FISHERIES SUBSIDY AND THE ROLE FISHERIES SUBSIDY AND THE ROLE OF REGIONAL FISHERIES OF REGIONAL FISHERIES

MANAGEMENT ORGANISATIONS: MANAGEMENT ORGANISATIONS: THE CARIBBEAN EXPERIENCETHE CARIBBEAN EXPERIENCE

BY

Milton Haughton

CRFM Secretariat

Belize City, Belize

STRETEGICALLY IMPORTANT STRETEGICALLY IMPORTANT SECTORSECTOR

1. Employment: 130,000 - 140,0002. Exports: US $150 million per year 3. Entry into fisheries is growing.4. Production 123,366 MT - a major contributor to food

security.5. Value approximately US$500 million per year5. Up to 8% of GDP in some countries.6. Opportunities socio-economically disadvantaged i.e. the

least educated, rural poor and women.7. Major source of protein/minerals especially in rural

communities, which have higher rates of poverty

CARICOM COUNTRIES

PACIFICOCEAN

ATLANTICOCEAN

GULF OFMEXICO

CARIBBEANSEA

80oW 70

oW 60

oW

30oN

20oN

10oN

90oW100

oW

Hypothetical EEZ

Typical Caribbean Fishing Boats DOMINICA ST.VINCENT

A growing sector with potential For making significantly greater

Contribution to economic development – if appropriate

Policy framework and incentives provided

Shrimp farm Belize

Conch farm TCI

Production of Fish & Most important types of meats in the Caribbean(x 1000 MT) - Source FAO

050

100150200250300350400450

Sheep andGoat Meat

Pigmeat Beef andBuffaloMeat

Total FishCatch

PoultryMeat

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000 Other known spp groups (3.7%)

Miscellaneous molluscs (1.4%)

Miscellaneous fish (60.5%)

Sharks & rays (0.7%)

Reef fish (5.3%)

Large pelagics (oceanic) (1.6%)

Large pelagics (coastal) (3.8%)

Jacks, mullets etc (3.3%)

Herrings, sardines etc (0.7%)

Flyingfishes (2.9%)

Shrimps & prawns (9.0%)

Conchs (1.5%)

Lobsters (5.7%)

PRODUCTION, EXPORTS, IMPORTS

0

20

40

60AN

UBA

HBD

OS BZE

DOM

DOM.R

EP GRN GUY

HAITI JAM

MONT SKN SLU SV

GSU

R TT

X 10

00 M

T

Production (mt.)Exports (mt.)Imports (mt.)

EXPORTS & IMPORTS

05

10

152025

X 10

00 M

TExports (mt.)

Imports (mt.)

FISHERIES MANAGEMENTFISHERIES MANAGEMENT

1. Some commercially important species and species groups are reported to be either fully developed or over-exploited. These include conch, lobsters, shrimp, shallow shelf reef-fishes and some of the large pelagic species which are managed by ICCAT. 2. Some species are under-utilized and not making optimum contribution to the socio-economic development of the countries. These include some regional offshore pelagic fishes, squids, deep-slope fishes and some coastal pelagic species.

FISHERIES MANAGEMENTFISHERIES MANAGEMENT1. The lack of effective management is regarded as

the main reason for IUU fishing, over-fishing and degradation of essential habitats and ecosystems.

2. The capacity for effective fisheries management varies significantly between the different countries of the Wider Caribbean region.

3. There are significant institutional and human capacities in some countries for assessing, monitoring and managing fisheries, while in others fisheries are unmanaged. Management -greatest challenge to sustainable utilization and conservation of fisheries.

FISHERIES MANAGEMENTFISHERIES MANAGEMENT

1. We are committed to sustainable development of fisheries and aquaculture for the benefit of the people of the region, in accordance with international Agreements promoting sustainable utilization of coastal and marine resources

2. We support the current initiatives to clarify and improve understanding of subsidies and their relationship to over-exploitation of fisheries and trade distortion, and consequently improved disciplines on subsidies in the fisheries sector

Fisheries Management - Caribbean

Main fisheries organizations in the Caribbean

• FAO/WECAFC

• CRFM

Others regional organizations/Institutions

• UWI, OECS, UNEP RCU

• NGO - CCA, TNC,CANARI

• CNRM – Trade Negotiation

THE CARIBBEAN REGIONAL FISHERIES MECHANISM (CRFM)

• LEGAL Agreement signed in Feb 2002.

