An economic analysis of illegal, unreported and unregulated (IUU) fishing: Key drivers and possible solutions

The fight against illegal, unreported and unregulated (IUU) fishing activities has recently become a high priority in the international fisheries management agenda. While a number of academic contributions have sought to improve the understanding of the problem, most remain limited in scope. To help policy makers obtain a more comprehensive picture of the situation, the OECD Committee for Fisheries recently completed a study addressing the full economic dimensions of IUU fishing in an integrated manner. This paper presents the analytical framework developed by the OECD as well as some of the key results of the study regarding the causes of and the potential solutions to this widespread problem.     

Taiwan's response to international fisheries management after 2005 as influenced by ICCAT and fishers' perception

It is widely recognized that fishing states are obliged to exercise flag state responsibility over their vessels. In an attempt to become a responsible fishing actor, Taiwan has endeavored to manage its distant water fishing fleet in accordance with international fisheries management. However, the long-standing problems of illegal, unreported and unregulated (IUU) fishing, fish laundering, and fishing overcapacity, which remained unsolved during the 1990s and early 2000s, brought its management capability into doubt. Failure to address these problems undermined the credibility of all management measures and ultimately resulted in a recommendation adopted by International Commission for the Conservation of the Atlantic Tunas (ICCAT) in 2005. This recommendation significantly affected Taiwan's distant water fishing policy. This paper examines how Taiwan assimilated this outside force into its fishing policy as a new response to international fisheries management and how fishers perceived this response. It shows that Taiwan's efforts in controlling distant water fisheries marked a big change, specifically manifest in three noticeable actions - reducing excessive bigeye-targeted efforts, deterring IUU fishing, and strengthening fisheries management. The study advises that management of small tuna vessels be effectively exercised and recommends future actions on providing subsidies for fishers to partially offset costs incurred by rule compliance, streamlining their administrative work, enhancing communication with them, putting more enforcement and meaningful penalties in place. Finally, the study indicates the existence of an interaction in the international fisheries management scheme, potentially favoring Taiwan to bargain for fishing rights and a favorable status in the participation of regional fisheries management organizations (RFMOs) in the future if it continues to exercise effective control of distant water fisheries.     

The EU restrictive trade measures against IUU fishing

The opportunities for operators to increase their revenue when illegal, unreported and unregulated (IUU) fishing catches are converted to currency through the market encourage the persistence and growth of this activity. It is often the same market that is targeted for the legal trade of fish. Thus, paradoxically, the market demand creates and incites it, at least from an economic point of view. To deter IUU fishing activities, some fish and fishery products importing countries have started to enact or implement additional regulatory measures, the goal of which is to tackle the problem from a new trade-related perspective. This contribution provides an analysis of various aspects of the market state competence. Within the framework of the European Union (rights and markets) the study analyses the emergence of regional trade-related measures and explore how they are linked to the international trade law regime especially the World Trade Organization rules. Finally, the paper draws implications for the market state measures and considers their limits and potential in combatting IUU fishing.     

Potential ecological and social benefits of a moratorium on transshipment on the high seas

One way that illegal, unreported, and unregulated (IUU) fish catch is laundered into the seafood market is through transshipments at-sea. This practice, which often occurs on the high seas (the areas of ocean beyond national jurisdiction), allows vessels fishing illegally to evade most monitoring and enforcement measures, offload their cargo, and resume fishing without returning to port. At the same time, transshipment at-sea can facilitate trafficking and exploitation of workers who are trapped and abused on fishing vessels. This study gives an overview of high seas transshipment as well as evaluates transshipment at-sea regulations across 17 Regional Fisheries Management Organizations (RFMOs), which are responsible for regulating fisheries on the high seas. Transshipment at-sea regulations have become increasingly strict in most RFMOs since the late 1990s. However, only five RFMOs have mandated a partial ban, and only a single RFMO, the South East Atlantic Fisheries Organization (SEAFO), has mandated a total ban on transshipment at-sea. A total ban on transshipment at-sea across all RFMOs would support the ability of oversight and enforcement agencies to detect and prevent IUU fishing and also likely reduce human trafficking and forced labor on the high seas.     

