Mombassa, Kenya 09-10 Feb. 2010 Dr A. Tall, ICSTD … · Mombassa, Kenya 09-10 Feb. 2010 Dr A. Tall, ICSTD dialogue on fisheries in ACP-EU 10/02/2010 negociations on EPAs

Mombassa, Kenya 09-10 Feb. 2010 Dr A. Tall, ICSTD dialogue on fisheries in ACP-EU

negociations on EPAs 10/02/2010

� OVERVIEW OF WORLD FISH PRODUCTION

� INTERNATIONAL FISH TRADE

� IMPORTANCE FOR DEVELOPING COUNTRIES

� INTRA REGIONAL FISH TRADE IN ECOWAS AND SADC: � OPPORTUNITIES AND CHALLENGES � TARIFF BARRIERS AND NON TARIFF BARRIERS � PREFERENCES � SUPPLY CAPACITY � TRADE INFRASTRUCTURE � TRADE FACILITATION � AID FOR TRADE AND DEVELOPMENT � BOOSTING INTRA REGIONAL TRADE

� CONCLUSIONS



Million t

2005

2006

2007

2007/05 p.a.

Capture 94 92 92 -1.0%

Farmed 49 52 53 4.0%

Total

143 144 145 0.7%



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30

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2005 2006 2007

Capture

Farmed



� Fisheries sector important for 44 countries:

▪ 15 small island developing states,

▪ 12 African countries, ▪ 12 Asian countries, ▪ 3 transition economies and

▪ 2 Latin American countries

� 15-16 per cent of global protein intake



� 41 million people fishers and fish farmers.

� In 2004, fish farmers accounted for one-quarter of the total number of fish workers in the primary sector

world fishing fleet comprised about 4 million units of which: - Asia (86 %); - Europe (7.8 %), - North and Central America 3.8%, - Africa (1.3 percent), - South America (0.6 percent) and - Oceania (0.4 percent)



� World fish exports grew nearly 7 percent from US$ 86 billion in 2006 to US$92 billion in 2007.

▪ 50% from developing countries;

▪ Africa’s share of fish export value doubled during the last decade to US$3.2 billion.

▪ LIFDCs accounted for 20% of total exports in value terms

▪ 71.1% of total imports by Developed countries. EU is the largest market for fish imports (43.5%).



� Net export revenues from fish exports earned by developing countries reached US$ 25 billion in 2007,

� LIFDCs alone, net export revenues rose to US $8.6 billion



� Including intra-EU trade; the EU accounted for 43.5% of global imports and 25% of exports:

▪ Intra-EU trade: €11.1 – 12.4 billion

▪ Extra-EU imports: € 12.8 – 13.7 billion

▪ Extra-EU Exports: € 2.1 – 2.3 billion

� Extra-EU imports accounted for 27% of global trade; and extra-EU exports for about 5%

� Without intra-EU trade, global fisheries trade would have been US$52.8 billion rather than US$ 92 billion



� Main ACP imports & exports: ▪ Imports: Yellow fin and skipjack tuna, herring and mackerel ▪ Exports: Canned/processed tuna; fish fillets; shrimp; chilled whole fish; frozen whole fish; octopus

� 15% of total fish imports into EU

▪ 33% of processed fish imports ▪ 12% of unprocessed fish imports

� Main ACP suppliers to EU:

▪ Unprocessed: Namibia, Senegal, Tanzania, Mauritania, Seychelles

(€ 1.21 billion in total) ▪ Processed: ▪ Seychelles, C. Ivory, Ghana, Mauritius, Madagascar (total € 0.53 billion)



� Intra African trade merely 10% of total external trade

� inadequate infrastructure for large trade volumes;

� Inadequate transport facilities, � Lack of cold storage and distribution; � High import duties. � Scarcity of foreign exchange and the existence appropriate credit scheme.





� 15 countries � Population 252 million. � GDP of US$162.5 billion (2005),

� the region’s gross national income per capita US $501

� Except for Ghana, ECOWAS classified as “low in human development” (UNDP, 2004).

