Table of Contents

  • OECD countries reached 22.8 million tonnes in 2005, accounting for around 23% of total world marine capture fisheries production (Figure I.1). However, OECD production continued its long term downward trend which has seen production decline by an average 3% a year from a decade ago. In 2005, the value of OECD marine capture production totalled USD 31 billion. Declines in production have mostly occurred in a number of EU countries, Japan and the United States (Figure I.2). Denmark, Greece and Japan suffered the largest decreases in marine capture production while Canada, Australia and New Zealand all raised their tonnages by an average of 1% or more per year between 1995 and 2005. Japan, the United States, Norway and Korea are the largest marine fisheries producers amongst OECD countries, accounting for 59% of total OECD production (Figure I.3).

  • This chapter examines the potential benefits from liberalising foreign direct investment in the fisheries sectors of OECD countries. Foreign direct investment (FDI) is defined as an activity in which an investor resident in one country obtains a lasting interest in, and an influence on the operation of, an entity in another country. The analysis reveals that there are significant restrictions on inward FDI to the fish harvesting sectors of most OECD countries. This stands in stark contrast to most other economic sectors in OECD countries where barriers to FDI have fallen significantly over the past few decades and where FDI restrictions are now generally low. In the meantime, restrictions on FDI to the fish processing sector are very low. The paper presents a cross-country comparison of FDI restrictiveness in the sector using an index of restrictiveness based on the type and degree of restrictions in place in each country.

  • Australia’s exclusive economic zone (EEZ) is the third-largest in the world. It covers approximately 10.3 million square kilometres; one-and-a-third times the area of Australia’s land mass. Australia’s commercial catch ranks approximately 60th in the world, representing 0.2% of world tonnage – although it is 2% by value. The volume and value of production in Australian fisheries have been affected recently by unfavourable movements in a number of important variables (including rising fuel prices and the appreciation of the Australian dollar).

    In 2004-05, Australia’s total exports of fisheries products were valued at AUD 1.54 billion with Japan and Hong Kong the main export markets for Australian edible fisheries exports. Australia imported AUD 1.17 billion of fisheries products in 2004-05; 82% (AUD 959 million) of the gross value of imports were edible fisheries products consisting of finfish, crustaceans and molluscs and in particular prawns, frozen finfish fillets and canned fish.
  • Commercial harvest of fish and seafood products has declined since 2003 from CAD 2.6 billion to CAD 1.9 billion in 2005. The overall volume of Canadian commercial landings has also declined from 1.11 million tonnes (mt) in 2003 to 1.02 mt in 2005. The decline in value is due in part to the appreciation of the Canadian dollar relative to the United States dollar, as the majority of Canadian fish and seafood products are exported to the United States.

    Canada uses a variety of instruments to manage fisheries. Those instruments deal with input (e.g. limited entry) or output (Individual Quota) controls and other various types of controls (e.g. by-catch limits, observer coverage). The Species at Risk Act (SARA) 2003 provides a framework for protecting species at risk under Federal jurisdiction. This has resulted in new management measures including by-catch measures or gear modifications to protect specific species.
  • The EU is a major world fishing power and the leading market for processed products and aquaculture. In 2005, the EC25 recorded a EUR 11.65 billion trade deficit in fishery products, with imports of EUR 14.09 billion and exports of EUR 2.44 billion. Norway is the primary supplier of fishery products to the Community (16.7% of the EC25 imports), while Japan is the number one consumer of EC25 exports (11.7%).

    The CFP reform, approved in December 2002, is a turning point in fisheries management. The new CFP takes more account of the impact of fisheries on the environment and favours sustainable development. The Reform included strict capacity management measures to ensure the steady decrease of the EU fleet. It also put an end to public aid for the renewal of the fishing fleet and for the export of capacity to third countries. The new capacity management regime has now been successfully running for more than three years.
  • In 2004, the total catch by Belgian vessels remained stable compared to 2003 at 23 682 mt (+0.2%). In 2005, the total amount of fish caught by Belgian vessels decreased by 9% to 21 545 mt. The total value of the catches in both Belgian and foreign ports amounted to EUR 86.1 million for 2004 (–5%) and EUR 86.3 million for 2005 (+0.2%).