The 1995 FAO Code of Conduct for Responsible Fisheries: Adopting,implementing or scoring results?

The paper presents the results of a major assessment of Code adoption and implementation in nine fishing countries in Asia (China, Thailand, Vietnam), Africa (Senegal, Guinea Bissau and Guinea) and in the Caribbean (Jamaica, Dominican Republic and Trinidad & Tobago), which are part of the international research project ECOST. The main findings are that the Code as an international policy instrument remains relevant and adaptable to the current international fisheries context, and that its guiding principles and provisions have been endorsed and adopted in almost unanimous fashion by the countries covered, and integrated into fisheries policy letters and legal frameworks. However, results also suggest that tackling the truly difficult issues in fisheries, such as combating illegal, unreported and unregulated (IUU) fishing or adjusting fishing overcapacity has been a lot less successful. The design and implementation of necessary measures often remains very weak in domains with important economic and political dimensions. The causes for this are attributed to a mix of administrative inertia, lack of political will and stamina, and short-sighted economic considerations.     

Overcoming complexity in illegal,unregulated and unreported fishing to achieve effective regulatory pluralism

Globally, illegal, unregulated and unreported (IUU) fishing challenges economic development, as well as food and human security, and has done so for many years. Despite the implementation of legal responses to IUU fishing by the international community and many States, the problem continues. While political will, the vastness of oceans and limited human and financial resources hamper the effectiveness of these responses, fragmentation has also prevented effective control. IUU fishing is addressed by legal controls across fishing, shipping, labour and criminal law and existing research on IUU fishing has tended to focus on individual aspects of these, yet evidence indicates their interconnectedness. This research addresses a gap, critically analysing the range of international legal frameworks together. Within this context, this paper explores and analyses the how fragmentation of legal instruments, lack of interaction between actors and regimes, and piecemeal implementation of the law limits the control of IUU fishing drawing on the concept of regulatory pluralism to appropriately address the challenges.     

Assessment of IUU fishing for Southern Bluefin Tuna

Illegal, unreported and unregulated (IUU) fishing is recognized as one of the largest threats to the sustainability of the world's fisheries. This paper focuses on IUU fishing in the context of unreported catches by members or co-operating non-members of regional fisheries management organizations (RFMOs) and their implications for scientific assessments of stock status and management advice. A review of Japanese market statistics was undertaken in 2006 by an independent panel in relation to catches of southern bluefin tuna (SBT). Based on this review, the Commission for the Conservation of Southern Bluefin Tuna (CCSBT) concluded that very substantial and continuous unreported catches of SBT had been taken by longline vessels since at least the early 1990s. While uncertainty exists about the fleets contributing to these IUU catches, the assumption used within the CCSBT Scientific Committee is that a significant proportion of these were taken by Japanese longliners. Implications of these unreported catches for the stock assessments by RFMOs are discussed in light of the central role that Japanese vessel reported data have in the assessment of the world's tuna and billfish stocks. Results indicate that it is plausible that the unreported catches of SBT stem from the misreporting of catches as other tuna species and/or the location of fishing effort. The magnitude and extended period of the unreported SBT catches highlight the wide-spread risks of relying on fishery dependent logbook data in the absence of verification. An urgent need exists for minimum standards of verification of catch, effort and landing statistics for use in scientific assessments. The fisheries science community needs to be more pro-active in the development of such standards and the implementation of independent monitoring and verification. In addition, there is a need to reform the operation of the scientific bodies of RFMOs in terms of transparency, the treatment of uncertainty and the burden of proof if they are to be effective in providing objective scientific advice consistent with the intent of international agreements.     