� 12 of the region’s countries are among the Least Developed Countries (LDC)



OPPORTUNITIES AND CHALLENGES

0

100 000

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300 000

400 000

500 000

600 000

700 000

2000

2001

2002

2003

2004

2005

2006

THE GRAPH REPRESENTS TRADE IN VOLUME. THE MARKETS ARE NIGERIA, GHANA AND COTE D’IVOIRE THE INTRA REGIONAL TRADE IS ESTIMATED AT 150,000 MT. THE MAIN SUPLIERS ARE MAURITANIA AND SENEGAL



OPPORTUNITIES AND CHALLENGES

0

100 000

200 000

300 000

400 000

500 000

600 000

2000

2001

2002

2003

2004

2005

2006

THE GRAPH REPRESENTS THE INTRA REGIONAL TRADE IN VALUE US $



� Tariff barriers � Nearly a quarter of government revenue of ECOWAS countries

depends on import duties

� The ECOWAS established CET of 0%, 5%, 10% and 20%) similar to WAEMU

� fish is imported at an import duty rate of 10% and other fish has a duty rate of 20%

� Non-Tariff barriers � bureaucracy,

� corruption in customs processes,

� slow port operations,

� wastage and thefts at ports, poor storage conditions,

� harassment by police and other personnel at numerous road blocks within the region.



� intra ECOWAS trade preferences are not effective and MFN rates among the community members are still very high

� lack of relevant data it is not possible estimate how the EPA would affect the intra regional trade.



� SUPPLY CAPACITY

� poor quality of products traded

� low competitively

� poor technological capabilities of the local manufacturing sector

� TRADE INFRASTRUCTURE

� poor electricity network,

� poor state of roads,

� low development of telecommunications



� Documentary payment system, is cumbersome and complex procedures.

� Weak regional insurance scheme to guarantee compensation in event of risk.

� inconvertibility of currencies, scarcity of foreign exchange and high cost of imported capital goods from EU and USA

� Customs security is one of the major difficulties in freight transit.



� Assistance to support the process of consolidating regional integration in ECOWAS countries;

� Enhance the negotiating capacity of these countries in reaching mutually beneficial EPA with the EU.

� Assistance on capacity building in production; technology acquisition and transfer; trade negotiation and trade policy-making,

� substantial technical and financial assistance to the development of infrastructure and human resources need of the sub-region in order to remove capacity constraints and stimulate competitiveness.



� 14 countries � Population 234 million GDP of US$ 737 billion (2005),

� SADC is the richest region in Africa and South Africa is most important country in Africa economic terms. region’s gross national per capita US $ 3,152.

� 3 LDC countries.



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40000

60000

80000

100000

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140000

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2002

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� THE GRAPH REPRESENTS

� INTRA FISH TRADE IN

� VOLUMES. MAIN MARKETS ARE MAURITIUS,

� SEYCHELLES

� CONGO D.R.

� IMPORTS INTRA

� REGIONAL AROUND

� 150,000 MT

� MAIN SUPPLIERS ARE

� SOUTH AFRICA AND

� NAMIBIA



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40000

60000

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100000

120000

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160000

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2001

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2004

2005

� THE GRAPH REPRESENTS INTRA FISH TRADE IN VALUES.



� TARIFF BARRIERS � Gradual removal tariff and Tariff to an 85 percent threshold of intra-regional trade at zero tariffs by 2008. The remaining 15 percent by 2012

� RISDP outlines economic integration targets that include the establishment of an ▪ FTA in 2008, ▪ a Customs Union by 2010, ▪ Common Market by 2015 ▪ Creation of a Monetary Union by 2016, ▪ Regional central bank and common currency are expected by 2018



� NON TARIFF BARRIERS ▪ issuance of export permit AND import restrictions ▪ cumbersome administrative procedures, ▪ local government taxation, ▪ inefficient bureaucracy, ▪ corruption at borders, ▪ Complex and confusing tariff structure of SACU V.S. non SACU ▪ South Africa demand for quality.



