I. INTRODUCTION

1. Giving effect to the Code of Conduct for Responsible Fisheries and other international fishery instruments is the major challenge facing countries in their efforts to secure long-term sustainable fisheries and aquaculture.¹ The political will to take steps to accept and to implement these instruments, to adopt well conceived national policies, and to take action to operationalize those policies, are fundamental to facilitating the required structural change in the fisheries sector. The 1998 High-level Panel of External Experts in Fisheries stressed the achievement of the 1995 adoption of the Code of Conduct and urged the full and effective implementation of the Code, noting that it should remain a major activity for FAO over the medium term as a means of trying to secure the sustainable exploitation and utilization in fisheries and aquaculture. It was further noted by the Panel that the Code comprehensively embraces the work programme of the Fisheries Department and a draft Strategy to guide the implementation of the Code had been elaborated. FAO should pursue the implementation of the Code, in line with this Strategy, at every opportunity, and seek additional funds to support implementation.

2. Achieving structural change will be made all the harder in the face of increasing pressures on fisheries and aquaculture. These pressures come both from within the sector (primarily due to increasing participation rates and consequent higher resource depletion rates) and from outside (competition for space in the coastal zone and impacts such as those generated by environmental degradation and climatic variability).² Moreover, rising real prices for fish have the effect of encouraging new investment in the sector, thereby creating additional pressures on stocks and their management. Small island developing States (SIDS), and the poorest among the developing countries, are likely to be most disadvantaged groups in terms of obtaining and maintaining access to fish as a consequence of these price-led pressures.

3. This complex array of internal and external pressures impacting the fisheries sector call for responsible, timely, coordinated, and comprehensive responses by national fishery administrations and regional fishery bodies if governance is to be strengthened. This is especially the case where, for national policy or other reasons, the relative importance of the fisheries, vis-a-vis other sectors of the economy, is assigned a lower priority.

4. In preparing this paper a number of documents have been consulted so that their respective recommendations and conclusions could be reflected in the paper. These documents included, inter alia: FAO Medium Term Plan 1998-2003; Code of Conduct for Responsible Fisheries; 1995 Rome Consensus on World Fisheries; 1995 Kyoto Declaration and Plan of Action; 1996 Rome Declaration on World Food Security and the World Food Summit Plan of Action; 1997 Report of the First Session of the Advisory Committee on Fisheries Research (ACFR); draft inputs from the Fisheries Department for FAO 2000 - Strategic Framework; and the 1998 Report of the High-level Panel of External Experts in Fisheries.

II. SECTORAL ISSUES AND CONSIDERATIONS

5. In assessing future challenges for the fisheries sector, a number of key issues that span the entire sector, and which are of primary policy importance, can be identified. These challenges include:

• maintaining the contribution made by fisheries and aquaculture to food security, employment, national economic development, and recreation. Depending on geography, access to markets and affordable technology, the contribution of fish to food security comes not only from fish produced for direct local food consumption, but also from aquatic products of all types which can be sold domestically or exported for funds, as well as those which generate income through recreation, tourism, and employment. Access to all potential contributions is not be automatic and specific interventions are required to achieve full access.

• strengthening the base for fisheries management and aquaculture development through improved data collection and scientific assessment so that decisions concerning management and development options could be more rationally based and informed. This requires a multifaceted approach in that (i) there is consultation with data users so that they get the data required for their work, (ii) there is appropriate data collection mechanisms and data management systems, (iii) there is a national commitment to provide data, and (iv) FAO and non-FAO regional fishery bodies and other appropriate institutions and organizations are involved in regional assessments concerning trends in fisheries;

• improving governance and more effective conflict resolution - as fishery resources become scarcer the intensification of regional fishery conflicts should be anticipated; promoting national capacity building and the strengthening of regional institutions; developing objective performance indicators relevant to governance; encouraging coherent management approaches and better collaboration among regional institutions to address emerging issues of common concern;

• facilitating greater transparency in fisheries sector decision making at all levels through greater stakeholder participation in national and regional processes. Such transparency, which is now being called for widely in many international fisheries instruments, has the benefit of promoting greater acceptance of decisions when stakeholders have been consulted and involved;

• improving access to, and the dissemination of, good quality and timely information in the most appropriate formats, in support of responsible fisheries and aquaculture, and trade;

• reducing of by-catch and discards through the use of more selective gear and fishing operations, and innovative and value-added processing and market development for species currently discarded and expanding and promoting of uniform quality criteria for internationally traded fish and fish products. In the interests of food security and the best utilization of limited resources, the prevention of post-harvest losses should be pursued as a matter of high priority. Methods and incentives to minimize post-harvest losses need to be devised and implemented, building on work already undertaken by FAO and other organizations. In addition, the facilitation of value-added processing should be encouraged so as to maximize benefits for producing countries. Processing enables more efficient storage and movement of products locally thereby contributing to food security;

• promoting cooperation in fish trade with a view to avoiding disputes and imposition of sanctions; minimizing of the impact on international fish trade on those groups most vulnerable to food insecurity; and

• integrating coastal area planning and management more effectively.

