October, 2005 Edition

                                              What's Happening at the FCC

2005 Annual General Meeting & Conference

The Conference

The FCC Conference and AGM, Celebrating 60 years, was a great success. Delegates enjoyed beautiful Old Montreal, starting with the Chairman’s reception on Tuesday evening and ending with a breakfast session on Thursday morning. A hearty group of delegates continued, playing golf on the blustery Thursday afternoon.

The Board of Directors Meeting

The Board addressed a number of key issues and set “Next Step” directions for the FCC regarding Trade Policy/Market Access – European Union (cooked & peeled shrimp); the WTO Doha Round trade negotiations; Endangered Species; Highly Sensitive Marine Ecosystems (bottom impact gear sectors); Fisheries Management Renewal ; Owner/Operator Fleet Separation Policy; Straddling Stocks; and Member Recruitment.

An important component of the meeting was establishing key objectives for the FCC in 2005/6 in the FCC areas of excellence – Trade Policy/Market Access; Environment/Oceans Use; Fisheries Management/Economics; Inspection, International Fisheries; Industry Development & Communications. In developing the 2005/6 objectives the Board noted that fisheries responsibilities are spread over a number of federal departments – DFO, International Trade Canada, Agriculture & Agri-Food, and Environment Canada. In particular, the Board felt that DFO was losing contact with the economic factors, constraints, opportunities, etc. faced by the Canadian fish & seafood industry. One of the projects in the coming year will be to develop a targeted, readable brochure/pamphlet on our economics.

New Brunswick Truckers Blockade

In response to the 3-day blockade, the FCC contacted the RCMP Commissioner and the Attorney General outlining some of the costs experienced by Quebec and Maritime companies and their employees. Particularly hard hit were workers in plants shipping fresh seafood. With shipments halted, they were sent home. As well, companies making long term decisions where to produce products for the US market between their Canadian and US processing facilities take note of such disturbances. The message to the authorities is that delays in taking action have real short -term and long term costs.

Patrick McGuinness elected 2006
Chairman of the International Coalition of Fisheries Associations (ICFA) and Treasurer of the International Association of Fish Inspectors (IAFI)

ICFA is an association of 17 national fisheries associations from North America, Western and Eastern Europe, Scandinavia, and ASIA. In 2006, ICFA will be working closely with the FAO’s Fisheries Division regarding its work on bottom trawling and high seas fisheries, technical guidelines for fisheries marine reserve areas, and a memorandum of understanding between the FAO and CITES regarding endangered species reviews concerning commercial fish and seafood species.

IAFI allows the FCC to maintain excellent, collegial working relations with senior government inspection officials from a wide range of countries. This has proved effective with the EU (cadmium in lobsters) and the USA (bioterrorism – exempt non –processing fishing vessels) as recent examples.

KEY Meetings - October

EU Shrimp Working Group. This group of federal and provincial officials and industry representatives has recently been struck to develop strategies to get the European Union to improve the market access for cooked and peeled shrimp. The Deputy Ministers of International Trade Canada and DFO will co-chair the first meeting.

Expert Committee on Food Safety, Ottawa. This committee meets on an annual basis to review emerging food safety issues in order to provide an early warning advisory to the Canadian government and, where appropriate, suggest possible strategies to address the issues. Aquatic Animal Health Committee, Ottawa. This Committee is charged with helping CFIA and DFO implement Canada’s new National Aquatic Animal Health Program which applies to nationally reportable diseases in aquatic animals. The aim is to have a program that meets the international and Canadian trade requirements while maintaining a competitive Canadian fish and seafood industry and ensure healthy, sustainable, aquatic recourses.

Can-Trace Steering Committee, Conference Call, Ottawa. This committee is attempting to develop product traceability models that are acceptable to major food retailers and distributors and useful to processors. The objective is to have models that are somewhat similar across the various food sectors but take into account the uniqueness of the sectors.

Fisheries Management

Fisheries Act

Fisheries Renewal was one of the six priorities Minister Regan identified in his report to Cabinet that he will pursue in 2005/6. He received funding allocation for the initiative in the 2005 Federal Budget. Minister Regan wants to table proposed amendments in November in Parliament. The renewed Fisheries Act will have 6 key elements: Governance; Allocation; Licensing; Fisheries Co- Management; Administrative Sanctions; and Habitat Management. Below are some key issues:

  • The Minister will retain authority over access, allocation; fleet/group shares. However, an “allocation instrument” will be introduced which will establish a process for making allocation decisions, including allocation principles, a legal instrument to establish allocations in excess of the current 9 year maximum; and authority to establish advisory body(ies) to hold public consultations in order to provide public recommendations on allocation issues.

  • Provide for the Minister to enter mutually legally binding co-management agreements,

  • Provide for administrative sanctions to address fishing license infractions.

    Preservation of the Independent Inshore Fleet in Atlantic Canada/Trust Agreements

    Before tabling the revised Fisheries Act, Minister Regan wants to establish an updated owner operator/fleet separation policy. A proposal has been developed, the key elements are:

  • establish a new license holder category – “independent core status”;

  • independent core license assigned to existing core harvesters not subject to a controlling agreement (i.e. trust agreement);

  • license transfer privileges and any new privileges introduced would be available only to the independent core status harvesters;

  • harvesters involved in current controlling agreements would have 3/5/7 years to convert to independent core status or their licenses would be permanently non-transferable;

  • independent core license status could be issued to a corporation owned 100% by the independent core harvester.

    Discussions have indicated that various harvesters and harvesting groups have significant difficulties with the above proposed approached.

    Inspection/Technical

    Change in US Labelling Rules

    With respect to US food labelling, there are two significant changes that become effective January 1, 2006 - mandatory allergens and trans fat labelling. Regarding to trans fat, USFDA, however, is about to issue a guidance document concerning an extension to the deadline. Factors to be considered in the extension request are: 1) whether the product contains 0.5 grams or less of trans fat; 2) reasons for the request; 3) the number of existing labels that the firm is requesting to use; 4) the dollar amount of the labels in 3); and 5) the estimated amount of time to exhaust the existing label stock.

    As trans fat is not a significant health issue, the FCC expects USFDA to look for a seamless transition (i.e. not cause industry major headaches).

    Note: The upcoming mandatory Canadian nutritional label requires a trans fat declaration.

  • Article Disclaimer: Abridged