If Pacific Islands and USA do not agree – US Catches will end May 2012
Source: Islands Business
Pacific Islands Parties and the United States have gone into another round of critical negotiations on January 12 for a successor tuna agreement after the US rejected the Pacific’s proposal. The current treaty ends May 2012.
It is the fifth round of negotiations. The fourth held in Nadi, Fiji, in November ended in a deadlock.
The current treaty will end in May 2012 because Papua New Guinea issued a notice of withdrawal as stipulated under Article 12 of the Treaty.
The US delegation was well represented at the Nadi talks displaying the seriousness of the situation. Leading their delegation was high ranking US State department official James Loi, Deputy Assistant Secretary, Bureau of East Asian and Pacific Affairs.
Under the existing treaty, the US State Department pays USD 18 million with the tuna industry paying USD 3 million plus indexation to the parties, including those islands the US fleet does not fish in.
For these USD 21 million annually the US flagged fleet was allowed to catch more than 240,000 metric tons of tuna; thus valuing the ending tuna treaty at USD 87.50 per M/T income for the Pacific Island nations. Considering that an average purse seiner catches about 30 M/T daily – this amounted to USD 2,625 per fishing day.
Pacific Parties offer
The Pacific Islands Parties (PIPs) proposal at the fourth round of negotiations is to make available 6000 fishing days to the US fleet at USD 10,000 a day, or a total of USD 60 million annually.
The Pacific parties also want all vessels, US fishing fleet included, to adhere to the sovereign laws of each EEZ and abide by their fishing rules; something which they believe was undermined by the US treaty.
Under this proposal, the 6000 days will consist of 5500 days to be utilized in the PNA’s EEZs and 500 days in the EEZs of non-PNA Pacific islands countries.
US final proposal
The US, however, is offering USD 45 million for 9000 days – or USD 5000 per day- to fish in any zone in the US treaty area, something the Pacific Parties are not too keen about.
PIPs say
PNA Secretariat’s Dr Transform Aqorau said the PIPs have considered the US Treaty in the context of future fisheries relations and what they want to see.
“Especially in light of the increasing value now being placed on their resources,†he said.
“In this respect, the PIPs said that future fisheries relations with the US will likely require a package of arrangements that meets the different needs of the parties.â€
Aqorau said this would include arrangements to promote domestic processing such as requiring off-loading for processing in PIP plants or first refusal rights on catches under the treaty, along with improved access to the US market, which will most directly benefit those with, or planning to have, processing plants, to name a few.
“Other arrangements such as joint ventures and trade, the US has tried to push the issue aside. It appears there will now be a separate process where PIPs will push for improved access to US markets for tuna products. The US cannot expect to get preferential access to PIPs’ fish if it cannot provide fair access to its markets.â€
Aqorau said Pacific Leaders must therefore prioritize the economic value of their major resource above what is really a very small aid contribution.
Aqorau said the PIPs’ stand on any future arrangements includes:
• That commercial access arrangements be negotiated with the US Tuna Industry for access for US vessels;
• That the aid component with the US Government and access arrangements with the US Tuna Industry be kept separate;
• That the aid component with the US Government be distributed appropriately amongst all Pacific Islands Parties;
• That there is no compromise on the PIPs for US days, and that this may be set at 2,773 with options for US vessels to purchase additional multilateral days pooled equally by all parties;
• That the price must be above the value of a bilateral VDS day which is currently valued at USD 5,000 a day.
Leaders
An observer at the meeting said it would not be up to the leaders to decide where the fate of our tuna stocks lie.
The Vessel Day Scheme used in PNA nations has increased the value of stock for Pacific Islands Parties and it is better value for a depleting resource. In the past, the US caught in excess of 240,000 metric tons of fish, which was worked out at USD 440 million annually of finished fish products per year.
Both parties eagerly await the outcome of the fifth round of negotiations started on January 12.