    The number of fishing vessels in Belgium has steadily declined since the 1950s, from around 450 to 121 in 2005 with total power of 65 643 kw and gross tonnage of 22 686 GT. In order to reduce its fleet capacity and adapt to the EU plan for adjusting fishing capacity, the Flemish governement decided to decommission 10 more vessels in 2006.
  • The Czech Republic is a landlocked country with no sea fisheries but important aquaculture (pond-based) production of carp. Carp breeding is rooted in the history, culture and society of the Czech Republic and has proved highly profitable since the 15th century. The Czech Republic has over 24 000 ponds and tanks, mostly in southern Bohemia and covering a total of around 50 000 hectares.

    Pond aquaculture is subject to restrictions governing surface-water use. Output is contingent on rational harvesting levels, which in turn are based on external initiatives for maximum environmental protection. Most problems are caused by silting in the ponds as well as from other functions not directly related to production such as flood prevention, environmental protection and recreation.
  • Since the reform of the European Union’s Common Fisheries Policy (CFP – 2002) Danish fishing policy has also changed at the national level. A more individual quota management system, as well as a higher degree of ownership of fishing rights for individual fisherman, has been introduced. This reform follows similar regulatory reforms for pelagic and industrial fisheries.

    Overall, capacity continues to fall and it is expected that this trend will continue as regulatory reform it possible to concentrate fishing rights among fewer vessels. Studies on the assessment of overcapacity in the fishery have confirmed that there is still some overcapacity in the short term. The European Union policy on fleet and fleet capacity has already been implemented using a tight entry-exit system. This has been made more flexible by allowing individual transfers of capacity rights.
  • With landings totalling 631 000 tonnes in 2004 for a turnover of EUR 1.1 billion, France (including overseas départements – DOM) ranks third of European Union countries, with 11% of catches.

    The French fleet makes nearly two-thirds of its catches in the north-east Atlantic, the waters of which wash the European coastline. Thirty per cent are made in the tropical waters of the Atlantic and the Indian Ocean (tuna fish in particular), and 7% in the Mediterranean. Metropolitan landings fell sharply in terms of tonnage (–8%) and value (–10.4%) compared to 2003. The three main species remain, in terms of value, tuna, monkfish and sole.
  • In 2005, the German fisheries sector experienced increased landings and profits compared to previous years. Rapidly increasing fuel prices, however, had a negative impact on the overall result. With a degree of self-sufficiency of merely 25%, both the processing industry and consumers in Germany are still heavily dependent on imports from other EU member States and from third countries. Per capita fish consumption has stabilised at approximately 14 kg, thereby remaining below the global mean value established by FAO. The most important fish for consumption are Pollock, herring, tuna and salmon.

    In 2004, a total of 240 000 mt of fish and fishery products were landed by German fishing vessels. In 2005, this number rose to 253 000 mt while value increased from EUR 177 million to EUR 211 million. For many of the economically important fish species, a general tendency towards higher prices was reported. At the same time, fuel prices, which rose considerably in 2005, had a negative impact on operating results.
  • Greece has a national deficit of fish products of approximately 110 000mt. However, fresh products show a surplus of 41 000mt, due to the high share in exports of aquaculture products.

    Consumption of processed products has shown an increasing trend over the past few years. Per capita consumption for Greece reached 22.2 kg, 2.3 kg lower than the Community mean (EU15) which is 24.5 kg. A slight increase in the consumption of frozen products has occurred in the sector over the last few years.

    The main export markets for Greece are the EU countries (over half of the production of fish and shellfish species is directed to the markets of Italy, Spain, UK, Germany, etc.).
  • In 2004, landings of fish (quota and non-quota species) by Irish registered vessels totalled almost 308 425 metric tons (mt) with a total value of EUR 141.5 million. In 2005, total volume was 284 067 mt with a corresponding value of EUR 169 million.

