MercoPress. South Atlantic News Agency

Fisheries News.

Headlines:Strong Chilean peso punishes fishing industry; Vigo will host European Fishing Resources Agency; NZ Antarctic vessels join voluntary satellite monitoring; Massive increase for Brazilian Fisheries Department budget; EU country members can subsidise fishing companies; Las Palmas seeks agreements with Chinese fleet;

Strong Chilean peso punishes fishing industry Chilean exporters are increasingly concerned with the drop in the value of the US dollar that now stands below the 600 pesos benchmark. Contrary to all predictions, the greenback plummeted from Chilean pesos 730 to below 600 in the second half of the current year. Chilean economists believe the downward trend will continue and some estimate that the US dollar could drop as low 550 pesos in 2004. Ronald Brown, president of the Exporters Association (Asoex) said that the drastic and unexpected drop in the US dollar means that exporters are receiving less revenue in Chilean pesos thus making their businesses less profitable. The downward tendency already has seen a contraction in investments since local products are less able to compete in foreign markets. Mr. Brown warned that in the long run this will lead to an increase in the country's already high unemployment rate, and will discourage potential exporters. The extractive fishery industry, one of the main export sectors, has estimated that with the US dollar standing at 600 Chilean pesos in 2004, revenue will drop by 29,000 million Chilean pesos equivalent to 48.3 million US dollars compared to 2003. This is almost two thirds of the amount that companies had planned to reinvest in their plants next year, said the general manager of the National Fishing Association (Sonapesca), Cristián Jara. The effects on the salmon industry, however, are different. According to the Salmon Industry Association (SalmonChile), its costs structure and the increase in international trout and salmon product prices mean that the fall in the dollar this year has not had a strong influence on sector activity. The sector's estimation of 1,2 Billion US dollars in revenue, has therefore remained unchanged. Chilean salmon industry production costs structure depends heavily on the US dollar (almost 70%), so if the dollar drops, costs also experience a decline. The Chilean export sector is strongly lobbying the authorities to do something about the downward tendency of the American currency in local money markets. However Rodrigo Díaz Cost Studies manager for the Manufacture Exporters Association (Asexma) warned that exporters have to make sure that any change in the current rules made does not affect profitability. "Their business is to send products abroad, not speculate," he said. Mr. Díaz believes that exporters should first appeal to insurance contracts in the future money exchange market, thus ensuring the value of the US dollar, with debts and sales operations in the US currency, as the Chilean salmon industry has been doing. Matching the value of exports with credits and costs leaves any risk from a drop in the value of the US dollar. (FIS/MP).-

Vigo will host European Fishing Resources Agency

The city of Vigo, in Galicia will host the headquarters of the European Fishing Resources Agency, a new department of the European Union that aims to guarantee a more efficient use of the EU and its member countries' resources regarding the inspection and surveillance of fisheries. Last weekend Spanish president José María Aznar announced that works in Vigo will begin during the first few days of 2004, since the new body will become operational within the first three months of next year. The aim of the European Fishing Resources Agency is "to organise and establish inspection and surveillance methods based on European strategy", explained the European Commission in a release. Brussels considers this "crucial" as it guarantees that rules and regulations are applied evenly throughout the EU. The Agency's authorities ? around 50 officials and several inspection teams dependant from the European government ? will prioritise the most threatened populations. They will also create "specific and transparent" follow-up programmes to promote cooperation and coordination among member states and the EC. So far fisheries inspection and surveillance activities are the responsibility of member states even though fisheries are an EU policy. The new office in Vigo will harmonise control measures and create inspection teams made up of technicians from various countries to objectively supervise fish landings. "The effectiveness of our policies have been compromised for a long time due to non-compliance with norms and regulations," stated the EU Fisheries Commissioner, Franz Fischler, when he originally proposed creating such an agency back in March 2003 to "put an end to the disorder" existing in fishing resources control systems. The Galicia government and the fishing sector are more than satisfied with the announcement highlighting that this confirms Galicia as the main fishing province in the EU. Manuel Fraga Iribarne, president of the Galician government said the EC's decision is also a reward for the work carried out by the Spanish and Galician governments in the aftermath of the Prestige disaster. (FIS/MP).

