1 INTERNATIONAL TRADE AND AQUACULTURE PRODUCTS DR. A LEM, FISHERY INDUSTRY OFFICER, FAO-GLOBEFISH NACA AQUAMARKETS 2003 MANILA, 2-6 JUNE 2003

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3 OUTLINE SOME WORDS ON FAO GLOBEFISH/INFONETWORK INTL. TRADE ISSUES THAT AFFECT TRADE WTO - FROM URUGUAY TO DOHA (AND CANCUN) CONCLUSIONS

4 FAO ALL ISSUES RELATED TO FISHERIES TRADE: FISH UTILIZATION AND MARKETING SERVICE COFI-SUBCOMMITTEE ON FISH TRADE (COFI-SUBCOMMITTEE ON AQUACULTURE) INFONETWORK (GLOBEFISH, INFOFISH, INFOPESCA, INFOPECHE, INFOSAMAK, EUROFISH, INFOYU)

5 GLOBEFISH PARTNERS: European Commission, NMFS (US), FROM (Spain), OFREMER (France), IREPA (Italy), DENMARK, Norwegian Seafood Export Council, MOROCCO, Fundación Chile ASSOCIATE PARTNERS: ACADEMIA AND INDUSTRY

6 GLOBAL FISH EXPORTS (2001) $ 56 BILLION DEVELOPING COUNTRIES: 50 % OF EXPORTS NET EXPORT REVENUES FROM FISHERIES MOST IMPORTANT AFTER TIMBER FOR DEVELOPING COUNTRIES (US$ 18 billion)

7 World exports of fishery commodities in 2001, in value

8 Net exports from commodities

9 AQUACULTURE EXPORTS PROBLEM OF ANALYSIS TRADE STATISTICS DO NOT GIVE ORIGIN ( CAPTURE OR AQUACULTURE) ONLY FOR SOME SPECIES IS ORIGIN EVIDENT ( TROUT, ATLANTIC SALMON, CARP, TILAPIA ) TRADE: A MIX OF FARMED AND CAPTURE PRODUCT (SHRIMP, PACIFIC SALMON)

10 MAJOR FARMED SPECIES FOR EXPORT SHRIMP SALMON BIVALVES CARP # 1 IN PRODUCTION BUT LIMITED TRADE

11 FASTGROWERS FARMED SALMON EXPORTS: 700,000+ MT, FARMED TROUT EXPORTS: 125,000+ MT FARMED TILAPIA EXPORTS: CA 70,000 MT FARMED SEABASS AND SEABREAM EXPORTS: CA 100,000 MT

12 World Trade of Shrimps, in MT (live weight) Source: FAO Figures in Live weight

13 World Trade Flow of Salmons, in MT (live weight) Source: FAO

14 # 5 IN US FISH CONSUMPTION EXPORTS ARE GROWING (Vietnam to US) AMERICAN CATFISH INSTITUTE - marketing and campaigns AMERICAN CATFISH

15 World Trade of Bivalves, in MT (live weight)

16 SCALLOP IMPORTS: 68,000 MT CLAM IMPORTS: 145,000 MT MUSSEL IMPORTS: 180,000 MT OYSTER IMPORTS: 41,000 MT BIVALVE TRADE (2001)

17 World Trade Flow of Seabass and Seabream, in MT (live weight) Source: FAO

18 World Trade of Tilapia, in MT (live weight) Source: FAO

19 LIMITED TRADE FOOD AND NON-FOOD EXAMPLE: EU-IMPORTS: 61,000 MT (2000) FRESH+DRIED SEAWEED

20 LIVE SEAFOOD GROWING DEMAND MAINLY ETHNIC MARKETS HIGH PRICES ASIAN ETHNIC MARKETS IN EUROPE AND US (+ ORNAMENTAL OR AQUARIUM MARKET)