    In 2005, Irish seafood exports amounted to nearly 200 000 mt valued at EUR 354 million. At this time the seafood sector faced many challenges particularly in respect of supply. This resulted in exports declining by a substantial 62 100 mt or 24% in volume from the 2004 figure. However the decline in value was only 7%.
  • Between 2004 and 2005, overall production in Italy has shown a trend reversal compared with previous years through increased production and stable revenues. This positive trend is due to changes in the aquaculture sector, as capture fisheries output has shown a steady decline as a result of fleet reductions following the EU’s permanent withdrawal programme.

    In addition to the reduction of fishing capacity largely involving very old and scarcely efficient vessels, a substantial decline in fishing activity has been registered and this proved to be the most influential variable which brought about significant drops in production levels. Decreases in fishing activity were partly due to the success of the national temporary withdrawal programme and partly due to the self-imposed “responsible” behaviour of fishermen who aimed to avoid excessive fishing pressure. Furthermore, the rise in fuel prices induced many fishermen to limit fishing days in order to reduce costs.
  • The Netherlands’ resource management and conservation policy is carried out in accordance with the Common Fisheries Policy of the European Union. The legal basis is the complete set of rules and regulations as agreed by the Council of Fisheries Ministers of the EU. In addition, the Dutch Fisheries Act of 1963 provides for regulations regarding inland fisheries. The Department of Agriculture, Nature and Food Quality is responsible for the formulation and implementation of policies for, among other areas, the sea fisheries, aquaculture, inland fisheries and recreational fisheries. Various management measures have been put into place to ensure equilibrium between fleet size and available resources. Some measures are of a technical nature and aimed at a capacity reduction, like decommissioning schemes, licensing systems and fishing gear measures. Another important measure aimed at reducing catches by means of quota regulations is a comanagement scheme which has now developed into an ITQ system.

  • Countries in southern Europe such as Portugal have small-scale fisheries with a large number of small vessels in communities all along the coast. In the case of Portugal, there are social, economic and territorial aspects to fishing that need to be preserved. The annual consumption of fish per head in 2004 was 45.3 kg, an increase of over 3.9% on 2003 (43.6 kg).

    Portugal’s trade balance for fishery products remains in the red. In 2004 it fell from EUR 672.6 million to EUR 669.7 million, but rose in 2005 to EUR 713.6 million. 6.1% growth in 2005 from 2003 was due to an increase in imports. In the same time period, exports grew by 8.5%, from EUR 335 million to EUR 364 million.
  • The Slovak Republic is a land-locked country without marine fisher, fishing vessels or suitable waters for commercial inland fishing. The fisheries sector in the Slovak Republic therefore consists only of aquaculture and fish processing.

    A large part of aquaculture fish production is as spawn material for restocking purposes. Regular annual restocking is necessary to maintain an ecological balance and the biodiversity of original fish species as a limited self-reproduction of fish occurs in Slovak water bodies.
  • The publication of a White Paper on Fisheries in Spain in 2005, based on a description of the current status of fisheries and the fishing industry as a whole, has fuelled debate between central government, the Autonomous Communities and all fishery-related sectors. With the active involvement of NGOs, the debate has centred on identifying and diagnosing failures and problems in the fishing sector.

    All Spanish fishing vessels over 15 metres in length, together with all those operating in international waters or the waters of third countries, must carry on-board satellite monitoring systems. In 2005, the Fisheries Monitoring Centre, which reports to the General Secretariat for Sea Fishing, handled over 7 million position reports from 2 675 Spanish and 441 foreign vessels (in 2004 this was 5 057 423 position reports from 2 152 Spanish and 422 foreign vessels).
  • For some years now the fishing sector in Sweden has been declining. 2005 landings amounted to 248 000 mt valued at SEK 877 million, 50 000 mt and SEK 300 million less than five years earlier. The Baltic Sea is by far the most important fishing area, accounting for almost 60% of landings. In 2005, roughly half of those landings took place abroad (in Denmark in particular) where prices are higher. Herring, sprat and cod are the major species, albeit the variety of species caught is considerable and includes a number of freshwater fish.

