Ad Hoc Expert Group Meeting on Trade in Sustainable Fisheries

Distinguished delegates,

Ladies and Gentlemen,

Good afternoon. It is my pleasure to be here today and a conversation that is relevant in our pursuit of a better planet for all: trade and sustainable fisheries.

Today, 87% of the world's marine fish stocks are fully exploited, overexploited, or depleted. The level of fish stocks in 2015 represents only about half of total stocks of 1970 and, by 2050, they will only represent one third of 1970 levels.

We face a tragedy of commons for fish or, as the Economist called it, a "Tragedy of the High Seas." And it will only be compounded by climate change and oceanic pollution.

The growing problems of overfishing and stock depletion jeopardize not only global biodiversity, but also sustainable and inclusive development more broadly.

Let me tell you why.

Fish is critical to the livelihoods of populations in developing countries. More than 3.2 billion people live close to coastlines relying on the oceans for their livelihoods. And, about 350 million jobs are linked to fisheries, port management, and related activities. The FAO estimates that fisheries and aquaculture support the livelihoods of 10 to 12% of the world's population.

About 97% of the world's fishermen live in developing countries and fishing is a major source of income to them. In 2013, developing countries accounted for 56% of total fish exports.

So far, I have outlined the problem of overfishing. The pressing question in the context of our meeting is this: What is the role of trade in providing solutions to dwindling fish stocks?

On the one hand, the growing international trade in fish increases extractive pressure on an already scarce resource.

Exports of fish reached a record level of 136 billion USD in 2013 - a 5% rise over the previous year. This growth has been stimulated by population growth and facilitated by a downward trend in applied MFN or bilaterally agreed tariffs for fish and fish products¹ .

Tariffs on fish are generally low, especially in developed country markets, to facilitate imports for domestic demand. RTAs have also contributed to the general downward trend by reducing and in many cases phasing out tariffs.

But let us get clear on something: trade liberalization is not the root of the problem of overfishing and stock depletion.

Trade is a necessary condition for development, but not a sufficient one. To make trade contribute to environmental sustainability and inclusive growth, we need better rules and institutions.

We can start with three concrete steps in the area of trade:

1. addressing subsidies,
2. minimizing tariff escalation and other NTMs, and
3. forging regional agreements that create better links between fisheries and local economies.

First, we must address subsidies.

Given their potential distortive effects, fishing subsidies have been on the forefront of trade negotiations for many years.

Global fisheries subsidies have been estimated to be as high as USD $15 to $35 billion worldwide, of which USD $20 billion are capacity-enhancing subsidies².

Estimates indicate that reducing harmful fishing subsidies could result in economic gains of as much as USD $50 billion worldwide. A prohibition of such subsidies is critical.

Particularly harmful subsidies include: those affecting overfished fish species; subsidies provided to any vessel engaged in illegal, unreported, or unregulated (IUU) fishing; and subsidies for vessel construction or for fuel. These subsidies are not only bad economics. They are also bad for the environment and certainly not conducive to sustainable development.

Second, we must address tariff escalation and other NTMs that hamper development prospects. Tariff escalation can be found on certain tariff lines that cover processed fish products, mainly to protect domestic industry. Without addressing tariff escalation, developing country competitors may have a more difficult time moving up the value chain.

In this respect, NTMs, including special rules of origin, may also restrict market access. For example, according to the WTO, 58 Members have notified 529 SPS measures affecting fish products. Additionally, the TBT Measures database includes 74 regular notifications by 23 Members³.

Moreover, some nations have established unilateral schemes for fighting IUU. These initiatives are welcome, as IUU fishing entails losses estimated to range between USD $10 and USD $23 billion annually. However, some of the fishing nations that have had to put in place IUU preventive measures are finding these to be complex, burdensome, and costly to comply with. Small- and low-income countries are particularly affected.

Moving forward, such schemes need to be based on actual levels of IUU risk and the local level of development. They should also take into account the costs and benefits of additional monitoring and enforcement efforts by developing fishing nations.

A third way to harness trade for inclusive development is to design bilateral fishing agreements to maximize benefits for developing countries.

These agreements have provided financial benefits to developing countries by giving them access to the fleets of distant-water fishing nations. Such agreements thus benefit both parties. But an equitable sharing of these benefits is key. Links with local job creation and value addition are also necessary so these agreements are not simply a revenue source but also a tool for local development and fish stock conservation. It is also important that such agreements incorporate provisions to help improve the institutional capacity of developing countries, especially to monitor effectively fishing activities.

Ladies and Gentlemen,

This meeting is a good opportunity to discuss these three steps and further actions needed to preserve fish stocks and ensure sustainable harvests. The new 2030 development agenda, and particularly goal 14 and its targets, provide new opportunities to anchor these long-standing imperatives into our work.

Achieving the sustainability of our fish resources for those who depend on them most must be at the heart of our contributions. Some suggestions have been made in our background report. And I look forward to the proposals of other experts here today.

We can do much for fish conservation and trade but we have no luxury of time; time has run out, now we need concrete and strong actions to stop the depletion of fish.

With your contributions, I am optimistic that we can make progress towards this agenda.

Thank you very much.