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

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
Pacific States, in order to create local employment (in particular for women) and income. It takes
into account the specific circumstances of the Pacific region, including the limited fishing capacity of
the Pacific States' fishing fleet, the historically limited on-land processing capacity, the limited supply
of wholly-obtained fish to meet processing demand, and the assessed low risk of destabilizing EU
markets with large inflows of fishery products from the Pacific States. Furthermore, the derogation
shall apply without prejudice to sanitary and phytosanitary measures in force in the EU and
measures to combat illegal, unreported and unregulated (IUU) fishing activities in the region. The
special origin provisions will operate within the framework of conservation and management
measures established by the Regional Fisheries Management Organisations with the aim of ensuring
long term sustainability of fish stocks. The sustainable management of fishery stocks is also a major
pillar of the EU's strategy for the Pacific region.
Currently, PNG is the only country which can benefit from this exception. Fiji, the other fish
processing country in the region, has not yet provided the notifications foreseen by the Market
Access Regulation.
PNG has a fish processing industry, which is relatively important to the country's economic
development (the contribution of the fisheries sector to PNG's GDP has been estimated at 1,4% 347 ),
but has not developed a national fleet. It therefore relies, to a major extent, on raw material
supplies from third countries' vessels operating in PNG waters, PNG Exclusive Economic Zone and in
the Western and Central Pacific more in general. Indeed, there are a number of foreign fishing
vessels that are chartered and locally based in PNG and operating in PNG archipelagic and territorial
waters. Furthermore, a significant number of foreign fishing vessels are licensed to fish in the PNG
Exclusive Economic Zone. According to the Western and Central Pacific Fisheries Commission's
Record of Fishing Vessels, there are very few purse seiners declared as flying the PNG flag 348 .
Therefore, without the said derogation, PNG catches made in the area outside the archipelagic and
territorial waters and landed in PNG would not be able to comply with the standard EU rules of
origin for fish and fishery products and thus could not benefit from the trade preferences granted in
the framework of the Interim Partnership Agreement .
In order to ensure correct implementation of the derogation, the EU and PACP have agreed on
various provisions regarding administrative cooperation and mutual assistance. A consultation
mechanism, following the preparation of a specific report on the use of the derogation provisions,
will focus on the development effects of the special rules of origin, on the effective conservation and
sustainable management of the resources, and on effective application of EU health and IUU rules in
the region. Furthermore, a Trade Committee and its sub-committees composed of representatives
of the European Union and the Pacific ACP Parties that are signatories of the interim EPA, will
constitute the bilateral framework to deal with all issues relating to the iEPA.
A report on the implementation of the interim EPA must be drawn up no later than three years after
PNG's notification to the EU of the use of the derogation, i.e. in 2011. This derogation was included
347 PNG Country Strategy Paper 2008-2013. Annex IV.
348 According to PNG 2010 report to WCPFC, a total of 227 vessels were active in the PNG waters in 2009. 32
were longline and handline vessels and 195 were purse-seine vessels. 9 of the 195 vessels were PNG flagged,
31 were PNG chartered and 155 were foreign vessels fishing under Access arrangements. 33 vessels currently
operate as chartered vessels or locally based foreign (LBF) vessels in PNG, under an arrangement to realise
domestic industry development. These vessels fish for the processing plants in PNG and they are supported by
some form of incentive by the Government of PNG. About half the number of vessels, mainly Philippine flag,
fish principally in PNG waters while the other half, mainly Vanuatu flagged fish widely throughout the PNA
waters under the FSM licensing arrangement.
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