November, 2005 Edition

                                              What's Happening at the FCC

2005 Annual General Meeting & Conference

Russia - WTO Accession

Russia has applied to join the WTO. The FCC is working with International Trade Canada (ITC) and DFO to get agreement on acceptable fish tariffs. Significant progress has been made on some important items (e.g. shrimp – import duties to be reduced from the current 20% level to 5% level). Negotiations should be completed in 2006 with implementation beginning in 2007.

The FCC wants to repeat the experience with China’s accession to the WTO. Significant tariff reductions and accelerated implementation for some key products, proved very beneficial to the Canadian fishing industry. Since 2002, when China’s WTO reduced tariffs came into effect, our exports to China have increased rapidly to $300 million, making China our fourth largest export market.

South Korea – Bilateral Free Trade Agreement

FCC made a submission to International Trade Canada in support of the free trade negotiations with South Korea. Last year was the first year that South Korea was a net importer of seafood. This is mainly the result of reduced fishing opportunities on the high seas for its long distance fishing fleet. Despite prohibitive import tariffs in the mid-20% range, our seafood exports to South Korea have continued to increase significantly each year since 2000. Major products are lobsters ($16 million), shrimp ($5 million), eels ($4 million), crab ($3 million), mackerel ($2.5 million), and clams ($2 million).

Cooked & Peeled Shrimp - EU

The federal/provincial/industry shrimp working group had its first meeting. International Trade Canada’s Deputy Minister, Rob Fonberg, chaired the meeting. Larry Murray, Deputy Minister, DFO, participated. The working group is tasked to provide options to Ministers by the end of November. However, in view of some pending important meetings, it was agreed that certain targeted initiatives should begin immediately.

USA - COOL: Live Lobsters

The Food Marketing Institute (FMI) in Washington has been reviewing with US retailers the implementation of the US’s new Country of Origin Labelling regulations. The regulations allow signage for lobster tanks which state “Wild Lobsters: Product of US and Canada.” However, there are concerns about legalities when the tank contains lobsters from only the US or lobsters from only Canada. As such, FMI has suggested to retailers to get US live lobster suppliers to put Blue rubber bands on the lobsters that are printed with “Product of US” and Canadian suppliers to put Red rubber bands that are printed with “Product of Canada”.

The FCC is checking with USDA whether the following signage is sufficient to address the concern: “Wild Lobsters: Product of US and/or Canada” or “Wild Lobsters: May Contain Product of US and/or Canada”

Injected Fish Fillets

Injection of fish fillets is increasing in Canada. The meat and poultry industry have been doing it for a considerable time. As such, CFIA is developing a Labelling Policy for Meat, Poultry, and Fish Products with Added Water. The emerging consensus in CFIA is that injected products would have to declare “injected with”; or “Contains up to X% of (the name of the solution)” or “Contains up to X% of water.”

With the emerging consensus, CFIA’s seafood division decided to adopt the above as an interim policy and enforce it. However, CFIA’s meat and poultry divisions have no intention of establishing it as an interim policy until it’s finalized and discussed with their respective industries.

The FCC has advised CFIA that meat, poultry, and fish compete with each other in the marketplace. As such, the responsible direction is either (i) await the finalization of the policy or (ii) adopt an interim policy and enforce it equally among the competing food groups. In view of packaging costs, etc, the first option is preferable. CFIA has agreed to revisit the decision taken by the seafood division.

Health Canada – Mercury Advisory

Over the past year, Health Canada (HC) has been sampling fish and seafood available in the Canadian marketplace regarding mercury content. The analysis is complete and they are formulating an updated position and advisory on mercury. The FCC has discussed the situation with Health Canada, noting that the USFDA and the US Environmental Protection Agency are completing negotiations regarding an updated US position and advisory on mercury. As such, we advised that it is important for Health Canada to become involved in the US discussions before taking any final decisions so that perhaps we could have a North American position and advisory.

In addition, we referred HC to the recent Harvard study which demonstrated that the US government warnings against eating certain fish high in mercury caused more harm than good. The warnings on fresh &frozen tuna, swordfish, and sharks had an overall negative effect on the consumption of fish and seafood by Americans, resulting in reduced intake of important vitamins, omega -3, etc. In summary, the study found people overreacted to the advisory.

(Note: the FCC financially contributed to the Harvard study).

Climate Change – Fishing Industry Exempted

FCC is on the Minister of the Environment’s Climate Change Advisory Committee. The fishing industry is not classified as a Large Final Emitter and therefore has no targets under the Climate Change Plan. Vanessa Tveitane is our representative.

Key Meetings – November

BC Seafood Summit, Vancouver, BC - Industry leaders and senior officials from DFO, Ottawa and Pacific, and BC government officials meet to discuss & debate what we manage fisheries for and how to do it better.

2005 Seal Forum, St. John’s, NL – DFO, sealing industry, fishing industry, provincial/territorial, academic, animal rights, and conservation representatives meet to discuss, debate the 2006-8 management regime for seals.

NAFO Consultation Meeting, Halifax, NS – government/industry consultation to review the outcome of the 2005 meeting and prepare for upcoming NAFO committee meetings on NAFO reform and the reform of NAFO’s monitoring, control, and surveillance regime.

Fisheries Management/Economics

Owner-Operators

CCPFH hired Praxis Research to do an economic and demographic study of the Atlantic and Pacific fishing vessel owner operators. Below are some key findings: