Aquaculture TradeAquaculture Trade

Fahmida Khatun, PhDCentre for Policy Dialogue (CPD), Bangladesh

Presented at the Meeting onFisheries, Trade and Development

Organised by ICTSD

Geneva, Switzerland: 16 June 2010 1

CONTENTS

I. IntroductionII. Production of AquacultureIII. Trade in AquacultureIV. Market Access Issues under the WTO

RegimeV. Conclusions

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■ Aquaculture production is done from three sources: fresh-water aquaculture, marine-water aquaculture and brackish-water aquaculture.

■ In 2007 total aquaculture production was estimated to be about 65,187,798 metric tonnes whose market value was about US$ 94551.58 million (FAO 2009). In 1970 the production was about 3.5 million tonnes;

■ Total aquaculture production by the low-income food deficit countries (LIFDCs) in 2007 was about 52,543,714 tonnes which is about 80.6% of the world total.

■ Aquaculture now represents about 50% of international trade in the fisheries sector.

■ In developing countries aquaculture is an important source of animal protein.

I. Introduction

I. INTRODUCTION ■ It is a source of both male and female employment. Women, in

many developing countries, are particularly involved in processing, retailing and local trading;

■ In 2007 China alone generated 62% of the world aquaculture production followed by India, Vietnam, Indonesia and Thailand;

■ Among the most captured aquatic species, carps alone contributed about 38% of the global catch in 2007, white leg shrimp generated US$ 8.8. billion followed by Atlantic salmon (US$ 7.6 billion);

■ The contribution of aquaculture to the global supply of seafood has increased from 5% in 1970 to about 36% in 2007;

■ Between 2002-2007 aquaculture production grew at average rate of 6.5 % annually.

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I. INTRODUCTION

■ Many countries of the world, particularly the lower and middle income countries, depend on aquaculture not only for their food but also for earning foreign currencies by exporting them. On the other hand, millions of people around these countries depend highly on aquaculture for their survival.

■ Currently, about 80% of the world’s fisheries (including aquatic species) are being fished up to or beyond their biological limits, while in 1978 this was only in case of up to 9% of the world fisheries. It shows how fast these resources are getting extinct.

■ Keeping in mind the need for additional food, specially protein, demands for the overgrowing people of the world as a whole and the developing countries in particular, it is important to stop unsustainable aquaculture practices. The significant trade volumes of aquaculture in developing countries also indicate the importance of this sector.

■ Thus there is need for developing sustainable aquaculture across the world for larger societal benefits.

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II. Production of Aquaculture

Figure 1: Various Types of Aquaculture Production by Continent

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Share in Global AquaticProduction of Fish (%)

Share in Global Productionof Aquatic Plants (%)

Share in Total AquacultureProduction of All Types

(%)

%

Asia Africa Europe Americas Oceania

The above figure indicates that Asia has a clear edge over the other continents in aquaculture production.

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II. Production of Aquaculture contd…..

Table 1: Value of Aquaculture production by continent Figure 2: Aquaculture Production by continent

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2001 2003 2005 2007

YearSh

are

in G

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duct

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(%)

Asia Africa Europe Americas Oceania

  2001 2003 2005 2007

Asia 90.07 90.45 91.14 91.12

Africa 0.93 1.06 1.14 1.27

Europe 4.73 4.30 3.69 3.59

Americas 3.99 3.93 3.76 3.76

Oceania 0.28 0.26 0.27 0.26

■ The above table and graph indicate how aquaculture production has remained predominantly an Asian output. Besides China, many other developing Asian countries also produce substantial amount of aquatic resources and earn foreign currencies by exporting them.

II. PRODUCTION OF AQUACULTURE CONDT…Table 2: List of Top 10 Aquaculture Producing Countries (in MT)

Country 1999 2001 2003 2005 2007

China 20141602 22702069 25083253 28120690 31420275

India 2134814 2119839 2312971 2961978 3354754

Vietnam 398468 588098 937502 1437300 2156500

Indonesia 749269 864276 996659 1197109 1392904

Thailand 693762 814121 1064409 1304213 1390031

Bangladesh 593202 712640 856956 882091 945812

Norway 475932 510748 584423 661811 830190

Chile 274216 566096 563435 698214 829842

Japan 759262 799946 823873 746221 765846

Philippines 352567 434661 459615 557251 709715

World Total

30730670 34610709 38909467 44282248 50329007

Source: FAO 2007

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II. PRODUCTION OF AQUACULTURE

Figure 3: List of Top 10 Aquaculture Producing Countries

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10000000

20000000

30000000

40000000

50000000

60000000

2001 2002 2003 2004 2005 2006 2007

Year

cap

ture

Pro

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China Peru Indonesia USA

Japan India Chile Russian Fed

Philippines Thailand

China has a clear advantage over other Asian aquaculture producing countries in the world

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II. PRODUCTION OF AQUACULTURE TABLE 3: WORLD AQUATIC PRODUCTION BY ISSCAAP DIVISIONS

Name of the ISSCAAP Division

1999 2001 2003 2005 2007

Freshwater Fishes

16997851 18621481 20249639 23592477 26768131

Diadromous Fishes

2065738 2520168 2680140 2850840 3308217

Marine Fishes

811696 1022683 1301981 1541637 1851465

Crustaceans

1448876 2008179 3041842 3815014 4888893

Molluscs 9282495 10287098 11344452 12097446 13071600

Misc. Aquatic Animals

124014 151100 291413 384834 440701

Aquatic Plants

8826283 9635637 11304966 13430364 14858791Source: FAO 2009.

