SHARING THE BALTIC SALMON SHARING THE BALTIC SALMON Kulmala Soile, Lindroos Marko Dep. of Economics and Management, University of Helsinki, Finland SHARING THE FISH Conference 06

Structure of the talk Background Background Baltic Salmon Baltic Salmon Finnish national regulations Finnish national regulations EU’s Common Fisheries Policy EU’s Common Fisheries Policy Conclusions Conclusions Future work Future work

Background How to increase the impact of economic advice on fisheries management? How to increase the impact of economic advice on fisheries management? How to solve the dispute related to sharing issues of Baltic salmon in Finland? How to solve the dispute related to sharing issues of Baltic salmon in Finland?

Baltic salmon Baltic Proper Bothnian Sea Gulf of Finland Bothnian Bay Gulf of Bothnia 40 of 100 stocks remain 40 of 100 stocks remain Present Present Past Past Migration routes Migration routes Feeding areas Feeding areas Salmon Action Plan (SAP) Salmon Action Plan (SAP) stockings stockings yield maximization yield maximization Wild and reared salmon Wild and reared salmon

Baltic salmon ODN Different fisheries CDN CTN 1. Offshore driftnet (ODN) Offshore longline (OLL) 3.Coastal driftnet (CDN) 3. Coastal driftnet (CDN) 4.Coastal trapnet (CTN) 4. Coastal trapnet (CTN) 5.River (RI) 5. River (RI) RI OLL Professional Professional Recreational Recreational Subsistence fishing Subsistence fishing

Finnish national regulations Delayed opening of coastal fishery Delayed opening of coastal fishery wild salmon migrate earlier wild salmon migrate earlier ease up since 1998 ease up since 1998 Gear restrictions Gear restrictions Selection Selection > 85 cm will be released > 85 cm will be released License for river fishing License for river fishing day or period day or period

Finnish national regulations: Towards ITQs? 1990´s 1990´s disquisition & research disquisition & research business as usual continued business as usual continued 2005, Salmon fund 2005, Salmon fund response to advancement of coastal fishery response to advancement of coastal fishery compensation for professional fishermen compensation for professional fishermen ITQs more permanent solution? ITQs more permanent solution?

EU’s Common Fisheries Policy (CFP) Objectives Objectives Responsible and sustainable fisheries Responsible and sustainable fisheries Economically viable fishing industry Economically viable fishing industry Fair standard of living Fair standard of living Annual TAC Annual TAC Biological advice dominates Biological advice dominates In general, CFP has failed In general, CFP has failed decreasing number of fish and employment decreasing number of fish and employment

CFP decision process for TAC ICES Stock Assessment Working Group TAC ICES Advisory Committee on Fishery Management ACFM Scientific, Technical and Economic Committee for Fisheries STECF European Commission DG Fish Council of Fisheries Ministers Regional Advisory Council RAC Bilateral negotiations with Russian Federation

Baltic Sea Regional Advisory Council (BS RAC) Will be established in 2006 Will be established in 2006 Fishing sector and other interests groups to which CFP affects Fishing sector and other interests groups to which CFP affects Short-term solution to increase the impact of economic advice? Short-term solution to increase the impact of economic advice? Fishermen = Businessmen Fishermen = Businessmen NGOs = Conservationists NGOs = Conservationists

Proposal for a reformed CFP decision processes Bioeconomic stock assesment (BESA) Bioeconomic stock assesment (BESA) Combination of ICES and STECF Combination of ICES and STECF Output: biologically and economically sound TAC (BETAC) Output: biologically and economically sound TAC (BETAC) EU-wide ITQ system based on BETAC? EU-wide ITQ system based on BETAC? Emission’s Trading Scheme exists Emission’s Trading Scheme exists

Proposal for a reformed CFP decision processes European Commission DG Fish Council of Fisheries Ministers Regional Advisory Council RAC Bilateral negotiations with Russian Federation Bioeconomic Stock Assesment BESA ITQ BETAC

Conclusion Regional Advisory Councils: short term solution for increase the impact of economic advice Regional Advisory Councils: short term solution for increase the impact of economic advice In order to achieve the CFP objects, the decision process of TAC has to be reformed In order to achieve the CFP objects, the decision process of TAC has to be reformed Salmon Fund may prepare the way for Finnish ITQ-system for Baltic salmon Salmon Fund may prepare the way for Finnish ITQ-system for Baltic salmon Finnish system a basis for EU-wide ITQs? Finnish system a basis for EU-wide ITQs?

Future work Proposition for ITQ-scheme for Baltic salmon in Finland Proposition for ITQ-scheme for Baltic salmon in Finland Popular presentation of the basic methods and results of fisheries economics Popular presentation of the basic methods and results of fisheries economics Proposition for a bioeconomic stock assessment model for Baltic salmon Proposition for a bioeconomic stock assessment model for Baltic salmon Game theoretical analysis of the CFP decision process Game theoretical analysis of the CFP decision process