Policy Options Explored to Enhance EU Fisheries Sector Competitiveness

Policy Options Explored to Enhance EU Fisheries and Aquaculture Sector Competitiveness

A comprehensive study conducted by a consortium of experts from AZTI, Universidade Da Coruña, and Université De Bretagne Occidentale sheds light on the challenges facing the European Union’s (EU) fisheries and aquaculture sector, offering policy options to bolster its competitiveness.

The EU, boasting the world’s largest market for fishery and aquaculture products (FAPs), has witnessed a concerning trend of increasing dependence on imports over the past 15 years. This decline in self-sufficiency, reaching only 38% in 2021, raises alarms about the sector’s competitiveness in meeting internal market demands.

One of the primary concerns highlighted in the study is the unfair competition faced by EU producers due to less stringent conservation and management measures, hygiene standards, and working conditions in some exporting countries. This discrepancy in regulatory frameworks and production costs provides external operators with a competitive advantage, posing a challenge to domestic producers.

Internal factors contributing to the sector’s lack of competitiveness include stringent regulations governing fishing activities, limited access to marine space for aquaculture, and trade regulations under the Common Market Organisation (CMO). Additionally, generational shifts in the sector and ineffective customs controls exacerbate the challenges faced by EU producers.

Despite these hurdles, the study identifies several structural elements that can enhance competitiveness, such as promoting energy-efficient processes, selective fishing methods, and environmentally friendly aquaculture practices. Moreover, the European Maritime, Fisheries and Aquaculture Fund (EMFAF) offers opportunities for improvement, provided funds are utilised effectively to enhance productivity and value-added processes.

Externally, the EU’s leadership in ocean governance through multilateral conventions, bilateral agreements, and participation in Regional Fisheries Management Organisations (RFMOs) underscores its commitment to sustainable fisheries. However, challenges persist with foreign fleets engaging in illegal, unreported, and unregulated (IUU) fishing activities, poor working conditions, and suboptimal product quality.

To address these challenges, the study proposes a range of policy recommendations. These include better implementation of the Common Fisheries Policy (CFP), coordination between trade and fisheries policies, stricter customs controls, and the establishment of Sustainable Fisheries Partnership Agreements (SFPAs) to reduce import dependency.

Furthermore, the study suggests specific measures based on case studies, such as imposing trade measures under the IUU Regulation for unregulated small pelagic fisheries and renegotiating access to UK waters post-2026.

In conclusion, the study emphasises the need for a concerted effort to strengthen the competitiveness of the EU fisheries and aquaculture sector while ensuring a level playing field for domestic producers. The full study, containing detailed policy recommendations, is available for download, providing valuable insights for policymakers and stakeholders alike.

Recommendations on policy adaptations

Based on the evidence reviewed, a number of general policy recommendations are set out below, as well as a number of more specific policy recommendations based on the four case studies:

General policy recommendations

• Better implementation of the CFP should lead to equal treatment of imported FAPs and EU products by requiring that all imported products comply with EU’ s conservation and management measures and internal product requirements.
• In addition to the existing EU fish and aquaculture consumer labels, another label should be created for FAPs from non-EU countries, for both fresh and processed products distributed in the EU (including the HORECA channel). This would allow consumers to distinguish between EU and non-EU FAPs.
• In the case of imported products, it should also be made compulsory to label fishery products with the name of the State under whose flag the catching vessel sailed.
• Strengthen coordination between the EU’s trade and fisheries policies, in particular when negotiating trade agreements that include fisheries-related issues. In this respect, it is considered essential to analyse the economic and social impact of Free Trade Agreements (FTAs) on the EU fisheries and aquaculture sector, to establish appropriate safeguard measures where necessary and to treat certain FAPs as sensitive products.
• Ensure greater uniformity in the application of customs rules and identical customs controls
• in all Member States to prevent non-EU operators from using points of entry with fewer controls to import goods that do not meet EU standards.
• New Sustainable Fisheries Partnership Agreements (SFPAs) should be signed to reduce the dependence on imports of FAPs into the EU.
• Products from non-EU countries that do not have fully guaranteed domestic food safety legislation and control mechanisms equivalent in effect to those applied in the EU, should be denied access to the EU market.
• The programme of inspections in non-EU countries should be improved by strengthening the missions of the Food and Veterinary Office by increasing the number of inspections carried out by this Office in establishments authorised to carry out inspections in the country of origin or even in a non-EU country.
• Reactivate cooperation with China through the already established but dormant Blue Partnerships to improve international maritime governance in the fight against IUU fishing.
• Improve the collection of trade data, in particular for processed products from outside the EU, so that authorities can accurately trace the origin of the product and all other intermediate
• steps until it reaches the final consumer.
• Ensure that all Member States are signatories to every international agreement adopted in the field of the fight for decent working conditions in the fisheries and aquaculture sector, covering the entire production process including logistics and processing.
• Encourage a more comprehensive use of EMFAF resources by all Member States through:
  • promoting careers in the sector;
  • promoting lesser known species with low demand;
  • identifying new consumption habits and new potential fish presentations;
  • the potential of niche markets in the EU for domestic production;
  • the development of a more energy-efficient and productive fisheries and aquaculture sector.
• Strengthen efforts to add value to the products, in particular through geographical indications, use of sustainable practices, innovative products or other means that can differentiate the product and obtain a price premium in some niche markets.

Recommendations based on case studies

• As the small pelagic fisheries in the North Sea can be considered unregulated due to the lack of cooperation between coastal States as expected under UNCLOS, the EU could eventually impose trade measures under the IUU Regulation (1005/2008).
• Consider whether small pelagic species such asherring should be excluded from ATQ schemes.
• Renegotiate access to UK waters, particularly in the light of the post-2026 situation.
• Explore the possibility of a mixed SFPA, which could provide greater legal certainty for EU fishing companies operating in the Falklands.
• Strengthen safety and hygiene measures for pangasius and similar non-EU products (e.g. by increasing the inspection rate to 50%, as for Indian shrimp products).
• Investigate production methods in exporting countries, including for Norwegian products processed in non-EU countries.
• Restrict imports of Russian products, not just the removal of any duty-free or most-favoured nation treatment. Maintain some state aid framework to adjust to the ongoing geopolitical unrest, in particular the level of energy prices.
• Benchmark the environmental licensing system used in Norwegian aquaculture.