COMMON FISHERIES POLICY

Treaty Provision

Agricultural products shall mean the products of the soil, of stock breeding and of fisheries

Features of Industry

• Supply highly inelastic in short run (due to specialised nature of labour and of capital)

• Price elasticity and income elasticity both very low

• Like farming subject to random shocks in supply

• Made up of a large no. of self employed producers

About .2% of work force (directly)

Over 1% of work force (indirectly)

• Of particular importance in some localities

REASONS FOR COMMON FISHERIES POLICY•  Many activities conducted across and beyond territorial waters of

individual states Fish no respecters of territorial waters of individual states

•  Technical developments (esp. in 60's)

• Large vessels with sonar and radar capabilities

• Nets of increased capacity

• Factory type shipping

• All this coupled with decline in fish stocks

• Changes in international law 1971 Declaration by Iceland of exclusive 50 ml limit 1974-76 United Nations Conference on Law of the Sea

Unilateral declarations of 200 ml. Zone - US, Canada and Norway  

EU FISHING INDUSTRY

•  The EU is the world’s 3rd largest fishing area after China and Peru

- however it is a net importer of fish - 1.6 ml. tons exported (1995) with 4.3 ml. tons imported  

• Though contributing generally less than 1% of GDP in most areas, highly important in areas where there are few alternatives  

• EU fishing fleet consists of 97,000 vessels which vary greatly in size and fishing capacity  

• Nos. of EU fishermen declining over the years

Between full-time and part-time fishermen there are now 260,000 employed in the EU  

• Aquaculture important – 1 ml. tons (1995) produced worth € 1.9bl. providing 35,000 full-time and 50,000 part-time jobs  

EVOLUTION OF POLICY

• 1960's - little progress; conflict as between aims of France and other member countries

• Tentative proposals for policy in 1966 • 1970's - basic foundation for policy agreed in June '70 with

intention of gaining equal access to territorial waters of incoming members

• Structural policy to conserve stocks • Size of nets, minimum size of fish to be caught, fishing

sessions etc • Quota arrangement for each species of fish (TAC) • Common marketing organisation i.e. guide prices for each

species of fish • Compromise arrangements reached by which concessions

would be ranted to incoming nations while details being finalised

AGREEMENT ON COMMON POLICY 1983

•  Equality of access to EU waters

• Derogation for renewable period of 10 years for 12 mile limit for in shore fishermen

• Common policy for conservation, technical measures, quotas and TAC's

• Agreements with non-community countries to be reinforced and extended

• Market support measures to be implemented

• Modernisation of fishery and aquaculture sector - 250 ml ECU's over 3 years

• Special provisions for coastal fishing

COMMON FISHERIES POLICY

Main features:

• Access to waters and conservation

- principle of non-discrimination; some exceptions

- conservation and management of stocks

- fixing TACs

- technical conservation measures

- inspecting and monitoring measures

- community inspection

- financial contributions

• Organisation of Markets

- marketing standards

- producer organisations

- pricing system

- limited compensation

- external trade policy

PROBLEMS

•  Deciding on level and allocation of TAC's

• Enforcement of Measures

• System of community inspectors

• Marketing supports far less than CAP

• Extension of Community to include Spain and Portugal (leading to almost doubling of fishing capacity)

• 10 year transitional arrangement to be renewed in 1995

BARGAINING

• Bargaining for TACs

- Ownership rights - based on territorial waters (suited Ireland and UK)

- Damage due to loss of traditional fishing grounds (due to non-

community EEZ's)

- Importance of linked processing industry

• Bargaining with non-community countries

Three Categories

- Possible Reciprocators - Iceland, Norway

- Countries with no interest in EU (US, Canada) but of possible benefit

to EU fishermen

- Countries outside EU (Eastern Europe) interested in gaining access

to EU waters, but unable to reciprocate

NEW POLICY 2003

Reforms of the EU Fishing Policy took place in 1992 and 2002. Thepresent policy dates from 1st January 2003

Main changes

- adoption of a long term approach to fishing. Bfore decisions were taken on an annual basis

- policies to deal with chronic over-capicity of fleets

- better applicationofthe rules

- greater involvement of fishermen and their organisations in making decisions

- action plan to improve stock evaluation in community and non -community waters

CFP AND IRELAND

Ireland has lost out badly

• less emphasis on fishing in Ireland (low consumption of fish)

• lack of development of linked industries

• partly price that must be paid for preferential treatment on CAP