    In public waters, the responsibility for management lies with the government and regional or local authorities. Normally, waters around the coast and in lakes are privately owned up to 300 meters from the shoreline, meaning that conservation and management rests with the owners. In lakes, many private water-owners have created management areas with uniform fishing rules.
  • In 2005, UK Fisheries Administrations initiated the Quota Management Change Programme. The aim of the programme is to deliver the benefits of individual quota holdings and transferability, in particular increased certainty about individual fishing rights and improved transparency in quota trading. It is due to report after three years.

    In September 2005, UK Fishery Departments introduced a scheme of registration for buyers and sellers of first sale fish and designation of fish auction sites. Cross checking these sales notes with landings data will improve the monitoring and control of landings of fish taken from European Community and other waters, and ensure that such landings are properly recorded and capable of verification. The measures will also satisfy consumers and those involved in secondary processing or distribution of fish regarding the provenance of fish and that it has been legitimately caught.
  • The most important Icelandic fishery by far is the groundfish fishery and the most important species are cod, haddock, redfish, Greenland halibut and saithe. In recent years, the average yield from groundfish fisheries has been just under 500 000 mt annually, representing 70-75% of total landed value. Pelagic fisheries (capelin, Icelandic and Atlanto- Scandian herring and more recently blue whiting), are by far the largest in terms of volume with almost 1.1 million mt. However, most of these pelagic catches serve as input into relatively low value reduction (fishmeal and fish oil) processes; catches of pelagic fish have been decreasing in recent years. Crustaceans and mollusks e.g. shrimp, Norway lobster, scallops and ocean quahog, account for a small volume of landings and have been decreasing considerably in recent years. The total first-hand value of Icelandic catches has been steady between 2003 and 2005 at around ISK 68 billion. In 2005, 1 449 active fishing vessels took part in the fishery.

  • Fisheries production (including marine fisheries, inland-water fisheries and aquaculture) has decreased in quantity since 1989. Production amounted to 5 775 794 tons in 2004, which decreased to 5 720 603 tons in 2005 (a fall of 1%). The value of fisheries production in 2003 was JPY 1 546 billion (around USD 13.33 billion). It increased slightly to JPY 1 565 billion (around USD 14.27 billion) in 2004.

    The number of fishers has been continuously decreasing and is now 26% lower than in 1994 (312 890). More precisely, the number of fishermen in 2004 was 230 730, 3% lower than 2003. Japanese male fishers over 65 years old accounted for 34% of the total male fisher population in 2002, 13% higher than ten years ago. The ageing of the working population over the past decade is remarkable.
  • Fishery production in 2004 was 2 519 000 metric tonnes (mt) valued at KRW4 730 billion (USD 4 113 million), an increase of 32 000 mt (1.3%) from 2 487 000 mt in 2003, due to increased production in mariculture.

    To address chronic overexploitation of marine fishery resources by over-capacity in coastal and offshore waters, a fleet reduction program known as the “General Buy-Back Program”, has been active since 1994.

    Moreover, another buy-back scheme, the “Buy-back Program by International Agreements”, was introduced by the “Special Act for Supporting Fishermen Affected by International Fishery Agreements” which entered into force on 7 September 1999, and aimed to compensate fishermen for losses resulting from international fishery agreements, including agreements with Japan and China. In accordance with this Act, the Korean government scrapped 1 328 fishing vessels between 1999 and 2002, for which KRW 866.4 billion (USD 753.3 million) was spent by 2004.
  • Fishing is a very important activity and contributes significantly to the national economic environment. Fishing is also an important food source for the Mexican population. Likewise, there are major input suppliers to the fishing industry that also generate economic growth. The fishing industry contributes significantly to foreign currency due to the high commercial value of product sales. At the fishing community level, fishing activities have become a fundamental income element for major population groups, as well as driving regional economic development.

    Mexico has about 11 500 km of shoreline, a 3 million square km Exclusive Economic Zone (EEZ) and over 2.9 million hectares of inland waters, including 1.6 million lagoons. It also is privileged in its natural endowment due to the surrounding oceanographic phenomena that enhance biodiversity, both in the sea and inland waters.
  • New Zealand’s seafood industry sustainably harvests approximately 750 000 metric tonnes (mt) greenweight (live weight) from wild fisheries and aquaculture each year. The value of this harvest ranges from NZD 1.2-1.5 billion per annum, of which the aquaculture industry contributes about NZD 200 million per annum. Seafood exports consistently rank as New Zealand’s fourth or fifth largest export earner. Domestic seafood sales are approximately NZD 150 million annually.