21 NON-FOOD OR ORNAMENTAL MOSTLY FRESHWATER AQUACULTURE MARINE AQUACULTURE GROWING ASIA TO EU, US AND JAPAN VERY DEPENDENT ON ECONOMIC CLIMATE IMPORTS 2000: US$ 250 MILLION RETAIL: US$ 3 BILLION +

22 SOME FUTURE TRADE ISSUES 1.QUALITY AND FOOD SAFETY 2.WTO: TRADE AND TARIFFS 3.FISHERIES SUBSIDIES 4.DISTRIBUTION CHANNEL DEVELOPMENT 5.DEMAND TRENDS 6.FISH TRADE-FOOD SECURITY

23 QUALITY AND FOOD SAFETY CODEX STANDARDS FOR AQUACULTURE PRODUCTS HACCP AND RISK ASSESSMENT ISO 9000 STANDARDS LABELLING-CERTIFICATION TRACEABILITY AND PRODUCTION METHOD (CONSUMER INFORMATION) NEW EU LABELING RULES 2002 INFORMATION TECHNOLOGY

24 QALITY AND FOOD SAFETY II GMOS ENVIRONMENT TRANSPARENCY

25 TRADE AND TARIFFS !!! FISH IS A NON AGRICULTURAL PRODUCT !!! TARIFF REDUCTIONS OVER TIME NTBs (NON-TARIFF TRADE BARRIERS) TARIFF ESCALATION FOR PROCESSED PRODUCTS URUGUAY ROUND TRADE NEGOTIATIONS NEW ROUND OF TRADE NEGOTIATIONS: Doha Development Agenda

26 URUGUAY ROUND AGREEMENTS SPS (SANITARY AND PHYTOSANITARY MEASURES) TBT (TECHINICAL BARRIERS TO TRADE) ANTI-DUMPING SUBSIDIES AND COUNTERVAILING MEASURES DISPUTE SETTLEMENT (SHRIMP, SALMON, TUNA, SARDINES)

27 DOHA Development Agenda TRADE LIBERALISATION FISH=MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS: PROPOSAL: ELIMINATE ALL DUTIES ON FISH AND FISH PRODUCTS FISHERIES SUBSIDIES: PROPOSALS FOR GREEN/RED BOXES ECOLABELING

28 GLOBALISATION INTERNATIONAL DEVELOPMENTS COUNTRY MEMBERSHIP (WTO, CODEX, REGIONAL FISHERIES COMMISSIONS) CHINA IN WTO, RUSSIA IN 2004 ? COUNTRY MEMBERSHIP IN TRADE AREAS (ASEAN, EU, NAFTA, MERCOSUR) CONVERGENCE OF POLICY GLOBAL SOURCING-THIRD COUNTRY PROCESSING GLOBAL TRENDS IN DEMAND

29 DISTRIBUTION CONCENTRATION OF DEMAND INCREASING POWER OF SUPERMARKETS AND HYPERMARKETS CUSTOMER TRUST IN SUPERMARKETS ! GREAT POTENTIAL FOR AQUACULTURE PRODUCTS IN MODERN DISTRIBUTION CHANNELS –PLANNED PRODUCTION AND DELIVERY –STANDARD QUALITY –CONTRACT PRICES

30 DEMAND TRENDS FAO PROJECTIONS 2010/2030/ : 270 MILLION TONS SUPPLY GAP MORE FRESH FISH MORE LIVE FISH MORE VALUE-ADDED ORGANIC PRODUCTS

31 FOOD SECURITY AQUACULTURE IMPORTANT FOR DOMESTIC CONSUMPTION AQUACULTURE EXPORTS CREATE FOREIGN CURRENCY REVENUES FISH TRADE-FOOD SECURITY

32 CONCLUSIONS AQUACULTURE TRADE GOVERNED BY INTERNATIONAL AGREEMENTS (WTO) TRADE IN AQUACULTURE PRODUCTS GROWING, IN ABSOLUTE AND RELATIVE TERMS BETTER STATISTICS NEEDED FUTURE RISE IN DEMAND MUST BE MET BY AQUACULTURE SUPPLIES

33 THANK YOU !