1. Belgrade, 02.04.2013 Common organization of market in fishery and aquaculture products Hannes Ulmas Fisheries Economics Department Head of Market Regulation and Trade Bureau Ministry of Agriculture Estonia

2. Belgrade, 02.04.2013 Outline  CFP (Common Fisheries Policy)  CMO (Common Market Organization)  Subsidies

3. Belgrade, 02.04.2013 Common Fishery Policy (CFP) History  1957 - Constitutional treaty of the European Community (the Treaty of Rome). Articles 32-39 of the Treaty of Rome, defined the goals and organisation of the future agricultural policy, which included fisheries. So, within the field of agricultural policy a reference was made to fish as agricultural production. The fisheries sector was a minor issue for the original six member states, who consentrated on the CAP (Common Agricultural Policy).

4. Belgrade, 02.04.2013 History  The European Community adopted its first fishery regulations in 1970. Regulations concerned three areas: the right to work in the waters of another Member State, the organisation of the market for fishery products, and access to financial aid granted by the Community to modernise the sector.  The joining of three countries - United Kingdom, Ireland and Denmark – in the European Community in 1973 changed the economy of these regulations, as the catches of these three new Member States represented more than twice those of the six founding Members. The coastal waters were reserved for local fishermen and those who usually worked in those waters (exclusive rights in coastal fisheries regarding the 12 mile).

5. Belgrade, 02.04.2013 Common Fishery Policy (CFP) History  CFP as a policy was established in 1983  A common policy in the EU is the sum of the European Community`s legislation (regulations, directives, decisions, recommendations) put into force.  It took 26 years to take it current form.  CFP has four components (pillars).

6. Belgrade, 02.04.2013 CFP Structural Policy 1970 Common Organisation of the Markets 1970 Fisheries agreements with third Countries 1976 Resource conservation and management system 1983

7. Belgrade, 02.04.2013 Reforms  A first revision of CFP was 1992.  A second reform of the CFP was adopted in December 2002.  A third reform of the CFP will be adopted in 2013.  A green paper about the third reform of CFP was maid available on April, 2009

8. Belgrade, 02.04.2013 Timetable for the third reform In June 2011 the Commission adapted:  A legilative proposal for a Basic Regulation (replacing Council Regulation 2371/2002)  A legislative proposal for a Market Policy (replacing Council Regulation 104/2000)  A Communication on the External Dimension of the CFP

9. Belgrade, 02.04.2013 Timetable for the reform  A legislative proposal for the future financial instrument 2014-2020 in support of the CFP presented in late autumn 2011.

10. Belgrade, 02.04.2013  The oldest element of the Common Fisheries Policy  Has existed since 1970  Originally designed to stabilise markets and ensure price stability for producers  The present Common Market Organisation is from 2000  Council Regulation 104/2000 Common Market Organisation (CMO)

11. Belgrade, 02.04.2013 The CMO contains four key elements:  Common marketing standards for fresh products and consumer information  Producer organisations (PO)  Price support scheme  Rules on trade with third countries

12. Marketing standards/quality standards  In the EU level  In Member State level or in industry level Belgrade, 02.04.2013

13. What is quality? Belgrade, 02.04.2013

14. What is a quality?

15. Belgrade, 02.04.2013 Common marketing standards in the EU  Marketing standards (Council Regulation 2406/96) - freshness categories - size categories  On annexis freshness ratings and size ratings Not for aquaculture

16. Common marketing standards Belgrade, 02.04.2013 -Council regulation 2406/96 common marketing standards D. Products from third countries, Article 11 1. products as specified in Article 3 imported from third countries may be marketed only if they are presented in packages on which the following information is clearly and legibly marked: - country of origin, printed in Roman letters at least 20 mm high, - scientific name of product and its trade name, - presentation, - freshness and size categories, - net weight in kilograms of products in the package, - date of grading and date of dispatch, - name and address of consignor.

17. Belgrade, 02.04.2013 Common marketing standards are hereby laid down for the following products:  1. (a) Saltwater fish falling under CN code 0302:  - plaice (Pleuronectes platessa),  - albacore or longfinned tuna (Thunnus alalunga),  - bluefin tuna (Thunnus thynnus),  - bigeye tuna (Thunnus or Parathunnus obesus),  - herring of the species Clupea harengus,  - cod of the species Gadus Morhua,  - sardine of the species Sardina pilchardus,  - haddock (Melanogrammus aeglefinus),  - saithe (Pollachius virens),  - pollack (Pollachius pollachius),  - mackerel of the species Scomber scombrus,  - mackerel of the species Scomber japonicus,  - horse mackerel (Trachurus spp.),  - dogfish (Squalus acanthias and Scyliorhinus spp.),  - redfish (Sebastes spp.),  - whiting (Merlangius merlangus),  - blue whiting (Micromestistius poutassou or Gadus poutassou),  - ling (Molva spp.),  - anchovy (Engraulis spp.),  - hake of the species Merluccius merluccius,  - megrim (Lepidorhombus spp.),  - Ray's bream (Brama spp.),  - anglerfish (Lophius spp.),  - dab (Limanda limanda),  - lemon sole (Microstomus kitt),  - pouting (Trisopterus luscus), and poor cod/Mediterranean cod (Trisopterus minutus),  - bogue (Boops boops)  - picarel (Maena smaris),  - conger (Conger conger),  - gurnard (Trigla spp.),  - mullet (Mugil spp.),  - skate (Raja spp.),  - Common flounder (Platichthys flesus),  - sole (Solea spp.),  - scabbardfish (Lepidopus caudatus and Aphanopus carbo);  (b) Crustaceans falling under CN code 0306 whether presented live, fresh or chilled, or cooked by steaming or by boiling in water:  - shrimps (Crangon crangon) and pandalid shrimps (Pandalus borealis),  - edible crabs (Cancer pagurus),  - norway lobsters (Nephrops norvegicus);  (c) Cephalopods falling under CN code 0307:  - cuttlefish (Sepia officinalis and Rossia macrosoma).