    The Ministry of Fisheries is responsible for managing New Zealand’s fisheries. It focuses on maximising the value New Zealanders obtain from the sustainable use of fisheries and protection of the aquatic environment. This goal sets the policy direction for fisheries management in New Zealand. The quota management system (QMS) provides for the management of commercial fisheries on the basis of Individual Transferable Quotas (ITQ). Restrictions are placed on the amount of quota that can be held by any one person, including their associates. These range from 10% for some species to 45% for others.
  • With a very long and protected coastline, the Norwegian fisheries and aquaculture sectors have some of the most productive fishing grounds among OECD countries. Capture fisheries produce 2.5 million metric tons with a total value at first hand of NOK 11.7 billion from a wide variety of species. Aquaculture production of Atlantic salmon and rainbow trout was an additional 645 000 tons in 2005, valued at NOK 13.4 billion.

    The Ministry of Fisheries and Coastal Affairs is responsible for the fisheries and aquaculture industries, ports and sea transport infrastructure. The administrative measures applied to limit fishing effort in Norwegian fisheries are licences and annual permits, combined with Individual Vessel Quotas (IVQ) . All commercial fishing by trawlers and purse seiners requires a license. Long-liners and coastal vessels are regulated through annual permits. Aggregated catch levels are controlled mainly through TACs, which are set annually and cover approximately 95% of the landed value of fish. Only active fishermen are permitted to own fishing vessels in Norway, but dispensations have been granted to allow some industrial corporations to vertically integrate into the catch sector.
  • Fisheries management at the national level is the responsibility of the Department of Fisheries of the Ministry of Agriculture and Rural Development. The Department of Fisheries directly supervises the work of the three Regional Sea Fisheries Inspectorates in Gdynia, Slupsk and Szczecin.

    Polish marine catches in 2005 totalled 136 300 metric tonnes (mt), a decrease of 37 300 mt (21.6%) over the previous year. This was the result of a decrease in Baltic Sea catches (19%). Of the species of fish and marine animals caught by Polish fisheries in 2005, sprat was the most common and comprised 54.5% of total catches.

    In 2005, an estimated 27 000 people were employed in the fisheries sector. This figure is lower by 1 300, in comparison with 2004. A loss of 900 jobs was seen in fishing companies, 100 in trade and 850 in the coastal fishery. There has been an increase of 600 jobs in the processing sector. Although there is no data regarding inland fisheries employment, it is estimated that 4 600 people work in this sector.
  • Turkish fisheries sector is in institutional, legal and structural transformation period and major steps have been taken regarding this issue. The most important reforms are; the amendment of law which is aimed to be completed in 2006 and successively the regulation which will be enforced, updating of the vessel registration system, the setting up of fisheries information system and vessel monitoring system.

    Fisheries production totalled 644 492 tons in 2004. Of which 505 497 tons (78%) was from marine origin, 45 585 tons (7%) was from freshwater origin and 94 010 tons (15%) came from aquaculture. In 2005, total production decreased to 544 773 tons, of which 380 381 tons (70%) was from marine, 46 115 tonnes (8%) was from inland fisheries and 118 277 tons (22%) came from aquaculture.
  • Commercial landings (edible and industrial) by US fishermen at ports in the 50 states were 4.6 million metric tons (mt) valued at USD 3.8 billion in 2004 – an increase of 261 000 metric tons (up 1%) and USD 305.8 million (up 9%) compared with 2003. Alaskan pollock, menhaden, Pacific salmon and cod remained the five most important species in terms of landings, while crab, shrimp, lobster and scallops remained highest in terms of value. Since 2000, revenue from commercial landings has increased to USD 145 million, representing a 4% increase in nominal terms but after adjusting for inflation, a 5% decrease in landed value.