NZ Antarctic vessels join voluntary satellite monitoring

New Zealand fishing trawlers are to join a voluntary trial run of a new satellite monitoring system of Antarctic fishing vessels. The system has been proposed by Australia after one of it's patrol boats was engaged in a 21-day chase of a Uruguayan-flagged vessel suspected of fishing Patagonian toothfish illegally in Australian territorial waters. The chase of the Viarsa was eventually joined by two more patrol boats, from the UK and from South Africa, and cost the Australian Government around AUD 5 million. Australia had originally proposed to members of the Convention on the Conservation of Antarctic Marine Living Resources (CCAMLR) that satellite monitoring be made compulsory; a move backed by New Zealand and the US, but this proposal was blocked by Argentina. The Government of Argentina said that they were unwilling to have the movement of their ships monitored because of the long-standing conflict with the UK Government over the administration of the Falkland Islands/Malvinas. Despite this setback, arrangements have been made for a voluntary tracking trial that will include boats from New Zealand, Australia, South Africa, Ukraine, United States, Uruguay and Argentina. Head of New Zealand's Antarctic policy unit, Trevor Hughes, told the media that the Government had been very disappointed by Argentina's stance, and were also surprised at the interest shown by members in fishing the whole range of CCAMLR's new and exploratory fisheries. Countries have to indicate how many vessels will be placed in which fishery ahead of the CCAMLR meeting. In the previous season five countries had nominated 15 vessels to operate in the main Ross Sea area, 13 of which were approved and nine went fishing. This year, however, 13 countries have nominated 32 vessels for the same area, and 26 of these vessels have been approved. Of the nine vessels that went fishing last year, six of them were from New Zealand, and permission has been granted for another six boats for this year, although only five are expected to go, according to the New Zealand Press Agency. Other countries involved in the season include Namibia, with three boats, Argentina, Russia, South Africa, South Korea, Spain, the United States, and Uruguay, all with two boats each, and the UK, Japan and Norway with one boat each. The amount of Antarctic toothfish that can be extracted has been dropped by the CCAMLR from 3,760 to 3,250 tonnes for the current season. Specific localities will have designated total allowable catch limits, and once these are reached vessels will have to quit the site, Mr Hughes explained. (FIS/MP).-

Massive increase for Brazilian Fisheries Department budget

During 2004 the Brazilian government will grant the Aquaculture and Fisheries Department (SEAP) a budget of BRL 75 million (USD 25.5 million), which is 18.7 times higher than the current BRL 4 million. The additional resources are intended to promote the development of the fishing industry, among which boosting fish consumption in Brazil, promoting exports, scientific research and the construction of eleven new fishing ports. SEAP Director José Fristch said the target was doubling current fish production by encouraging the aquaculture sector to make use of the country's dams. Mr. Fristch also revealed that in spite of a meagre budget for 2003 the Fisheries Department managed to extend low interest credit lines for coastal fishermen in the framework of the National Programme for Aquaculture Family Support (Pronaf). In 2003 the Brazilian Merchant Navy Fund received the equivalent of 600 million US dollars for the construction of more than 200 oceanic fishing vessels to be built in the coming four years. Mr. Fritsch also highlighted the success of fish consumption week, which was carried out together with supermarkets from across the country, increasing the sale of fishing products by 30%. Besides during the first nine months of 2003, exports reached USD 168 million, a considerable increase over 2002 when exports totalled USD 129 million. (FIS/MP).-

