Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
60,000 mt) were insufficient to meet demand to support marked expansion in processing capacity.
There has been an increase in AW catch since 2008, to almost 100,000 mt in 2009, but with the
advent of the global sourcing derogation and with PNG’s total processing volume remaining stable, it
has not been necessary to fully utilize this increase in PNG processing plants. The AW catch
decreased in 2010, despite the record catch in PNG waters.
Following derogation from the RoO (post March 2008), fish could potentially be obtained from a
wider range of vessels (i.e. any vessels irrespective of vessel flag/ownership or fishing area).
However, in practice, since vessels are also required to be SPS-compliant to access EU markets, this
requirement may have initially served as a constraint, as many purse seine vessels operating in
WCPO waters did not have SPS certificates. A comparison undertaken in March 2010 between the
number of purse seiners on the FFA Regional Vessel Register and the number of vessels on both the
vessel register and the DG SANCO list, found that only 39% of vessels were SPS compliant. Only
three fleets were in a position to supply significant quantities of EU-compliant fish for processing and
export to the EU market – Philippines (15/18 vessels), Korea (26/27) and Taiwan (17/33). Smaller
volumes were also potentially available from China (3/12), Ecuador (7/7), El Salvador (2/2), Spain
(4/4) and New Zealand (2/4). 229 Japan (1/36), USA (5/37) and Vanuatu (0/19, with no SPS or IUU CA)
were not in a position to supply significant amounts of raw materials for the EU market. Central to
estimating how much fish would actually be available to supply EU markets would be an
understanding of vessels’ existing supply contracts/arrangements with trading firms and processing
firms, including own plants for those vessels belonging to vertically integrated companies with tuna
processing interests (refer to Section 6 for further discussion).
An update of this analysis (October 2011) is presented in Table 5.7, as well as 2010 catch data and
volumes/destinations of fish for processing. It is clear that there has been a marked increase in the
number of vessels on DG SANCO lists (i.e. an additional 48 vessels) and, in turn, the volume of SPScompliant
fish potentially available for processing (Table 5.7). Over 50% of the 263 purse seine
vessels listed in the FFA Regional Vessel Register are now on DG SANCO lists compared to 39% in
2010. Apart from the more complete listing of Philippine vessels on the FFA register, the biggest
change is seen in Japanese vessels, with 26/36 vessels now listed, compared to only one vessel in
2010.
As noted above, it is unknown what volume of fish caught by these vessels might be available to PNG
processors in light of existing supply contracts and arrangements, but a rough proportional estimate
from Table 5.7 suggests that as much as 760,000 mt of compliant fish was potentially available from
the 2010 purse seine production. Countries with the largest quantities of SPS-compliant fish at this
time include Japan, Korea, Taiwan and PNG/Philippines. The Japanese catch is largely committed to
domestic use (canning, katsuobushi), with small (but increasing) increasing volumes sent to Thailand
230
(~20,000 mt). Much of the Korean catch (277,000 mt in 2010) is currently supplied to its own
domestic canneries (120,000 mt), and to Thailand (90,000 mt), while Taiwan is the largest supplier to
Thailand of all fleets operating in the WCPO (198,000 mt, accounting for nearly all of its production).
The catch of Philippines domestic vessels mostly goes to its own canneries. PNG-based Philippines
and Philippines distant water vessels fishing in PNG supply processing operations in both Philippines
and PNG.
Indonesian catch is not included in the table, since Indonesian vessels are not required to be on the
FFA RVR. However, it should be noted that Indonesia is a major WCPO producer and existing
229 Oceanic Développement 2010.
230 Hamilton et al. 2011.
Linpico s.a.r.l. Page 117