    It is estimated that there are 25 000-27 000 commercial fishing vessels licensed to operate in the US EEZ. The National Marine Fisheries Service (NMFS) is currently developing a national permit database that will enable it to readily quantify the total number of Federally-permitted craft.
  • Fishing policy in Argentina, for the period 2004-05, was designed to meet the aim of strengthen resource conservation to cause the least possible damage to economic activity. This period was marked by a drop in catches of some of the major marine resources (i.e. squid Illex argentinus and shrimp Pleoticus muelleri) and prolonged conflicts with crews.

    Over the period analysed, total landings remained stable. Larger catches of Argentinean hake more than compensated for the decrease in squid and shrimp. Present landing levels, although stable, are lower than those reached during the last five years of the 1990s, when the amount of fishing effort applied had negative implications on the sustainability of some resources.
  • Chinese Taipei is the 20th top producer in the world. Historically, fisheries have played a significant role in the development of geographically disadvantaged regions in Chinese Taipei, as well as providing stability to society and food supply. Some 130 000 fishing households with a workforce of 340 000 fishers participate in the sector. In recent years, the production of fish has reached 1.5 million mt (metric tons), with a value of just under TWD 100 billion (around USD 3 billion). The aquaculture sector provides an additional 300 000 tons of fish valued at TWD 30 billion and its aquaculture technology, in particular, enjoys a worldwide reputation.

    The Chinese Taipei fishing industry is highly diversified and comprised principally of two sectors: a large-scale deep sea commercial fishery targeting tuna and squid in international and foreign waters, and a community-based costal and offshore fishery harvesting a wide range of species within the Chinese Taipei EEZ. Deep sea fishing plays a dominant role in Chinese Taipei. The deep sea long-distance fleet, targeting tuna and squid, harvests around 800 000 tons per annum, representing 58% of overall activity measured by landings. The Central and Western Pacific are principal hunting grounds for tuna while squid jigging takes place mainly in the South Western Atlantic, Western and Eastern Pacific Oceans. Some 71 foreign ports serve as principle ports for these activities. To manage issues of overcapacity, flags of convenience (FOC) and IUU fishing by the deep sea tuna fleet, a two year vessel buyback/scrapping program (2005-06) has reduced the active tuna fleet from 614 units to 454. This has been coupled with a prohibition to export tuna vessels built in Chinese Taipei. Also, authorities are working on equipping all deep sea vessels with vessel monitoring systems (VMS).
  • The total Russian marine catch in 2003 amounted to 3.3 million mt, about the same as in 2002. Most of the catch came from the Russian EEZ (approximately 64%), while 14% came from the 200 mile zones of foreign countries, 10% from the open ocean areas outside of 200 mile limits, 7% from inland waters and 5% from freshwater basins. This amount of catch is still well below historic levels of 7 million mt in 1991.

    In 2004, the Russian fleet was comprised of 3 073 vessels, of which there were 2 574 fishing vessels, 54 processing vessels, 406 freezer vessels and 39 other transport vessels. Of the 2 574 fishing vessels, 17% were large vessels (over 64 metres length overall (LOA)), 51% medium-sized (34-65 m LOA) and 32% were small vessels (24-34 metres LOA). At present, the fishing fleet is characterized by a significant number of physically worn-out and obsolete vessels. It is estimated that about 63% of total vessels are beyond the exploitation time norms for the vessel.
  • Most recent figures show the Thai marine catch to be 2.65 million mt in 2003, valued at USD 1.6 billion. 70% of this catch was sourced from the Gulf of Thailand while the Andaman Sea accounted for the remainder. The industry is characterized by both smallscale and large-scale or commercial fisheries. Demersal fish resources in coastal waters have been severely depleted and are mainly caught by otter-board trawls, pair trawls, beam trawls and push nets.

    Several factors may have contributed to over-fishing, notably increasing human population, increased pressure from Thai trawlers who lost access to foreign fishing grounds after neighbouring countries declared EEZs, developments in processing techniques for turning low-priced demersal fish into human food, increasing numbers of animal feed plants that utilise trash fish, and trash fish itself. Trash fish is currently around 60% of the total trawl catch. Between 18% and 32% of trash fish are juveniles of commercially important fish species.