EU country members can subsidise fishing companies

The European Commission (EC) has submitted a proposal aimed to simplify the concession of national aids to small and medium fishing business, by allowing countries to hand out aids without requesting authorisation from Brussels. According to the EU Fisheries and Agriculture commissioner, Franz Fischler, this initiative highlights the EC's willingness to delegate certain tasks in order to simplify regulations. The measure will only apply to aids given to small and medium businesses (Pymes), which have a maximum of 250 employees, and returns of around EUR 40 million. The proposal has two aspects. Firstly, the EU Executive passed a norm, to be applied until the end of 2006, introducing a simplified system which allows member states to hand out various aids to the agrarian and fishing sectors, without requesting authorisation from the EC. Secondly, the EC proposed the establishment of a "minimum" ruling to the Council of Ministers, which exempts countries from requesting permission to hand out national aids to the agrarian and fishing sectors for less than EUR 2,000. According to sources from Infoagro, this project, which will be discussed by the EU Council of Ministers, establishes a 0.3% exemption for the agrarian or fishing production of the country in question. It has been estimated that the approval of this measure may affect EUR 290 million in premiums per year, and 2.1% of the annual volume of agrarian national aids in the EU. Mr. Fischler stated that this is the first time that the EC has offered to accept minimum aids in the fields of fishery and agriculture. The ruling, that was approved last week, will take effect 20 days after its publication in the Official Journal of the European Union, and will exempt EU countries from having to notify the European government each time they allocate aims for the environment, animal welfare, and agricultural food safety. The norm therefore allows member states to subsidise up to 55% of investments, and 75% of producers' expenses in order to improve animal welfare and environmental protection. The government will be authorised to grant a maximum of EUR 100,000 during a three year period, in order to implement measures to promote the sale of quality products. The same amount will also be invested in technical assistance such as agrarian consulting and commercial fairs. The following aids are to also be included in the exemption: 50% of national aids for disadvantaged areas, 20% of subsidies to increase production, and 60% of expenses for environmental improvements, transformation or improvements in animal welfare, a percentage that could reach 75% in disadvantaged areas. This ruling does, however, require member states to publish all aids on the internet before the payment is made, so that all parties involved can access the information. The EU Executive will be permitted to open an investigation, should a complaint be filed regarding the application of a new aid. (FIS/MP).-

Las Palmas seeks agreements with Chinese fleet

The president of the Las Palmas Port Authority has requested the Madrid government to speed proceedings so that the Chinese fleet operating in west Africa is authorised to make transfers in the ports of La Luz and Las Palmas. José Manuel Arnáiz's request is based on the important volumes handled by the Chinese vessels. Only the Chinese State Fishing Company, one of three companies operating in La Luz port, handles more than 60,000 tonnes of catches in these facilities, and around 350,000 tonnes in Eest Africa, with a 250 vessel fleet. According to data provided by a representative from the Chinese State Fishing Company, Li Kegong, this company pays out an estimated 30 million US dollars per year for port services, travel agencies and social security through its Las Palmas office, which employs 32 people from both China and the Canary Islands. Mr. Arnáiz described the recent visit of Wen Jiabao, Prime Minister of the State Council of the People's Republic of China, to the capital city of Gran Canaria a "historical event" as it provided the opportunity to make contact with representatives from "the most important fishing industry in the world." Las Palmas Port Authority has already offered the Chinese government the possibility of operating in the Tax Free Area and the Canaries Exclusive Zone. The aim of these offers is to "position this port as the first Atlantic transfer port, not only for containers but for other added value services such as fishery for both transformation and commercializing." In a statement to the local press, Mr. Arnáiz recalled that the Chinese fleet uses ports in the areas where it operates and that certain African countries only permit vessels in their fishing grounds on condition that they land catches in their ports. However, Chinese companies are looking for new landing spots that can guarantee the cold chain. Mr. Arnáiz added that the Chinese fleet is looking for a "high level port, such as La Luz, which would allow them to increase added value to their production and reach destination markets more efficiently." Chinese Prime Minister Wen Jiabao also highlighted the need to develop fisheries outside China by complying with the laws of the countries and regions where the Chinese fleet operates. "We must send a good message and positive image to the world, not only of hard work but of people who can create lasting relationships with other countries", underlined Mr. Wen Jiabao. (FIS/MP).-