TRADE ENVIRONMENT AND AQUATIC PRODUCTS FROM THAILAND Ruangrai

TRADE, ENVIRONMENT AND AQUATIC PRODUCTS FROM THAILAND Ruangrai Tokrisna Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University Bangkok, THAILAND

FISHERIES SECTOR • Asian countries production: half of world production • 20 % of total production are exported. • Asian countries export: a quarter of world exports • To meet domestic consumption requirement, the production has to be increased by 30% in 2010 (SEAFDEC)

• High foreign exchange earning induced increasing investment in shrimp culture. • Lack of effective management leads to over exploitation and resource degradation. • Impact on small scale fisheries. – Less catch – Higher fishing cost – Lower income – Lack of alternative sources of income – Worsen living condition

FISHERIES POLICY • Difficulties in effective management – Lack of scientific information for stock assessment – Multi-species, multi-gear, seasonal fisheries – Lack of capital and personnel for monitoring and enforcement – Inadequate recognition on environmental impact • Community based fishery management

TRADE BARRIERS • Tariff measures – Low on primary product – inducing more exploitation in exporting countries – Still high on processed products – protection on producing sector in importing countries • Non-tariff measures – Food safety standards – Labelling and environmental requirements

Tariff Escalation FISH CRUSTACEANS MOLLUSCS PRIMARY PREPARED 0 0 -35 0, 7. 5 0 -10. 8 0, 3. 5 0 -10. 8 1, 4 0 -9. 6 1, 4 4. 8 -9 0 -10. 5 4. 8 -9 0, 3. 5 24 0, 12, 18 0 -20 0, 3 0 -11 0, 3 0 -6. 5 0, 3, 4 0 -6. 5 0 0 -5 0 0 S. KOREA 10, 20 10 -106 14, 20 20 TAIWAN 0, 10 -106 15 -101 20 -35 10 -42. 5 7. 5 -35 10 -42. 5 0 -23 23 -28 24 -32 20, 22, 23 27 20, 22, 23 USA JAPAN EU CANADA AUSTRALIA CHINA

Non-tariff Measures SPS USA Ö JAPAN Ö ENVI IMP. REG. Ö EU TBT IMP. QUOT A CHARG E MIN. P Ö Ö CANADA AUSTRALI A Ö Ö S. KORE A Ö Ö Ö

Food safety requirement • • • CODEX HACCP GMP ISO 9000 Agreement on SPS – To be announced “w/o undue delay” – EU zero tolerance of anti-biotic residue

Labelling and environmental requirement • Turtle exclusive device, TED • Mangrove area protection, MAP • Vietnamese catfish export to US – species labelling, non-market economy, antidumping • US legislation on “Shrimp Importation Financing Fairness” • Lack of competency in utilizing existing laws and regulations

MEAs & FISH TRADE • MEAs -- UNEP – CITES, 1975 – Ramsar Convention on Wetlands, 1975 – Montreal Protocol, 1987 – control on substances those deplete ozone layer – Basel Convention, 1992 – bans on hazardous waste and disposal – CBD, 1993 – FCCC, 1994 – reducing green house effect – Kyoto Protocol , 1997 – commitment on reducing green house effect – PIC, 1998 – allows stopping import of potentially toxic substance – Cartegena Protocol on Biosafety, 2000 – LMO restriction • WTO – Committee on Trade and Environment (CTE)

FAO MULTILATERAL AGREEMENTS IN FISHERIES • Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas, 1993 • Agreement for the Implementation of the provisions of the UNCLOS relating to the Conservation and Management of Straddling Stocks, 1995 • Code of Conduct for Responsible Fisheries, 1995

MEAs and WTO Obligation • WTO does not allow trade discrimination ØArticle I – MFN, not allow trade discrimination ØArticle III – focusing on the final product, national treatment of the “like” products limits preference on “green” products as well as the restriction in Montreal protocol and FCCC ØArticle XI – prohibits use of quotas, import licensing – conflict in applying MEA regulations

• WTO environmental exception ØArticle XX allows environmental exceptions for national laws against trade rule in order to üProtect human, animal or plant life or health üTo conserve exhaustible natural resources in conjunction with domestic production and consumption ØNeed evidences to justify the measures ØNon-discrimination between domestic and imported products ØScientific information on production and processing methodology is important.

Eco-labelling • WTO – like product • Production and process methods , PPMs for natural resource based products • Consumption externalities – Agreements on SPS, TBT • Production externalities – Non-product related – Article XX – MEAs • HACCP, ISO 9000, ISO 14001, MSC • Increasing cost, difficult among small-scale fisheries, market constraint

ROLE OF CIVIL SOCIETY • Small scale fish farmers/fishermen – Strengthen capacity in sustainable fishery resource management – Indigenous knowledge contribution – Monitoring – Strengthening community organization – Supportive legal instruments and enforcement

• Commercial fisheries – Development of information systems – Enhancing government capability in planning, management, monitoring, surveillance and enforcement • Fish traders and processors – Value added products to generate income and employment – Improved quality control, post-harvest technology

• Government – Optimum sustainable fishing - maximize resource rent, consumer surplus, and producer surplus – Support on CBFM – Legislative framework – R&D – Encouraging responsible fishing • NGO – Induced by problems on poverty and resource degradation – Enhancing community organization and their capability in effective resource management

APPROACH • Strengthening fishery management capacity – Trade liberalization – induces more resource exploitation – CBFM, indigenous in lack of scientific information for effective management – Increasing environmental awareness • Use of WTO provisions • Better resource utilization

• Collaboration among developing countries for trade negotiations • Market Access – reducing tariff escalation • Fisheries subsidy – No clear evidence of adverse impact in developing countries – Need of “non-actionable” subsidy for strengthening management capacity • Trade and environment – Better understanding on environmental impact (consumption as well as production externalities)

OVERVIEW ON PROGRAM IMPLEMENTATION • ASEAN – The Agreement on the ASEAN Food Security Reserve (AFSR) – AFTA – Strategic Plan of Action on ASEAN Cooperation in Food, Agriculture and Forestry 1999 – 2004 • Standardization on quality control measures and processing techniques, aquaculture practices, sanitary measures, regulations on biotechnology • Develop confidence in ASEAN exports as environmental friendly • Collaboration on negotiations in international forum • Technology transfer • Empowering rural communities through enhancing human development • Private sector networking • Management, sustainable utilization and conservation of natural resources

• SEAFDEC (Selected current programs) – – – – Center-wide Information Network Working Group on Regional Fishery Policy Program of Mangrove-friendly Aquaculture in SEA Responsible code of Conduct for Responsible fisheries Fish Trade and Environment Coastal resource Management Toward decentralized Management for Sustainable Fisheries in ASEAN Region – Resource Enhancement – Identification of Indicators for Sustainable development and Management of Capture Fisheries – Aquaculture for Rural Development

• ADB – Indigenous People • Sustainable Livelihood Development for the Poor Coastal and Small Island Communities Project – Indonesia ( Ministry of Marine Affairs and Fisheries) – The Bank’s Policy on Fisheries (http: //www. adb. org/documents/Policies/Fisher ies

• FAO – Bay of Bengal Large Marine Ecosystem Program (BOBLME) – Bay of Bengal Program – Inter-Governmental Organization (BOBP-IGO) – FISHCODE • UNEP – Small Island Development States Network (SIDSnet) – Global Program of Action for the Protection of Marine Environment from Land Based Activities (GPA) – International Coral Reef Action Network (ICRAN) – Resources for Civil Society and NGOs

• UNDP – Regional Cooperation Framework (RCF II, 2002 - 2009) – Participatory Action Research to Advance Governance Options and Networks (PARAGON) – Governance for Livelihood and Development (GOLD) – Gender Equality (APGEN) – Regional Initiative on Human Development Reports in Asia and the Pacific – Trade, Economic and Human Development – Supporting the Achievement of the Millennium Development Goals (MDG) – Pacific Sustainable Livelihood Program

THANK YOU