kenya, US$ 85 million for Uganda and over US$ 100 million for Tanzania. The fisheries sub-sector contributes about 3% to the GDPs of Uganda and Tanzania and about 0.4% to Kenya s s GDP.
18 Map of East Africa
19 Fisheries Resources in East Africa Lake Victoria is the major economic fisheries resource of the three countries, from which the world traded fish commodity (Nile perch) is harvested. international markets. The marine fisheries are under-exploited by both Tanzania and Kenya. Most of tuna resources are exploited and processed by Distant Waters Fishing Nations. Kenya processes and exports tuna loins. There is no other established land-based industry for tuna, despite its abundance in both Kenyan and Tanzanian EEZs.
20 The Nile Perch Industry The Nile perch is an exotic fish introduced into the L. Victoria in the 1960s and again early 1970s. The Nile perch fishery has gained so much economic importance in the past 10 years that it is now the most important fish export commodity in the East African region. Nile perch accounts for about 53% of the total fish production in Kenya and over 80% of Kenyan fish exports. It provides direct employment to over 200,000 Kenyans.
21 Fish Marketing The East African countries have been able to penetrate the international market for fishery products and compete well in a liberalized economy because of their advancement in implementation of fish quality and safety standards, Fish exports which are mainly Nile-perch- based products, earn the three countries approximately US $ 350 million in Foreign exchange. There is huge fisheries unexploited potential in the Kenyan and Tanzanian EEZs. EEZ resources are currently exploited by Distant Waters Fishing Nations (DWFN), without commensurate benefits to these countries
22 The Nile Perch
23 Nile perch Exports Products Nile perch fillet Nile perch loins
24 Nile perch Exports Products Fish Maws Nile Perch Steaks
25 Nile perch Byproducts Nile Perch Skins for high quality leather
26 Other Fish Export Products Octopus Tilapia Shrimps Tuna ----
27 Emerging Challenges Value Chain Reduction: : There is need to bridge the gap between FOB value of fish from developing countries and retail prices. Fisheries sustainability challenge in WIOMER IUU fishing Bycatch and discards Data collection (observer programs) Fishing Access Agreements that don t t take into account sustainable yields of migratory or straddling stocks accessible to them, the UNCLOS provisions (e.g. the EU FPAs) Food miles
28 Recent Developments Trade Mark: : The Nile perch is now registered as L. Victoria Perch through LVFO. Harmonisation of Fish Inspection and Quality Assurance Standards and Certification in EA as proactive measure to safeguard and acquire regional and international markets for its fish and fish products. Ecolabelling processes have been initiated for Nile perch and also marine fisheries in both Kenya and Tanzania, through MSC and WWF assistance.
29 Recent Developments EU 4 Pillars of Combating IUU fishing; The EU, in November 2007 set out four pillar measures it proposes to use to combat IUU fishing: Closing the EU market to illegal fish products by introducing a system of port state control. (The IOTC supports this strategy and expects its member states to collectively and individually implement this). Establishment of a European blacklists of IUU vessels and of states which turn a blind eye on IUU activities. Deterrent sanctions: against IUU activities in the EU waters and against EU operators engaged in IUU activities anywhere in the world. Enhancing co-operation against illegal fishing at both regional and international levels. Note: The first pillar would be very effective considering that EU is one of the leading fishing entities and largest market of fisheries products in the world.
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