III. MARINE CAPTURE FISHERIES

6. While some increment in marine fisheries production may be anticipated in the longer run as the benefits of improved management take hold and production from under- and non-utilized resources is increased, the primary goals for marine fisheries in the medium term is to ensure that production, and the aggregate contribution marine fisheries make to global food security, is at least maintained.

7. In the medium to long term the major challenge facing marine fisheries is improved and responsible management of stocks. Such management requires the regulation of production (ideally, taking account of both inputs and outputs in a fishery) in a precautionary manner so that excessive effort, leading to overfishing, is not applied to target stocks. In addition, ecosystem management, that takes account of fishing impacts on non-target stocks, is becoming more common, and will add a further complicating dimension to the management process. Indeed, in 1997 ACFR identified an ecosystem perspective on fisheries as an area of research emphasis, while the 1998 High-level Panel of External Experts in Fisheries expressed the view that FAO and all fishery bodies must increasingly develop an ecosystem approach to management. In addition, FAO will need to act as a conduit between emerging research results and fisheries sector partners (international, regional and national) to encourage an increased emphasis on the role of fisheries in ecosystems, the way in which fisheries are affected by ecosystems, and the relationship between the alternative uses and value of ecosystems.

8. Within the context of marine fisheries management, challenges that have been highlighted by the international community include:

• the more effective translation of social, economic and biological information into concrete fishery management policy in which objective policy frameworks and performance criteria are given priority;

• the more explicit recognition of access rights in both artisanal/small-scale and industrial fisheries so as to reinforce management input and output controls. ACFR proposed rights based fisheries systems among the second set of topics to be addressed by the Committee's working parties;

• the management of fleet capacity and the clarification of the role of industry subsidies which may distort production arrangements;

• the strengthening of monitoring, control and surveillance (MCS) as a means of ensuring that agreed fishery conservation and management measures are implemented effectively, speedily, and as intended. MCS will be an increasingly major issue for the future management of fisheries. Developing countries and in particular those countries such as SIDS that depend on access arrangements with foreign fleets, need MCS assistance and in particular in dealing with vessels flying flags of convenience or phantom vessels flying no flags at all. Enhanced flag-State responsibility is essential in addressing these problems. All fishers must be prepared to comply with more stringent requirements; and

• pro-active support, possibly though the provision of objective and competent advice and training, to facilitate industry privatization initiatives with a view to making it more efficient and competitive.

9. As a means of improving management in marine fisheries, the strengthening of user rights in many artisanal and small-scale fisheries, and the allocation of user rights in industrial fisheries, is being persued with priority. Utilization and management based on individual or group user rights has a long history in many parts of the world. Traditional-rights based management systems confer a user right based on prescribed social and economic parameters, while taking into account the need to conserve fisheries resources. These conservation measures normally involve fishing bans, seasonal and areal closures, and effort limitation. Traditional management systems are community surveilled and enforced, with social sanctions being imposed for fishers violating agreed conservation measures.

10. In artisanal and small-scale fisheries in developing countries the promotion of traditional or community-based management practice is now being fostered as the most appropriate means of management. This approach builds on customary and traditional practice using the concept of territorial use rights in fisheries (TURFs). In fisheries where there are thousands of fishers, hundreds of fishing communities and a plethora of landing points, contemporary management through the use of local institutions and traditional practice is the most viable option for achieving sustainability in artisanal and small-scale fisheries.

11. In industrial fisheries advances in fisheries management through individual transferable quotas (ITQs), which provide greater incentives for sustaining and optimising economic performance of fisheries, have re-focused attention on quota management. ITQ management draws on biological, economic and financial considerations as part of an integrated management system approach.

12. Several factors can be identified as being critical to the successful implementation of ITQ management systems: transparent management policies and the political will to take difficult decisions concerning management; legislation that is easily enforceable; efficient administration (particularly with respect to capacity for stock assessment, statistical collection and real-time analysis, and monitoring, surveillance and enforcement); and limited numbers of fishers and landing points.