• Official launching of CRFM March 2003

• Headquarters in Belize City

• CRFM Secretariat - Replaces CFU/CFRAMP

CFRAMPCFRAMP19921992

CRFMCRFM20022002

OBJECTIVES OF CRFM

• the efficient management and sustainable development of marine and other aquatic resources within the jurisdictions of Member States;

• the promotion and establishment of co-operative arrangements among interested States for the efficient management of shared, straddling or highly migratory marine and other aquatic resources;

• the provision of technical advisory and consultative services to fisheries divisions of Member States in the development, management and conservation of their marine and other aquatic resources.

Main Areas of Work

• Fisheries Research

• Capacity building/Training

• Improving MCS/elimination of IUU Fishing

• Policy support

• Fisheries development

• Fisheries management (diversification/under utilized species)

Regional StudyTo improve understanding of the economic, environmental and social effects of trade liberalization and trade-related policies, including fisheries subsidies, and to recommend trade policy reforms in order to strengthen sustainable fisheries development

With respect to subsidies, the consultant shall:• identify and document the nature and extent of subsidies

and other forms of economic incentives provided by governments to the fisheries sector

• identify and document the nature and magnitude of the impact of subsidies on sustainability of the fishery resources, including any relationship that may exist between subsidies and over-capacity and over-fishng.

• identify and document the nature and magnitude of the impact of subsidies on trade in fish and fish products

FISHERIES SUBSIDYFISHERIES SUBSIDY

1. The most important issue in the Caribbean is the lack of data, information regarding the nature, extent and impact of subsidies on the fisheries

2. A recent issue for us with respect to fisheries

3. Impossible at this time to determine the magnitude of subsidies and whether or not they are having any negative environmental, economic and social impact on the fisheries.

4. We are however very interested in improving understanding of the subject.

FISHERIES SUBSIDYFISHERIES SUBSIDY

1. If we use a broad definition of subsidy, then several CARICOM Member States and Associate Member States are providing some sort of subsidy to the fisheries.

2. Countries provide direct or indirect subsidies to the fisheries sector in the form of incentives aimed at stimulating growth and development of fisheries and aquaculture primarily by reducing the cost inputs.

3. These have typically included the provision of subsidized fuel, duty concessions on the purchase of fishing gear and equipment including fishing boats and engines, the provision of subsidized loans to fishermen through special credit, tax and import duty exemptions for aquaculture

FISHERIES SUBSIDYFISHERIES SUBSIDY

• Government subsidies to the fisheries sector have been substantially reduced over the past 2 decades and are generally considered to be negligible in the Caribbean. This is largely due to the structural adjustment policies adopted by the governments and the fact that financial resources are just not available to provide significant support to the fisheries sector.

• The actual situation vary from country to country

FISHERIES SUBSIDYFISHERIES SUBSIDY

1. We must highlight the special situation of SIDS and developing states of the Caribbean, and their need for special and differential treatment with regard to future fisheries subsidies disciplines arising from their vulnerabilities and inherent economic disadvantages including limited economic base.

2. While this has been recognized at several international foranot much has been done to improve understanding of the situation and develop strategies to deal with the issue.

FISHERIES SUBSIDYFISHERIES SUBSIDY

1. More should be done to provide Caribbean countries and the small island developing states with technical assistance in natural resource conservation and management through the various international environmental organizations in the fisheries sector.

2. Support is needed to improve the current knowledge on what environmental, economic and social impact subsidies are having and by what mechanisms these effects are created.

CONCLUSION

CARICOM Countries are dependent on fisheries for food security and socio-economic development. Long-term sustainable benefits will only be possible if there is improved management based on knowledge of the resource systems, the needs and perspectives of the stakeholders and the economic factors influencing the state of the resource including the nature, extent and impact of subsidies. We are committed to working with interested parties in improving understanding of the environmental, economic and social impacts of subsidies and improving WTO disciplines on fisheries subsidies that are trade distorting and/or environmentally damaging. .