Trade measures and the combat of IUU fishing: Institutional interplay and effective governance in the Northeast Atlantic

The use of trade measures to combat illegal, unreported and unregulated (IUU) fishing in the Northeast Atlantic has evolved from unilateral denial of the landing of fish taken outside international quota arrangements to a multilateral Scheme of Control and Enforcement under the North-East Atlantic Fisheries Commission (NEAFC). International trade rules have not constrained this development, mostly due to successful management of the interplay between international resource management and trade regimes. States protect resource management objectives from such constraint by inserting clauses that establish a normative hierarchy, or they employ various means for adapting IUU measures to the ‘environmental window’ of the global trade regime. The fact that regional states have introduced trade restrictions only when non-restrictive or less restrictive measures have failed enhances such compatibility, as do the gradual shift from unilateral to multilateral measures and the rise in transparency, openness and target-state involvement. None of those features reduces the effectiveness of regional trade measures; they minimize tension with trade commitments and largely strengthen their clout in the struggle to combat IUU fishing in the Northeast Atlantic.     

Policy responses to IUU fishing in Northern Australian waters

Illegal, unreported and unregulated (IUU) fishing activities continue to thrive in the northern region of Australia's Fishing Zone (AFZ). Indonesian fishermen involved in IUU fishing in this area target specific marine species such as shark, reef fish, sea cucumber and trochus that are destined for the Asian market. Many of these marine species’ stocks are now at critical levels. Local communities based in Northern Australia, state and Federal governments are also concerned with issues of border security and quarantine measures that coincide with the IUU fishing activities. Whilst Australian and Indonesian governments continue to negotiate this pressing issue, international instruments, bilateral agreements and domestic policies are not deterring Indonesian fishermen from pursuing IUU fishing activities in the AFZ.     

Rights-based management in the Western and Central Pacific Ocean tuna fishery: Economic and environmental change under the Vessel Day Scheme

Defining, strengthening and enforcing rights over fisheries resources is frequently identified as central to overcoming ‘the tragedy of the commons’ and associated environmental and economic challenges in fisheries systems. Though economic theory generally suggests that output control (e.g. quotas) creates the strongest incentives for efficiency and conservation, input controls (e.g. on effort) remain common. This paper explores the rationale for, and implications of, employing a transferable effort scheme in one of the largest and most valuable fisheries. In 2007, eight Pacific Island countries implemented the Vessel Day Scheme with the aims of strengthening their rights over tuna resources and control over economic and environmental trends. Four years since implementation, the scheme has significantly increased economic returns for the island states and generated improvements in data reporting. However, it has not generated a firm limit on fishing effort and its structure has made it difficult to directly target the biological concerns of individual species within the multi-species fishery. In the future, outcomes of the Vessel Day Scheme will continue to be tempered by the structural limitations of effort-based regulatory scheme, market conditions in the sector and the willingness of firms and island states to clarify, abide by and enforce the technical components of the scheme.     

Precious coral fisheries management in Taiwan—Past,present & future

Taiwan used to have the biggest precious coral fisheries industry in the world. However, due to changes in the fishery, including increased fishing restrictions and the replacement of obsolete vessels, the scale of the industry had been gradually reduced since 1979. Unfortunately, the initiative proved to be poorly managed and resulted in an increase in illegal, unreported and unregulated (IUU) coral fishing. This forced the government to review and amend the precious coral fisheries management regulations, which had been in place for decades. The Taiwanese government introduced stringent monitoring, control and surveillance (MCS) management methods, already used in deep water fisheries, as a precautionary approach. At the same time, an investigation and evaluation of existing resources was carried out. Together, these initiatives were introduced in order to encourage the domestic industry to adopt the concept of ecosystem-based fishery management.     

