International Fish Trade

1
International Fish Trade

• Grimur Valdimarsson, Director
• Fishery Industries Division
• FAO, Rome,Italy

2
Outline

• Regulatory Framework for Fish Trade
• Production
• Aquaculture versus Wild
• Developing versus Developed countries
• Trade
• Major commodities
• Developing versus Developed countries
• Growing trade of developing countries
• Trade flows

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Outline (cont.)

• WTO agreements
• DOHA discussions
• FISH INFOnetwork and the work of FAO in the field
  of market information
• Value Added fish products and changes in market
  structures
• Conclusions

4

• TRADE LIBERALIZATION
• was put at the heart of the global development
  agenda as laid down in Agenda 21 of the Earth
  Summit on Sustainable Development
• (Rio)
• in 1992

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The Earth Summit in Rio in 1992 (Agenda 21)

• promote sustainable development through trade
  liberalization
• create a system that is non- discriminatory,
  rule based, equitable, secure, transparent and
  predictable

6

• Hunger
• 840 million people still suffer from hunger
• (FAO)
• Unequal distribution of wealth
• Ten percent of the worlds population produces
  70 percent of its goods and services and receives
  70 percent of world income - an average of
  30.000 per person. At the other extreme, half of
  the worlds population lives on less than 2 a
  day
• Collier and Dollar (2001)

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The WTO (and its predecessor,GATT) has mainly
been concerned with ...

• lowering CUSTOM DUTIES (TARIFFS)
• but
• technical issues are becoming ever more
  important

8
During the 50 years of negotiations to lower
tariffs world trade has grown by 6 annually

• AGRICULTRUAL goods, such as meat, still carry
  some 70-80 tariffs whereas
• INDUSTRIAL goods, including FISH carry some
  4.5 tariffs

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Some production figures...
10
Fish Production (in MT)
FISHSTAT 2004
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Fish Production (in MT)
FISHSTAT 2004
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Fish Production (in MT)
FISHSTAT 2004
13
Some fish trade figures...
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International Fish Exports 2002(percentage by
value)
Total export value US 58 billion
FISHSTAT 2004
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International Fish Trade - 2002
FISHSTAT 2004
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Net exports of food items by developing countries
FISHSTAT and FAOSTAT 2004
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Fish Commodities - Export
FISHSTAT 2004
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Trade Flows 2002 (in million US)
Exports
3800
Developing
Developed
24600
5000
25000
Developed
Developing
Imports
Calculations based on COMEXT 2004
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MEAT AND SEAFOOD PRICE INDICES (100 1997-1999)
FISHSTAT and FAOSTAT 2004
20
The ratio of the first hand price to the retail
price
Blue Planet 2004
21
WTO Agreements
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WTO Agreements of relevance for fisheries

• Agreement on Sanitary and Phytosanitary Measures
  (SPS)
• Agreement on Technical Barriers to Trade (TBT)
• Agreement on Subsidies and Countervailing
  Measures
• Agreement on Import Licensing Procedures
• Agreement on Anti-Dumping
• Agreement on Rules of Origin
• Dispute Settlement

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Agreement on Sanitary and Phytosanitary issues
(SPS)...

• Right of Members to apply measures they deem
  necessary to protect human, animal and plant life
  and health
• Should not be a disguised restriction on
  international trade
• Protection levels should not be more trade
  restrictive than required to provide appropriate
  level of protection APLP

24
Agreement on Technical Barriers to Trade (TBT)...

• The Technical Barriers to Trade Agreement (TBT)
  ensures that members do not use technical
  regulations or standards as disguised measures to
  protect domestic industries from foreign
  competition.
• Labelling disputes
• Testing procedures

25
Some examples of tariffs and WTO agreements
issues..
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Tariff escalation for cod EU

• Cod fresh and frozen 15
• Cod fillets fresh and frozen 18
• Cod fillets dried, salted 20
• Cod dried, salted 13
• Cod fillets battered 25

TARIC 2004
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Tariff escalation for tuna EU

• EU tariffs are 18 for frozen whole tuna and 24
  for tuna loins and canned tuna
• But there are some special agreements..
• Asian Caribbean Pacific (ACP ) countries 0
  duty on all seafood products
• GPS-Drugs agreement set certain duty free quotas
  for canned tuna and tuna loins from Andean
  Community and Central America

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SPS agreement applied by EU antibiotics

• Detention of shrimp with antibiotics (mostly
  chloramphenicol) in EU
• China (mainland and Taiwan, province of China)
• Thailand
• Indonesia
• India
• Philippines
• Viet Nam
• Bangladesh
• and others

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Examples of TBT/SPS issues

• Country of origin labeling in USA (COOL)
• TEDs (Turtle excluding devices) for catching
  shrimp
• Tuna-dolphin issue. The certificiation that
  dolphins are not killed in fishing for tuna
• Trade description of scallops Saint-Jacques vs
  pétoncle
• Australia Banning imports of salmon from Canada
  due to possible fish disease agents
• Trade description of sardines Peru vs EU
• Sardinella pilchardus vs. Sardinops sagax

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WTO definition of dumping

• three methods to calculate a products normal
  value.
• The main one is based on the price in the
  exporters domestic market.
• the price charged by the exporter in another
  country,
• or a calculation based on the combination of the
  exporters production costs, other expenses and
  normal profit margins.

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Anti-dumping Shrimp USA

• Against countries selling at a price below in
  domestic (US) production prices
• Obvious difference between the US definition of
  dumping and the WTO definition
• Complaint likely to come soon

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Resulting US tariffs on shrimp...

• Countries affected
• Brazil up to 67.8
• Ecuador 6.08-9.35
• India 3.56-27.46
• Thailand 5.56-10.25
• China 27.9-113
• Viet Nam 4.1-25.8

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9th Round Doha Agenda The Development Round
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Market access for non-agricultural products
(including fish)

• GOAL OF THE DOHA ROUND
• Reduce or eliminate import tariffs
• Reduce tariff escalation (value-added)
• Protect special needs of developing countries
• Capacity building on negotiation issues

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Fish processing in developing countries

• LARGE POTENTIAL FOR EMPLOYMENT CREATION (NOT THE
  LEAST FOR WOMEN)
• TODAY, TARIFF ESCALATION HINDERS PRODUCTION OF
  VALUE-ADDED PRODUCTS

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Are fish exports bad for developing countries?
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Impact of Fish Trade on Food Security 11
countries 2002-2004

• Main Findings were
• international trade in fishery products has had a
  positive effect on food security through export
  earnings
• international trade has not had a detrimental
  effect on food security in the form of fish as
  food.
• sustainable resource management practices are a
  necessary condition for sustainable international
  trade.

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Helping developing countries with fish trade...
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FIN Magazines
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Price Reports and Market Analysis
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FAO GLOBEFISH Webpage
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Value addition- the future?
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Value Addition...
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Conclusion

• Fish production continues to grow
• Developing represent 70 of production (by
  volume)
• 38 of fish production enters international trade
  (by value)
• China is the main exporting country, overtaking
  Thailand in 2003.

48
Conclusion (cont.)

• Shrimp is the main commodity trade with 18 of
  total value.
• Net-export earnings are very important source of
  income for developing countries.
• Fish could be losing competitiveness when
  compared to other animal protein.
• Intra-developing countries is very limited at US
  5 billion