A new paper has found that the EU Green Deal is diminishing member states fishing fleets competitiveness, increasing reliance on imports
Policy Options to Boost Competitiveness of EU Fisheries and Aquaculture Sector: Executive Summary
The European Union (EU), recognised as the world’s largest market for fishery and aquaculture products (FAPs), faces a critical juncture as concerns grow over the sector’s diminishing competitiveness and increasing dependence on imports.
One of the areas of concern is the EU Green Initiative, which is deemed to be restrictive and impacting the member states fishing fleets from being competitive with their global rivals. Another area of concern raised is the spatial squeeze caused by the rush to grab sea areas for offshore renewable developments. Researchers call on the European Commission to prioritise negotiations on access to UK waters post-2026 to mitigate economic losses.
The “Policy Options for Strengthening the Competitiveness of the EU Fisheries and Aquaculture Sector” paper overview presents key findings and policy recommendations derived from an in-depth study aimed at addressing the challenges and opportunities faced by the EU fisheries and aquaculture industry.
Background:
Over the past 15 years, the EU has grappled with a declining self-sufficiency rate, reaching a mere 38% in 2021. Imports, some from regions with lax conservation measures and questionable working conditions, pose unfair competition to EU producers adhering to stringent regulations. This study explores internal and external factors contributing to this lack of competitiveness and proposes policy options to rectify the situation.
Internal Factors:
- Regulatory Complexity: The EU’s comprehensive legislative framework covering fisheries, trade, food safety, labour, and environmental aspects adds complexity to the sector.
- Resource Restrictions: Increasing limitations on fishing fleet access and marine space for aquaculture, coupled with strict control measures, raise operating costs and limit supply.
- Market Regulations: The Common Market Organisation (CMO) imposes rigorous standards on EU FAPs, impacting their competitiveness in the global market.
- EU Green Initiatives: The European Green Deal (EGD) and 2030 Biodiversity Strategy, while global references, pose challenges to EU fleets, impacting their competitiveness.
- Generational Shift: The changing demographics in the sector, particularly in the extractive phase, negatively affect competitiveness.
External Factors:
- International Commitments: The EU’s leadership in ocean governance, multilateral conventions, and bilateral agreements influences its policies but may restrict its fleets’ activities internationally.
- IUU Fishing: Some foreign fleets engage in Illegal, Unreported, and Unregulated (IUU) fishing, impacting the quality and sustainability of FAPs entering the global market.
- Subsidies and Competition: Foreign operators enjoy comparative advantages due to less demanding legal requirements, subsidies, and, in some cases, engagement in IUU fishing.
Recommendations:
General Policy Recommendations:
- Equal Treatment: Imported FAPs must comply with EU conservation and management measures and internal product requirements.
- Consumer Labels: Introduce a label for non-EU FAPs to distinguish them in the market.
- Customs Uniformity: Enforce uniform customs rules and controls across all Member States to prevent substandard imports.
- Sustainable Agreements: Sign new Sustainable Fisheries Partnership Agreements (SFPAs) to reduce EU dependence on imports.
- Inspection Improvement: Strengthen inspections of non-EU establishments to ensure compliance with EU standards.
Case Study-Based Recommendations:
- Trade Measures: Consider imposing trade measures under the IUU Regulation for unregulated small pelagic fisheries in the North Sea.
- ATQ Exclusion: Evaluate excluding small pelagic species from autonomous tariff quotas (ATQs).
- Post-Brexit Negotiations: Prioritise negotiations on access to UK waters post-2026 to mitigate economic losses.
- Mixed SFPA: Explore the possibility of a mixed SFPA for enhanced legal certainty in Falklands operations.
- Hygiene Measures: Enhance safety and hygiene measures for specific non-EU products, such as pangasius.
- Environmental Benchmarking: Benchmark the environmental licensing system used in Norwegian aquaculture.
This executive summary provides a glimpse into the multifaceted challenges faced by the EU fisheries and aquaculture sector and outlines a strategic roadmap to fortify its competitiveness while maintaining global standards. The detailed study offers a comprehensive guide for policymakers, industry stakeholders, and the public to navigate the complexities of this crucial sector.