Any article that deals with fisheries’ geopolitics always calls to my never-ending list of interests! Hence, "A Geopolitical Economy of Distant Water Fisheries Access Arrangements", which examines the dynamics of Fisheries Access Arrangements (FAAs) and their implications for lower-income coastal and island states, caught my attention. This is especially true because I know a couple of the authors (Liam Campling, Elizabeth Havice and Beatrice Gorez)
FAAs are agreements that permit foreign states, firms, or industry associations to fish within coastal States' Exclusive Economic Zones (EEZs). These arrangements are based on the 1982 United Nations Convention on the Law of the Sea (UNCLOS), which granted coastal states sovereign rights over marine resources within their EEZs. The UNCLOS aimed to redistribute economic benefits to newly independent and lower-income states.
The article's interesting aspect is that it argues that UNCLOS's promise has not been fully realized, as wealthier nations continue to dominate industrial fishing in the waters of poorer countries.
Historical Context and Evolution of FAAs
Before UNCLOS, the oceans were largely open-access resources, with European imperial powers advocating for "freedom of the seas" to enhance global commerce and colonialism.
This changed in the mid-20th century due to the growth of industrial fishing and the decolonisation process, resulting in jurisdictional claims over marine resources. The establishment of Exclusive Economic Zones (EEZs) under UNCLOS in 1982 marked a significant shift, granting coastal states sovereign rights over 95% of the global marine fish catch. This transition converted vast ocean areas into state property, enabling coastal states to impose access fees, manage resources, and exclude foreign fishers.
Despite these legal provisions, the dominance of high-income nations' distant water fishing fleets (DWFs) in the waters of low-income countries continues. I tackled this in recent posts on Tuna Diplomacy 1 and 2.
Interestingly for me, the article analyses several ways in which the promise of UNCLOS has been both realised and limited for lower-income coastal states:
Positive Impacts:
Sovereign Rights Over Resources: UNCLOS established the legal foundation for lower-income coastal states to claim ownership of marine resources within their EEZs.
Potential for Economic Benefits: By granting states the ability to negotiate Fisheries Access Arrangements (FAAs), UNCLOS created opportunities for lower-income states to capture rents from foreign fishing fleets, generate revenue, and promote domestic economic development.
Control Over Resource Management: Coastal states could define resource management practices, determine surplus resources available for foreign fishing, and collaborate on managing shared or migratory fish stocks.
Legal Framework for Redistribution: UNCLOS was part of a broader effort to address historical inequalities between the Global North and South, aiming to redistribute economic benefits from marine resources to newly independent and lower-income states.
Challenges and Limitations:
Dominance of Higher-Income Nations: Despite the legal provisions of UNCLOS, higher-income nations' distant water fishing fleets (DWFs) continue to dominate industrial fishing in the waters of lower-income states.
Uneven Economic Benefits: The economic benefits from FAAs have been mixed. While some states have successfully used FAAs to generate revenue or promote domestic industries, others have faced challenges such as corruption, undervalued access fees, and limited transparency in FAA agreements.
Reflagging Practices: Higher-income fleets often reflag their vessels to lower-income states to secure access to their EEZs, obscuring the true extent of foreign fishing and complicating efforts to capture rents.
Geopolitical and Economic Pressures: Lower-income states often face power imbalances in negotiations with wealthier nations and multinational firms. These dynamics can result in agreements that favour resource-seekers over resource-owners, limiting their ability to fully benefit from their marine resources.
Environmental and Sustainability Concerns: The focus on maximising short-term economic gains from FAAs can lead to overfishing and depletion of fish stocks, undermining long-term sustainability and the ecological health of marine resources.
Transparency and Accountability Issues: Many FAAs lack transparency, with limited public information on the terms, payments, and benefits. This makes it difficult to assess whether lower-income states receive fair compensation for resource access.
The reflagging issue is one that I understand and, to an extent, worries me from a compliance and labour perspective. In 2019, vessels registered in higher-income countries carried out 60% of the fishing efforts in low-income EEZs. This represents a decline from 78% in 2016, partly due to high-income fleets reflagging their vessels to low-income states to secure access. However, the overall pattern remains unchanged, with industrial fishing in tropical waters primarily controlled by wealthier nations. A clear example is that our biggest flags states for fishing vessels in the PICS are Vanuatu, Nauru and FSM.