The potential compatibility of offshore wind power and fisheries: An example using bluefin tuna in the Adriatic Sea

Given the increasing competition for marine resources, regulatory strategies that benefit multiple stakeholders are increasingly important. Offshore wind power generating facilities are becoming more common in the marine environment and alter the characteristics of the fisheries in the surrounding area. Floating wind turbines can act as fish aggregating devices (FAD), thereby increasing the catchability for some species. Many marine recreational fisheries are open access without effort restrictions; therefore, control of total harvest is difficult. Creating a limited entry recreational fishery and excluding commercial fishing from the area surrounding offshore wind turbines may aid in controlling total harvest and may benefit several important stakeholder groups: (1) recreational and commercial fishermen in terms of higher recreational catch rates and potentially higher overall yield, (2) fisheries managers in terms of more precise control of recreational fisheries harvest, and (3) owners of offshore wind power facilities in terms of reduced risk of damage to infrastructure due to fishing activity. We discuss the compatibility of wind power facilities and fisheries, conditions conducive to this compatibility, and provide an example from a proposed offshore wind power facility in the Adriatic Sea and its potential to affect the fisheries management there, particularly for bluefin tuna (Thunnus thynnus).     

Estimation of fisheries removals and primary economic impact of the small-scale and industrial marine fisheries in Colombia

Colombia has coasts on both the Atlantic and Pacific Oceans, but its marine fisheries are limited by the relatively small size of commercially important stocks. However, diverse fishery resources have traditionally been exploited by coastal communities, and industrial fisheries have grown in recent years with the intensification of tuna fishing in both oceans. The management of Colombia's fisheries has been hampered by frequent administrative changes, which has notably led to the disappearance of a part of the official landings data. We estimated total fisheries removals (reported plus discards and unreported catches) in the Colombian Atlantic and Pacific Oceans for the period 1950–2006. We used secondary sources of information to estimate missing data, and we estimated subsistence fishing and the unreported by-catches of the shrimp and tuna fisheries. We used available information on seafood prices to estimate the relative economic impact (gross revenues) of the small-scale and industrial sectors for the period 2000–2006. Our results suggest that for the period 1950–2006, the Colombian marine fisheries catches may have been almost twice the landings reported by FAO on behalf of the country (2.8 times higher in the Atlantic; 1.3 times higher in the Pacific). Although the total gross revenues of industrial fisheries were higher than those of the small-scale sector, the latter commanded higher gross revenues in the Atlantic in 2006.     

The structure of tuna access agreements in the Western and Central Pacific Ocean: Lessons for Vessel Day Scheme planning

The tuna industry in the Western and Central Pacific Ocean (WCPO) is one of the largest and most valuable fisheries in the world. Since the 1980s, Pacific island countries have used licensing agreements with foreign fishing interests—known as access agreements—to earn tuna-related revenue and control the environmental impacts of fishing, with only minimal success. To date, there has been little work detailing the structure of access agreements and assessing how this structure relates to economic and environmental outcomes in the sector. This article helps to fill this gap by providing an overview of various access structures and a detailed empirical assessment of how these structures are applied in access agreements between Pacific island countries and the major foreign fishing interests active in the WCPO. This analysis is placed in the context of evolving regional fisheries management structures. The study reveals that while there is no uniform formula for access agreements, each structure is subject to distinct political, economic and environmental considerations that influence outcomes for Pacific island countries. As Pacific island countries develop the mechanism to allocate fishing rights under the new Vessel Day Scheme, drawing on their long history with access agreements will assist efforts to use access to achieve policy objectives. Improved transparency will enable Pacific island countries to identify successes and problems and adapt the Vessel Day Scheme allocation mechanisms accordingly.     

Economic gains of liberalising access to fishing quotas within the European Union

This paper analyses the extent to which specialisation gains can be achieved by liberalising access to fishing quotas within the European Union (EU). Fishing quotas are today exchanged between EU member states at a rate of 4% of total turnover in EU fisheries. Germany, Belgium, Denmark and the Netherlands are the most active. Only one fourth of these exchanges are permanent. With the management systems in EU fisheries differing among countries, comparative advantages in fisheries exist in member states with the best management practices. Hence, although positive but small specialisation gains exist in EU fisheries today, these gains might potentially be increased by liberalising access to fishing quotas and allowing transferability of quotas between individuals from different countries on a permanent basis. Increasing the gains might, however, affect relative stability.     

