reLAKSation 163.

Fishing for agreement: On June 6th 1981, Norway entered into a third party fishing agreement with the European Community. This agreement provided for joint management of seven ‘main joint stocks’ which straddle Norwegian and Community waters. An annual bilateral consultation fixed fishing quotas based on Total Allowable Catches and a balanced exchange of other stocks. The last consultation took place on January 24th of this year, which shared out the main joint stocks for cod, haddock, saithe, whiting, plaice, mackerel and herring. The total TAC was 889,031 tonnes of fish of which the Norwegian allocation was 297,667 tonnes and that of the EU, 591,364 tonnes. Norway also obtained 234,010 tonnes of various species from the Community zone in exchange for 239,670 tonnes for the Community from Norwegian waters. 

According to IntraFish, EU Fisheries Commissioner, Franz Fischler has suggested that early indications show that there must be a number of changes to this agreement for next year. He warns that this will make negotiations with Norway more difficult than in previous years. One of the reasons for this is that the latest scientific advice will indicate that significant reductions are necessary in certain fisheries, parts of which are usually transferred from the EU to Norway.

Mr Fischler is anxious that agreement will be reached before the end of the year so the EU fishermen operating in Norwegian waters can start to fish immediately in January 2005.

The EU third party fishing agreement with Norway is one of many that the EU has negotiated with other countries but it is also one of the most important according to the EU Fisheries Department. Such agreements with other nations have formed a central element of the common fisheries policy. They have provided vital access to fishing grounds for the Community’s fishing fleet. The importance of these agreements can be gauged from the fact that over one quarter of all fish caught by Community boats is taken from international waters or from those under the jurisdiction of non-EU countries. These agreements have accounted for about 40% of CFP expenditure.

Whilst these third party fishing agreements are often established as a joint venture between both parties, they also can work by an exchange of commercial concessions with fishing rights. This could have significant implication for opening up the free flow of Norwegian salmon exports to Europe.

Whilst the current agreement  with Norway enables EU fishermen to fish in its waters to relieve the pressure on EU fish stocks, the EU seems intent on curtailing supplies of Norwegian salmon even though they also significantly contribute to the easing of fishing pressure on other species. The European Commission is clearly happy to take fish from Norwegian waters, but appear equally determined to restrict supplies of salmon. This makes no sense. However, common sense was never ever part of this salmon dispute.

Norway is currently looking for a longer term agreement which will remove the constant threat of trade sanctions, but the problem could well be that any agreement is simply a compromise to satisfy the demands of a minority of Scottish producers. This would be a mistake as past experience has shown that compromise deals have not resolved the issues. Fritz-Harald Wenig has said in an interview with Fiskaren, that an MIP of Euro 2.85 with an import quota so high that it won’t have any practical significance for the Norwegian salmon industry. If these measures have no significance, then why bother with at all? The answer is that Mr Wenig is looking for a political compromise and as we have suggested, such a compromise will resolve nothing.  What the salmon industry needs is a solution that puts an end once and for all to all this unnecessary wrangling.

At the time of the 1996 dumping action, we, at Callander McDowell, suggested that Norway should bring their third party fishing agreement into the equation but they failed to do so. We again would suggest that Norway should consider linking salmon exports to their fishing agreement with the EU. This seems to be the only way that Norway can demonstrate that the minority interests of a few individuals cannot disrupt international fish supply. Incorporating salmon exports into the fishing agreement will not however resolve how the EU should respond to the Scottish complaints, especially as the dispute now involves other interested groups from within the EU.

The British government actively supported the original safeguard measures that initiated the current dispute. Perhaps, they should now reconsider their actions and instead accept responsibility for helping their own industry to resolve its market difficulties rather than seek trade sanctions in Brussels.

The reality is that this is not a trade issue, but rather one driven by changes in consumer needs. Consumers want value for money salmon and this is what the salmon industry has to provide. Whatever action they decide to take, Brussels cannot change this. Instead, the EU must ensure future supplies of salmon are not interrupted so consumers can get what they want. In exactly the same way, European consumers have been guaranteed supplies of other fish species because of the third party fishing agreement with Norway.  

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