Ragnar Arnason: A Review of International Experiences with ITQs

1
Ragnar Arnason A Review of International
Experiences with ITQs

• Background information
• United States is the 5th largest fishing
  nation.
• Basic fisheries management law in US is
  Magnuson Stevens Fishery and management
  act. (8 regional mgt. councils).
• ITQs established in 4 fisheries in 1990s
  with some degree of success, two more proposed
  in late 1990s, blocked by congress
• Currently only three ITQ managed fisheries
  in USA.
• Three fisheries are (1) Ocean quahog and surf
  clams fisheries
• (2) Atlantic
  wreckfish fishery
• (3) North Pacific Halibut/Sablefish
  fisheries

2

• Discussion of (1) Ocean quahog and surf clams
  fisheries.
• Initial allocation based on historical catch
  record
• Ownership of a vessel is not a requirement for
  holding a quota
• ITQs are freely tradable, anyone can hold ITQ, no
  upper limits on size of ownership except to the
  extent it may violate US Antitrust Laws.
• Substantial trade in quotas gt in first two
  years number of vessels reduced from 128 to 59,
  and then in next few years down to 35.
• Following intro of ITQ, enforcement costs
  plummeted. A lot of detailed conservation
  regulations became redundant, could be scrapped.

3

• Discussion of (2) Atlantic Wreckfish fishery.
• ½ of initial allocation based on vessel owner
  catch record
• ½ divided equally to all that had a history of
  participation in fishery.
• ITQs are freely tradable
• Substantial trade in quotas gt vessels reduced
  from 90 to 40 in first two years, and in next few
  years down to 9.
• Cost of enforcement reduced under ITQ. Coupons
  followed the landed fish through purchasing
  chain, thus making it possible to verify landing
  receipts.
• Question What about the fact that only 1/10 the
  vessels remain? Author did not mention this.

4

• Discussion of (3) North Pacific
  Halibut/Sablefish fisheries.
• Initial allocation only to vessel owners and
  lessors that had landings in at least one of the
  years 88-90.
• Quota associated with a vessel. Owner has to be
  on vessel when quota is caught.
  Transferability restricted to the same vessel
  class.
• Question When above restrictions diminish value
  of quotas, whos interest do they serve?
• ITQ trade/holdings subject to a number of
  restrictions that are constantly evolving.
• Cost of enforcement decreased. Everyone gets a
  debit card.

5

• Summary Anecdotal evidence of increased
  compliance and increased resource stewardship
  under the three ITQ systems.
• e.g. Fisherman voluntarily removed bottom
  longlines known to damage corals from their
  arsenal.
• Question Why does the US only have three ITQ
  managed fisheries?