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II. PRODUCTION OF AQUACULTURE TABLE 5: WORLD AQUACULTURE PRODUCTION BY PRINCIPAL SPECIES IN 2007

Aquatic Species 1999 2001 2003 2005 2007

Grassostrea gigas 3274329 3682740 3883579 4034140 4233829

Hypophthalmichthys molitrix

2999542 3482690 3372386 3674941 3662810

Ctenopharyngodon idellus

2903383 3021977 3257693 3376501 3610318

Ruditapes philippinarum

1672199 1846436 2286198 2588903 3044057

Cyprinus carpio 2347147 2776055 2998939 2705833 2872874

World Total Aqua. Production

30730670 34610709 38909467 44282248 50329007

Source: FAO 2009

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III. TRADE IN AQUACULTURE

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Asia Africa Americas Europe Ocania

Figure 4: Exports of Aquatic products by Different Continents

■ Europe and Asia dominate export of aquaculture

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III. Trade in Aquaculture contd…

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Europe imports highest amount of aquatic products.

Figure 5: Imports of Aquatic products by Different Continents

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III. Trade in Aquaculture contd…Figure 6: Exports of Aquaculture Products by Selected Countries

■ China exports highest amount of aquatic products followed by Thailand, Indonesia and India.

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Bangladesh China IndiaIndones ia Japan KoreaPhilippines Thailand Vietnam

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III. Trade in Aquaculture contd…

Figure 7: Imports of Aquaculture Products by Selected Countries

■ Among the Asian countries, Vietnam and Thailand import highest amount of aquatic products from other countries whereas China, Bangladesh and Indonesia import a negligible amount.

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2001 2002 2003 2004 2005 2006 2007

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Bangladesh China IndiaIndonesia Japan KoreaPhilippines Thailand Vietnam

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IV. Market Access Issues for Aquaculture

•Tariff: Reduction of import tariff by importing countries and removal of protectionist tariffs will stimulate international fish trade;• It will stimulate investment in processing, implementation of standards• More transparent tariff regime is essential.

• Non-Tariff Measures * Sanitary and Phyto Sanitary (SPS) Countries impose strict food safety and animal and plant measures (SPS) on products from other, particularly developing countries. Measures may include steps such as:

inspection of products, permission to use only certain additives in food, determination of maximum levels of pesticides use, quarantine requirements and import bans.

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IV. Market Access Issues for Aquaculture

* Technical Barriers to Trade (TBT) Agreements: Issues covered under TBT include standards including packaging, labeling requirements and procedures for assessment of conformity.

Cases:

(1) to export fish and fisheries product to the EU vessels must carry a veterinary certificate and processing factories must be inspected and passed by a national competent authority accredited by the EU. These standards are greater barriers than tariffs;

(2) the EU ban on imports of shrimp from Bangladesh in 1997, imposed on the ground of health safety and hygiene.

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IV. Market Access Issues for Aquaculture

■ Anti-dumpingThe use of anti-dumping measures has increased tremendously after the GATT and WTO agreements restricted the use of normal tariffs. There is accordingly a substantial suspicion that anti-dumping measures to a large extent are being used as protective measures. Example: Vietnamese experiences for its catfish industry while exporting to a big market such as the USA. The anti-dumping policy of the USA led to a strong decline in export of catfish to the US market.

■ SubsidiesThe Doha Agenda is particularly concerned about the use of subsidies in fisheries by the rich countries which lead to over-exploitation and over-fishing.Fisheries access agreements could be reformed through WTO’s discipline on subsidies

■ Labelling and certificationThere is an increased interest in eco-labelling. Though it may be difficult for developing countries to meet certification criterion it can be an incentive for better fisheries management in order for countries to enter developed country markets.

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• Productivity growth and profitability have been the driving forces behind growth of aquaculture production;• Lower production costs have made aquaculture competitive in the global market;• Trade measures have a role to sustainable practice in aquaculture production;• There is a need for transparent trade measures.

V. Concluding Remarks

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• Aquaculture resources are increasingly coming under serious threats from overexploitation and degradation;

• Proper management and development of sustainable exploitation patterns are important to reap the benefits

for a longer period;

• Aquaculture is also vulnerable to climate change threatening reduced food consumption, income levels

and employment opportunities in poor countries;

•There should be a balance between domestic consumption and export. Food security should get priority against increased economic gain from international trade of aquaculture.

V. Concluding Remarks

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• Efforts should betaken to rebuild stocks and improve aquaculture governance at domestic and global levels;

• Improved aquaculture management through strict monitoring have to be done by various international and regional fisheries and aquaculture bodies, and non-government organisations (NGOs);

• Alternative employment opportunities should be created in regions where aquaculture stock is declining;

• Fishery and aquaculture sector in the national preparedness planning for climate impact as the sector is vulnerable to climate change in many countries.

V. Concluding Remarks

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Thank You