� lowering of most favored nation (MFN) rates and the adoption of a cascading structure of tariffs, such that the lowest rates are applied

� implementation of the SADC Trade Protocol is expected to provide impetus to the process of economic integration and development in the SADC

� Rules of Origin have been tailored to facilitate trade and to ensure that only products originating within the region have access to the preferential status provided by the FTA



� EU and SADC agreed to continue negotiations towards a full EPA ,

� South Africa has indicated that it does not plan to initial. It will continue exporting to the EC under the TDCA,

� The non-participation of South Africa might have implications on the implementation of the interim agreement, as it forms a customs union with Botswana, Namibia, Lesotho and Swaziland under SACU



� SUPPLY CAPACITY

� Poor quality products ; � low level of technology; � lack of quality control for standards; � Communication problems � Low capacity Standards and certification

� CAPACITY/TRADE INFRASTRUCTURE

� Transport problems � high production costs (high-energy cost, poor infrastructure,

� high transportation and transactions, � Lack of cargo handling at airports/ seaports/ railways



� Limited access to financial services

� The lack of access to information

� high transaction costs � Limited trade fairs, marketing and investment promotion

schemes,

� access to labor in labor-scarce areas

� Limited technology development schemes.

� The lack of competition (privileges given to national airlines, nationally registered shipping cartels and railway services)



� strengthening the capacity of the SADC Secretariat and SADC governments in the area of trade policy formulation and negotiations;

� creating synergies between the different regional groupings (e.g. between SADC and COMESA);

� supporting regional and multilateral negotiations; and

� building a coherent and mutually supportive approach for the SADC region in interregional and multilateral trade negotiations.



� trade and institutional reform is an obvious prerequisite for achievement of deepening integration, trade facilitation and trade development in ACP countries,

� Implementation trade facilitation initiatives � removal of non-physical transport barriers along major transit corridors, especially those connecting landlocked countries to seaports (e.g. Inter-State Road Freight Transit Convention



� Policy makers focusing in regional integration;

� Improved infrastructure and communications;

� Stable economies; � Appropriate financial systems;

� Stable political situation are absolute necessary for the development of increased regional trade.



� common vehicle insurance scheme known as the Brown Card. It covers third-party liability and medical expenses,

� Automated System for Customs Data (ASYCUDA) in 1990,

� 1998 it launched the Trade Opportunity Management System to foster trade and investment by disseminating information on trade and business opportunities and promoting business contacts among economic operators in the community.



Measures adopted by COMESA Measures adopted by SADC

Harmonised axle load limits

COMESA carrier licence and transit plates

Harmonised road transit charges

Customs Regional Bond Guarantee

The COMESA Customs Declaration

Third Party Motor Insurance (Yellow Card)

ACIS - the Advance Cargo Information

System

ASYCUDA - the Automated System for

Customs Data

Inter-railway working agreement between

railway companies

Single customs declaration of goods

Harmonization of weight limits and

vehicle dimensions

Harmonization of road transit charges

Legal framework for overload control

Adoption community insurance scheme

SADC road design standards

Defining a regional trunk road network

SADC road signs and signals

SADC Driver Licensing - harmonizing the

training of drivers and delivering of

driving licensing

SADC region has adopted the concept of

Development Corridors and Spatial

Development Initiatives (SDI)



� NEPAD has recognized transport and trade facilitation as a priority area in its infrastructure action plan,

� AfDB, European Union, USAID and Japan are providing support to RECs

� The RECs are being provided with funds to set up observatories of abnormal practices, pay for the services of transport and trade facilitation experts at their Secretariat, and to evaluate the status of transit corridors as well as to reconstruct some of these corridors.



� FISH IS A GLOBALIZED COMMODITY

� GROWING IMPORTANCE OF AQUACULTURE

� VALUE IMPORTS ON THE RAISE US$92 BILLION IN 2007

� IMPORTANT FOR DEVELOPING COUNTRIES US$25 BILLION AND LFIDCs US $8,6 BILLION.

� NEED FOR AID IN TRADE

� AFRICA INTRA REGIONAL TRADE LOW BUT MANY CONTIENTAL (NEPAD) AND REGIONAL (e.g. ECOWAS AND SADC) INITIATIVES TO BOOST INTRA REGIONAL TRADE.



THANK YOU



Documents

Mombassa, Kenya 09-10 Feb. 2010 Dr A. Tall, ICSTD … · Mombassa, Kenya 09-10 Feb. 2010 Dr A. Tall, ICSTD dialogue on fisheries in ACP-EU 10/02/2010 negociations on EPAs