Photo: Illustration/FIS

Opinion: Delaying the Allocation of Fishing Quotas is Serious

ARGENTINA
Sunday, November 10, 2024, 07:00 (GMT + 9)

Fishing Quotas and Authorizations are the main tools the State has for managing, exploiting, generating foreign exchange, adding value, promoting employment, increasing domestic consumption, conserving species in perpetuity, and adequately distributing fishing resources.

Mismanagement occurs when resources are overexploited, but also when resources are not adequately distributed or sustainably utilized. It also happens when value-added processing is not promoted, or when the interrelationships between species are ignored, both in the Exclusive Economic Zone (EEZ) and in international waters for migratory or associated species.

Of all the species found in Argentina’s maritime continental EEZ, only common hake, black hake, tail hake, pollock, and scallops are allocated quotas. For the rest, such as squid and shrimp, only capture authorizations are issued due to the lack of technical criteria for quotas. To properly understand the difference between the two methods, it should be noted that until 2009, species were caught under an “Olympic fishing” system, where all vessels were granted fishing permits and companies essentially raced against each other until the Regulatory Authority ended the season to conserve resources. This system did not allow for adequate management and distribution of resources, and companies had limited predictability in terms of catches, processing, labor stability, and domestic and international sales.

The quota system was established in 1998 under Law 24.922, although it was only implemented in 2009 through the granting of Individual Transferable Fishing Quotas (ITQ) to various fishing vessels. These quotas represent a set percentage of the Total Allowable Catch in the Argentine EEZ, which is the maximum sustainable catch determined annually based on research by the National Institute for Fisheries Research and Development (INIDEP). This system allows companies to plan annual catch volumes, which in turn supports investment in vessels, processing plants, crew and worker employment, and fulfillment of export and domestic market contracts.

While imperfect, as we will discuss, the quota system is key to promoting investment, generating employment, and planning sales. However, the Federal Fisheries Council (CFP), headed by Juan Antonio López Cazorla, seems not to grasp this fundamental aspect of fisheries management. With quotas for Common Hake (Merluccius hubbsi) expiring soon, new quotas have not been allocated, risking the shutdown of the fleet targeting this species starting January 1, 2025. This would be especially serious for the port of Mar del Plata, where 210,000 tons of hake are landed each year, representing 70% of the national catch of this highly labor-intensive species. The lack of foresight is likely already affecting various suppliers and the naval industry, as demand for new fishing vessels is on hold. If the CFP were a private company, its members would likely have already been dismissed, as they knew upon taking office that quotas would expire at year’s end. Since August, provinces, companies, and unions have been urging action on this issue (CFP Minutes 14;18;19/24). Is there a hidden reason for this delay? There might be, given that those who allocate quotas understand the immense value these permits hold for companies.

Regarding the system's imperfections, we note several areas for improvement, including new investments stemming from quotas (particularly in aquaculture and mariculture), establishing a more equitable distribution based on an “Economic Fisheries Unit,” handling of quotas and permits granted to foreign companies whose nationals fish illegally in the Southwestern Atlantic and Falklands, international fishing, auditing of companies with quotas and permits, and setting aside fishing reserves.

Investment: Quotas initially issued for 15 years ending December 31, 2024, considered investments made by companies up to 2009. However, moving forward, only investments made from 2010-2024 and those planned for 2025-2039—especially in areas like aquaculture and mariculture—should be considered. While global production in aquaculture accounts for 50% of the total, Argentina’s share remains below 2%. For example, Chile exported around 800,000 tons of salmon and trout in 2020 despite the pandemic, valued at $4.389 billion (up from $5.127 billion in 2019), more than double Argentina’s total maritime fishing exports. Argentina is wasting the potential of its vast territory, and if aquaculture is encouraged, inland provinces could produce volumes for both domestic consumption and export, surpassing current exports from Argentine waters.

Equitable Distribution: Through an “Economic Fisheries Unit,” catch quotas should enable small-scale fishers and processors to operate sustainably, allowing less developed provinces to access the necessary resources for industrial processing, job creation, and community development.

Mexico’s Fishing Law states that “commercial fishing is undertaken for economic gain,” and all fishing concessions, regardless of size, must ensure an “Economic Fisheries Unit” that provides operational continuity, job creation, and economic sustainability. This also prevents concentration of resources among a few large companies.

Quotas and Permits for Foreign Companies: In Argentina, paradoxically, there are Chinese state-owned companies established locally, while vessels from the same state exploit migratory resources originating from Argentina’s jurisdiction in international waters. Spanish-owned companies are also established in Argentina, while others fish in Falkland waters without Argentine authorization, competing unfairly with domestically caught and processed products. Immediate political action is required.

High Seas Fishing by Domestic Vessels: Due to inadequate incentives, Argentina has not promoted national fishing in international waters, allowing foreign, subsidized fleets with poor labor conditions to deplete Argentina’s migratory resources, competing with Argentine products in the same markets, and harming the Patagonian ecosystem. Nationally authorized vessels fishing beyond the 200-mile EEZ should be exempt from taxes, customs duties, and fuel charges, and other incentives should be considered without reducing fishing effort in Argentine waters.

Company Audits: The State must ensure that projects, investments, and obligations associated with quotas and permits are met. Non-compliance should lead to immediate reassignment of quotas or permits.

Quota Reserves: Reserves should be exclusively for the development of artisanal fishing, research, or use in strategic territories. The system of issuing reserves should be reformed to prevent decisions from being left in the hands of a few temporary officials, reducing opportunities for corruption.

Quota-based management should be complemented by measures to eliminate illegal foreign fishing, ensure maritime control, modernize ports, promote domestic shipbuilding, and enhance the administrative and economic efficiency of the Undersecretariat of Fisheries and the Federal Fisheries Council.

The current crisis requires fisheries managers not to hinder the real change needed. In partnership with businesses and labor organizations, they must work to make industrial fishing a model for national development.

As Louis Pasteur reminded us in 1862: “Nothing is produced by spontaneous generation.”

Dr. César Augusto Lerena

Experto en Atlántico Sur y Pesca.

Ex Secretario de Estado.

Presidente Centro de Estudios para la Pesca Latinoamericana (CESPEL)

Presidente de la Fundación Agustina Lerena

www.cesarlerena.com.ar

This article represents the views of the author. Opinion pieces published do not necessarily reflect the editorial stance of this outlet. Fish Info & Services is an independent platform, open to reader perspectives. If you would like to publish with us, please contact us. info@seafood.media

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