Conceptual Framework: Geopolitical Economy of Access
The article introduces a conceptual framework for studying FAAs through the lens of the geopolitical economy. It categorises key players as resource owners- coastal states with sovereign rights over marine resources- and resource seekers- firms and states seeking access to fisheries. While UNCLOS grants coastal states the authority to manage resources and capture rents, the terms and conditions of FAAs are highly heterogeneous and shaped by economic, ecological, and geopolitical factors.
The framework emphasises the role of firms, the primary actors in fishing activities, even though they operate under the flags of their home states. These firms often collaborate with their home governments, leveraging aid, diplomacy, and subsidies to secure access. The economic benefits of FAAs are influenced by factors such as fish stock health, competition, and geopolitical relationships. However, these benefits are often contested and shaped by power dynamics, corruption, and environmental conditions.
Typology of FAAs
FAAs can be categorised along a spectrum, ranging from "first-generation" arrangements (cash-for-access agreements) to "second-generation" arrangements requiring onshore investments, such as fish processing facilities.
Resource-seekers typically negotiate first-generation FAAs, which involve payments for access and are often accompanied by fisheries management and monitoring requirements. These arrangements can be bilateral or multilateral and can involve industry associations.
Second-generation FAAs aim to connect fisheries extraction to domestic economic activities, such as employment, tax revenue, and industrial development. These arrangements often involve discounted access fees in exchange for commitments to employ local crew, transship fish domestically, or invest in onshore facilities.
However, the benefits of second-generation FAAs are mixed, as they may lead to lost access revenue and are often subject to manipulation by DWFs seeking long-term strategic access.
Case Studies of Resource-Seekers and Resource-Owners
The article provides case studies of resource seekers and resource owners to illustrate the diversity of FAA approaches. Resource seekers, including China, the European Union (EU), Japan, South Korea, and Taiwan, have developed unique strategies for accessing fisheries.
For example, China's DWF is shaped by an industrial strategy and relies significantly on second-generation FAAs, while public subsidies and transparency mark the EU's FAAs.
Resource owners such as Namibia, Pacific Island countries (PICs), and West African states adopt various approaches based on domestic priorities. Namibia has successfully implemented second-generation fisheries access agreements (FAAs), which have led to onshore employment in fish processing, although corruption has undermined local benefits. PICs have emphasised regional cooperation to maximise rents from distant water fisheries (DWFs), while West African states encounter challenges, including conflicts between DWFs and local fishers.
Key Findings
The study highlights several key findings:
Public Asset Nature of Fisheries: Fisheries within EEZs are public assets, and access arrangements should align with national economic and environmental objectives. However, multinational corporations and geopolitical forces affect these arrangements.
Context-Specific Dynamics: FAAs are highly context-specific, influenced by factors such as the presence of civil society, national institutions, ecological conditions, and value chain dynamics. Efforts to enhance access arrangements must consider these unique contexts.
Dominance of Firms: Firms, often located in resource-seeking nations, are the primary beneficiaries of FAAs. They utilize various strategies, such as reflagging and joint ventures, to access resources, frequently with support from their home governments.
Relational Nature of Access: Access arrangements are relational and negotiated between states and firms, influenced by domestic, regional, and global politics. They are also shaped by the characteristics of the fishery and its regulatory practices.
Transparency and Accountability: Revenues from FAAs should be regarded as public assets, with effective transparency and accountability mechanisms established. However, resource owners frequently advocate for secrecy to preserve bargaining power, presenting obstacles to transparency initiatives.
Tensions and Contradictions
The study identifies tensions between the motivations of resource seekers and resource owners. Resource seekers aim to maximise profits, protect domestic industries, and expand geopolitical influence, while resource owners seek to maximise rents, promote domestic economic activities, and ensure sustainability. These conflicting motivations often result in uneven outcomes and highlight the importance of power dynamics in shaping foreign acquisition agreements (FAAs).
Research Agenda and Conclusion
The article calls for increased research and policy attention to FAAs, emphasising the necessity of a geopolitical economy approach to understand the distribution of benefits and risks associated with ocean resource use. It highlights the escalating human impact on the oceans and the uneven distribution of economic benefits, reflecting broader North-South inequalities. By examining FAAs through a geopolitical economy lens, the study aims to illuminate the complexities of access arrangements and their implications for the promise of resource ownership under UNCLOS.
In conclusion, the article emphasises the significance of viewing FAAs as relational and context-specific arrangements influenced by economic, sustainability, and geopolitical forces. It advocates for increased transparency, accountability, and attention to the distributional issues related to ocean resource use, especially considering ecological changes and the growing human impact on the oceans.