Challenges for world fish trade by Helga Josupeit Fishery Industry Officer Rome, August 2009

Outline n Production n Trade n Recent developments in commodity trade n main issues for international fish trade

Outline n Production n Trade n Recent developments in commodity trade n main issues for international fish trade

Global fish production

Global fish production – by country

Capture fisheries production

Aquaculture production

Outline n Production n Trade n Recent developments in commodity trade n main issues for international fish trade

Fish exports

Russian exports versus total exports

Fish Exports in Value

Fish imports

Russian imports versus total imports

Russian fish trade

Outline n Production n Trade n Recent developments in commodity trade n main issues for international fish trade

SHRIMP n shrimp is the most important commodity traded worldwide, accounting for about 16% of total export value (of fishery products) n developing countries main source of supply n aquaculture very important n economic strongly felt by trade n low shrimp prices due to economic crisis

Tuna n tuna is the only concentrated industry among fisheries industry n share in total trade declining (8% at present) n in the press for resource management concerns and for mercury content n impact of economic crisis not felt

Groundfish n very traditional and well established industry n a lot of processing done in China n resource under stress for many species n however, cod resource returned in Barents Sea and in Atlantic off Canada n impact of economic crisis important

Cephalopods n very few consuming countries n important industry in a handful of countries n resource difficult to assess n prices up for squid, due to extremely low catch in 2009, but economic crisis put a brake to substantial price hikes

Fishmeal n Fishmeal production down in 2008 and early 2009 n El Niño year likely, which will lead to lower fishmeal production in 2010

Fish Oil n Fish oil prices follow fuel prices n Less fish oil in 2009

Tilapia n strong growth rate n China dominates trade n No trade in EU n USA strong market

Pangasius n Viet Nam main producer n Trade growing very strongly n Russia major importer n problems of early 2009 resolved

Salmon n expansion of production will come to an end in 2009, due to disease problems in Chile n aquaculture production extremely important n prices expected to go up

Outline n Production n Trade n Recent developments in commodity trade n main issues for international fish trade

Tariffs n Tariffs on fish reduced over time n Today: average tariff 4.5 % on fish imports by developed countries n Remaining problem 1: tariff escalation for processed products n Remaining problem 2: tariff peaks on some species n Remaining problem 3: less tariffs, more non-tariff barriers, formal and informal n For some countries: preference erosion n Discussions on formulas for reduction

n As import duties on fish in general have been much reduced, remaining barriers often relate to quality and safety. Therefore: the following WTO agreements are extremely important for fish products: n Technical Barriers to Trade (TBT n Sanitary and Phytosanitary Measures (SPS) n (these are not up for discussion on the Doha agenda) Non Tariff Barriers

Sanitary Regulation n HACCP-based fish safety and quality systems n improved safety and quality of fish and fishery products offered on the international markets n More transparency and harmonization among trading partners n integrated approach to safety and quality, taking into account the entire fish value chain n risk-based systems in importing economies

Labelling requirements n If countries wish to export to the European Union (EU) or to the USA, they must comply with certain import requirements; n traceability and n product labelling requirements

World Trade Organization n 153 members n All major fishery countries are members –except: Russian Federation n WTO Agreements regulate all trade between members

WTO and Fishery Specific issues n Fish is NOT classified as an agricultural product but as an industrial product n Fish NOT covered by Agreement on Agriculture n Fish trade treated as trade in industrial goods n Therefore: n Fish trade will benefit from general liberalization of trade and reduction of import duties

Certification Schemes n Environmental certification examines the level of sustainability of fisheries n Social certification examines the social provenance of products n Brands/branding

Environmental certification n Marine Stewardship Council (MSC) n Friends of the Sea (FoS) n Naturland n Aquaculture Certification Council (ACC)

Conclusions n Capture fish production is likely to decline n Aquaculture production is likely to grow further, though at lower path n International trade is impacted by economic crisis, especially high end products have problems

Conclusions n Russia is an important importer of fishery products, especially of pangasius and shrimp n Tariffs and non tariff barriers are a challenge for international trade, n WTO negotiations can help to overcome some of these. n Free Trade Agreements important