Global scope and economics of illegal fishing

We present a conceptual model for the analysis of the costs and benefit aspects of the risk inherent in illegal, unreported and unregulated (IUU) activity. We then develop and present a map of IUU incidences as reported in the Fisheries Centre's Sea Around Us project IUU global database. This map shows that IUU activities are quite widespread geographically. We next present an analysis of the cost and benefit aspects of risks of IUU fishing. A key result of the study is that for the cases analyzed as a group; the expected benefits from IUU fishing far exceed the expected cost of being apprehended. For an assumed 1 in 5 chance of being apprehended, our calculations show that reported fines for the vessels apprehended will have to be increased by 24 times for the expected cost to be at least as much as the expected benefits.     

Evaluation framework for regulatory requirements related to data recording and traceability designed to prevent illegal, unreported and unregulated fishing

In 2001 FAO published the “International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing”. Based on this plan, national and supranational authorities have developed legislation to fight the so called IUU fishing. A key aspect of the legislation proposed so far is the mandatory recording of some data elements and the requirement that these data should be available for access through a traceability system. This article outlines a general framework for evaluation of these types of requirements, using a predictor-outcome N-way matrix. A “good practise” system is described, against which the existing systems and practises can be evaluated. The framework can be used to assess if the regulatory requirements ensure that the relevant IUU fishing identification data are made available, and it can also be used to evaluate the requirements imposed on the traceability system.     

Lessons for fisheries management from the EU cod recovery plan

The performance of the EU long-term management plan for cod stocks, in force since 2009, is analysed focusing on the human and institutional factors. The plan operates through landings quotas (TACs) and effort restrictions following a Harvest Control Rule, and deploys a novel instrument allowing Member States to ‘buy back’ or increase fishing effort for fleet segments engaged in cod-avoidance measures. The stipulated fishing mortality reductions have not been achieved. On the positive side, the ‘buy-back’ instrument has led to increased uptake of selective gear and implementation of permanent and real-time temporary closures. On the negative side, ignoring the dimension of fishers as reactive agents in the design, the impact assessment, and the annual implementation of the measures has contributed to the failure to adequately implement the plan and achieve its objectives. The main problem is that the landings quotas taken in a mixed fishery did not limit catches because fishers were incentivised to continue fishing and discard overquota catch while quota for other species was available. The effort limitations intended to reduce this effect were insufficient to adequately limit fishing mortality in targeted fisheries, although fishers experienced them as prohibiting the full uptake of other quotas. Recommendations for future plans include (i) management through catch rather than landings quotas, (ii) the internalisation of the costs of exceeding quotas, (iii) use of more selective gear types, (iv) the development of appropriate metrics as a basis for regulatory measures and for evaluations, (v) participatory governance, (vi) fishery-based management, (vii) flexibility in fishing strategy at vessel level.     

Assessing the sustainability of subsistence fisheries in the Pacific: The use of data on fish consumption

Coastal fisheries in Pacific island countries are characterised by a strong predominance of catches for subsistence purposes which involves mainly finfish and is difficult to quantify. In 1997–1998, a consumer survey conducted in the Northern Province of New Caledonia (Southwest Pacific Ocean) made it possible to indirectly estimate subsistence fishing production. Catch from subsistence fishing did not result in a significant change of the exploitation potential. The catch composition of subsistence fishing differed significantly from commercial fishing, with a higher proportion of species less vulnerable to exploitation. Interpretation of the consumer typology highlighted the importance of factors such as ethnic group and geographical location in explaining eating habits and therefore, indirectly, fishing behaviours. These results suggest that this fish consumption survey could assist in the design of subsistence fisheries monitoring programmes.