1. 1 Tuna 2010 Tuna fishing: Challenges and Strategies for Survival Joe Hamby

2. 2 Western and Central Pacific: 60% of World’s Catch 1.9 MMT in WCPFC* *WCPFC: Western and Central Pacific Fisheries Commission

3. 3 Parties to the Nauru Agreement (58% of WCP Catch) *73% excluding domestic catch in Japan, Philippines and Indonesia 1.1 MMT in PNA EEZ’s*

4. 4 WCPFC was created in 2004 Agenda burdened with Procedural, Legal, and non-tuna issues. Debates over fish ownership and catching privileges: Fishing States vs. Distant Water Fishing Nations (DWFN’s) Other interests (NGO’s, scientists, industry leaders, etc) Difficulty to reach consensus, even within a single country’s delegation.

5. 5 *Incorporated by WCPFC into Conservation and Management measure for yellowfin and bigeye tuna (CMM 2008-01) in December 2008 PNA’s Management Initiatives* High Seas Closure FAD Closure 100% Observer Coverage 100% Catch Retention Vessel Day Scheme

6. 6 Vessel Day Scheme (VDS) Originated in early 2000’s and implemented in December 2007. Replaced 2005 Palau Arrange limitation on number of vessels. The stated objective was limiting the catching effort by controlling the number of days. An unstated objective was giving priority in days allocation to those who invested in the PNA. Ambitious and complicated. Working?

7. 7 Tuna Processing Plants in the PNA Existing: PalauFresh & FrozenLuen Thai FSM““ RMI““ Cooked LoinsPan Pacific (Shanghai Kai Chuan) Solomon IslandsCannerySoltai (Tri Marine) PNG“South Seas (FCF) “RD (PNG) “Frabelle (PNG) Proposed or Under Development: Solomon IslandsCanneryDongwon “Frabelle Fresh & FrozenTBN PNGCanneryMajestic (Frabelle, Thai Union, Century) “Niugini Tuna (RD, Fairwell, Tri Marine) Cooked LoinsZhoushan and Hailishen Others?

8. 8 Kiribati Nauru Tuvalu Is that the case for the rest of the PNA countries? Inequalities in terms of land mass, population, fishing grounds, infrastructure, etc. Countries with less opportunities for onshore investment lean towards fishing vessel ownership and operation.

9. 9 Increase in PNA onshore investment (unstated objective) So, Is the VDS working? Fishing access scarcity? (stated objective)

10. 10 Source: WCPFC-SC6-2010/GN WP-1 WCPFC Purse Seiner Catch has grown Data shown in 000’s MT

11. 11 Source: WCPFC-SC6-2010/GN WP-1 and Tri Marine data Bangkok SJ Price vs. Number of WCP Purse Seiners

12. 12 Unachieved Goals Limit total days fished in the EEZ’s of PNA members to no greater than 2004 levels. No hard limits have been set. Temptation for each individual country to rule in favor of its own economical interest. Provide PNA members with opportunities to trade vessel days, sharing benefits VDS benefits. If one country has shortage of fish and another has surplus, days could be transferred (sold) to the latter.

13. 13 Small Island States are at a decision point Expansive Restrictive -More boats -Abundant Raw Material (for now) -Fewer boats -Valuable island processors Capacity

14. 14 Expansion implies direct competition with Thailand Over 90% of the Thai imported raw material comes from the WCPFC (vast majority from PNA countries waters). Reference: 2009 Thai Customs Data Abundant supply depresses tuna prices, which can lower the value of the entire fishing industry. Thailand is the most important tuna market in the world. They reap the benefits of economies of scale and have ample processing capacity. Island-based tuna processors have no option but to compete with Thailand, which can be expensive.

15. 15 Expansion implies direct competition with Thailand Some Islands depend on duty savings to offset higher processing costs. Lower prices imply lower savings in duty. An expansive policy would be damaging to island-based processors.

16. 16 “...The small island developing States of the Pacific have long held aspirations for developing their own domestic commercial fisheries and retaining an even greater share of the benefits from the multi- billion dollar fishery in their backyards. At the same time, the well- established fleets of the industrialized countries continue to grow and become more efficient with the advent of new and better fishing technology. Such growth in the number of fishing vessels in both small and large fleets, coupled with higher productivity in some fleets, poses real threats to the sustainability of WCPO tuna resources...” Source: http://www.wcpfc.int/frequently-asked-questions-and-brochures According to the WCPFC…

17. 17 Restriction can be achieved through vested interest Access sellers have little incentive to forego incremental fishing license income Resources are needed today, and revenue sources are limited. For countries with no onshore tuna processing, a transparent VDS brings opportunities to develop joint ventures or purchase new/second hand purse seiners Funding is the issue. Without vested interest in the profitability of the tuna business, there is little incentive for resource owners to control fishing efforts. How can equity investment by small islands be reached?

18. 18 DWFNSIDS Island Based Processors or Fleets Financial Assistance Dividends and Jobs Equity and Licenses Licenses and Dividends Equity and Expertise Access Agreements Government Leadership

19. 19 Thank You!