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USA Closer To Hauling In Lucrative Tuna Dealff

19 January 2012 Fiji

Fixed multi-year fee with Pacific islands could proof very profitable in future

Source: ABC Radio Australia

Pacific Island tuna treaty negotiations with the United States have concluded in Nadi with breakthroughs on conservation and access fees.

The breakthroughs come after Papua New Guinea threatened to withdraw from the treaty - a move that would have brought the 24-year-old, multi-nation agreement to an abrupt end. The United States delegation offered to increase access fees for 2012 to USD 45,000 up from USD 24,000 and to take a more conciliatory approach on the Pacific’s longer term demands.

In this interview, the Director General of the Pacific Islands Forum Fisheries Agency explains the progress in the negotiations.

Presenter: Jemima Garrett
Speaker: Dan Sua, Director General of the Pacific Islands Forum Fisheries Agency

Sua: The application of national laws goes a long way in terms of ensuring that the long-term conservation and management of tuna resources is achieved, and most importantly, those that fish within the Exclusive Economic Zones of the Pacific Island Parties comply with these conservation and management measures.

Garret: One of the main sticking points in the negotiations, so far, is the rate that the US will pay or access to the tuna fishery. What is the latest on that?

Yes, the latest on that is that the Pacific Island Parties proposal with respect to the financial package for compensation for access to Pacific Island Parties EEZs is getting closer, and agreement seems to be getting closer between the two parties.

The United States has been driving a hard bargain, and even Secretary of State Hilary Clinton, has been involved in the lobbying. Just what sort of concessions were you able to extract from the United States?

Well, we are working hard on the fact that we are using market situations and market conditions. It is a commercial-based approach that the Pacific Island parties are taking into this negotiation, and it is the firm view of the Pacific Island Parties that any compensation that we are extracting from the Treaty should be consistent with the market conditions in the tuna fishery at this point in time.

So pretty much, the United States has to pay what other countries are paying, at least?

We are of the view that they should pay at least what the other countries are paying under bi-lateral agreements and relationships. And on top of that, don’t forget this is a multi-lateral access to 16 Pacific Island Parties Exclusive Economic Zones, so we are looking for a premium as well. So, in other words, it should be more than what is being paid under bi-lateral fishing access agreements.

And that is because they get the long-term access to such a large area, is it?

Absolutely! They are not only getting multi-lateral access to a number of exclusive economic zones, they are also getting a multi-year type agreement. Under bi-lateral agreements, it is only a single Exclusive Economic zone and, in most cases, it is only a single year agreement. But in the case of the US Treaty, it is not only as I said, multi-lateral access but at the same time, it is multi-year.

The number of fishing days allocated to the United States has also been at issue. What progress was made on that?

Well, there is also movement towards closing the gap between the two positions. The US initially put on the table a proposal for 9000 days and the Pacific Island Parties are of a view that the fishing efforts that should be allocated for the United States should be under the 2004 fishing-effort level and this is to make it consistent with the WCPFC (Western and central Pacific Fisheries Commission) conservation and management on tuna.

How crucial was Papua New Guinea’s threat to withdraw from the Treaty in getting the US to give some concessions?

Well, I think it not only expedited the process to some extent, but at the same time, it gives rise to the fact that the US can recognize that the tuna fisheries in the Pacific waters are worth far more than what they have been paying under the current Treaty terms and conditions.

Where do the negotiations go from here?

The negotiation, of course, for the next session, will be held in Honolulu, at the end of next month. And we are hoping that the gaps with respect to particularly, the access, the number of days for access, as well as the financial package that comes with it, should be closer, if anything, concluded.