18. Belgrade, 02.04.2013 Other standards  Public certification schemes - Label Rouge (French quality label) Scottish salmon was the first non-French product to gain the French public quality mark. - Thai Quality Shrimp  Private standards - Norweigian industry Standards (for trout) - Alaska Quality Seafood

19. Belgrade, 02.04.2013

25. Consumer information, mandatory information(EU regulation 2065/2001 …as regards to informing cosumer about fishery and aquaculture products)  The commercial designation of the species  The production method  The area where the product was caught or farmed  The date of fishery products or harvest of aquaculture product  Wether the product is fresh or has been defrosted

26. Belgrade, 02.04.2013 Additional voluntary information  Enviromental information  Ethical or social information  Information on production techniques  Information on production practices  Information on the nutrional content of the product

27. Belgrade, 02.04.2013 PO  Improving the sale conditions of their members' products by: 1. planning the production and its adjustment to demand, in terms of both quantity and quality, in particular by implementing production plans; 2. concentrating the production (supply); 3. stabilising prices;

28. Belgrade, 02.04.2013 Requirements for PO-s  In case of aquaculture products, economic activity of the PO shall be considered sufficient if the producer organisation disposes of at least 25 % of total production of the species or group of species in question, in a production area which is deemed sufficiently large by the Member State concerned on the basis of criteria established by that Member State.

29. Belgrade, 02.04.2013 Possibilities for POs  Operational programms - the marketing strategy to be followed by the organisation to match the quantity and quality of supply to market requirements; - a production plan - penalties applicable to members who infringe the decisions adopted to implement such plans

30. Belgrade, 02.04.2013 Aquaculture – new (fifth) pillar of CFP? CFP`s vision for 2020  Europe is not any more dependent on import of fish  Aquaculture industry is developed on high technological level and supply know-how and technology outside Europe

31. Final proposal for a regulation of the European Parliament and of the Council on the Common Fisheries Policy Specific objectives: Policy shall promote the development of Union aquaculture activities to contribute to food security and employment in coastal and rural areas.

32. Promoting aquaculture, art 43  Non-binding Union strategic guidlines on common priorities and targets for the development of aquaculture activities shall be established by the Commission by 2013  Strategic guidlines shall form the basis for multiannual national strategic plans

33. Strategic plans shall aim at:  Improving the competitivness of the aquaculture industry and supporting its development and innovation  Encouraging economic activity  Diversification and improvement of the quality of life in costal and rural areas  A level-playing field for aquaculture operators in relation to access to waters and space

34. Member States responsibilities  Memebr States shall establish a multiannual national strategic plan for the development of aquaculture activities on their territory by 2014.  Member States shall exchange information and best practices through an open method of coordination of the national measures contained in multiannual strategic plans.

35. Multiannual national strategic plans shall aim the following:  Administrative simplification, in particular regarding licenses  Certainty for aquaculture operators in relation to acess to waters and space  Indicators for enviromental, economic and social sustainability  Assessment of other possible cross- bordering effects on neighbouring Member States

36. Belgrade, 02.04.2013  European Fisheries Fund (EFF) Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund  Second financial instrument (control, data collection, etc) Council Regulation (EC) No 861/2006 of 22 May 2006 establishing Community financial measures for the implementation of the common fisheries policy and in the area of the Law of the Sea  Agricultural Guarantee Fund (EAGF) (the Common Market Organisation) Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy Funding within the Common Fisheries Policy

37. Belgrade, 02.04.2013 Art 45, Innovation Art 46, Productive investments in aquaculture Art 47, New forms of income and added value Art 48, Management, relief and advisory services for aquaculture farms Art 49, Promoting human capital and networking Art 50, Increasing the potential of aquaculture sites New fund, European Maritime and Fisgeries Fund (EMFF) Aquaculture measures

38. Belgrade, 02.04.2013 Art 53, Conversion to eco-management and audit schemes and organic aquaculture Art 54, Aquaculture providing enviromental services Art 55, Public health measures Rt 56, Animal health and welfare measures Art 57, Aquaculture stock insurance Aquaculture measures

39. Belgrade, 02.04.2013 Financial engineering instruments  Venture capital funds  Loan funds  Guarantee funds Such investments may only be made at the establishment, in early stages or on the expansion of those enterprises.

40. Belgrade, 02.04.2013 Thank You!