13. While ITQ management has had considerable success where it has been implemented, the introduction of such management must be considered on a fishery-by-fishery basis since it does not provide a universal panacea for the management of all fisheries. One fundamental issue that must be addressed is the social impact of ITQ management. Although ITQs are capable of delivering biological and economic efficiency, their impact of fishing communities should be fully assessed since they may lead to social dislocation and fishworker unemployment. A further issue concerns the desirability of the possible concentration of quota and the transfer of quota to corporations and individuals outside the industry who do not have a real and long-term interest in a fishery.

IV. AQUACULTURE AND INLAND FISHERIES

14. A major challenge for aquaculture and inland fisheries will be to maintain and, where sustainable, enhance the contributions made to global fish supplies. 1996 yields from inland fisheries reached a record of 7.5 million tonnes, or 7.8 percent of total capture fisheries landings. Aquaculture contributed 26.5 percent of total world fish production (aquatic plants are included in both aquaculture and total world fish production figures). Aquaculture is now the fastest growing food production sector in agriculture. Moreover, aquaculture makes a major contribution to global food security and more opportunities still exist to further expand its role. The High-level Panel noted that there are different forms of aquaculture, some of which will have greater benefits to rural economies and better assist food security than others. Small reservoir fisheries had potential to develop as community-based management initiatives gain greater favour.

15. The contribution of inland fisheries, in particular by subsistence fisheries, to food security, while greatly under reported, is most significant, given that:

• actual harvests may amount to 15 million tonnes annually;

• there are no discards; and

• virtually all catch goes directly for human consumption.

Recreational fishing, which often is for subsistence, may yield 2 million tonnes annually. Farming of herbivorous or omnivorous freshwater finfish species continues to dominate global aquaculture output, followed by production of molluscs and seaweeds. The bulk of farmed fish is produced primarily for domestic markets, providing much needed protein-rich food affordable to rural and urban consumers in many low-income food-deficit countries.

16. In many developing countries, there is significant scope for enhancing contributions of inland fisheries and aquaculture to food supplies and poverty alleviation. However, most fishers and fishfarmers continue to lack access to adequate technical information required to improve their practices to increase production. Increased fish production can be achieved through expansion, intensification, diversification, and better integration of fish production into existing land and water use schemes, but fish producers, as most rural people, often do not have access to credit. Capacity building through provision of training, extension, and advanced education to fish producers continues to be crucial for successful development.

17. The greatest threat to the sustainability of inland fishery resources is environmental degradation. Aquatic pollution, destruction of fish habitats, water abstraction and impacts on aquatic biodiversity are all increasing. These trends must be reversed. Other major issues to be addressed in inland fisheries include:

• the use, promotion and management of enhancements, particularly in small water bodies and reservoirs, while conserving biodiversity;

• the need to control access to resources and to increase community level responsibility for management;

• the need for inland fisheries to be included in valuation and management of multiple uses of water resources;

• the growing importance of recreational fisheries and conflicts of resource allocation between food and sport; and

• the need, which will increase through time in the light of the rapidly growing field of genetics and biotechnology, for international mechanisms to create coherent management and policy systems for the sustainable use and conservation of aquatic genetic resources.

18. The potential for further growth of aquaculture is promising. ³ Such growth could be realized through improvements in technologies and resource use, intensification, integration of aquaculture with other farming activities, and development of additional areas for aquaculture. However, aquaculture will face significant challenges including:

• meeting growing demands for seed, feed and fertilizers, in terms of quantities and quality;

• reducing production losses through improvement in fish health management;

• increasingly severe competition with other resource (land/water/feed) users;

• deteriorating quality of water supplies resulting from pollution;

• successful integration of aquaculture with other farming activities, and promotion of small-scale low-cost aquaculture, in support of rural development. However, small-scale low-capital aquaculture suffers similar constraints in Africa, Asia, Latin America, the Pacific Islands and the Caribbean. Developing this sector appears to demand different approaches to those in larger scale more technically intensive systems although such larger scale systems, including peri-urban developments are likely to have spillovers and demonstration effects in the largely rural small-scale sector;

• improvements in environmental management including reduction of environmental impacts and avoidance of risks to biodiversity through better site selection, appropriate use of technologies, including biotechnologies, and more efficient resource use and farm management; and

• assurance of food safety and quality of products.

19. Both aquaculture and inland fisheries suffer from insufficient institutional support and legal and political recognition as legitimate users of resources. Many policy makers are not aware of the benefits and needs of these sectors. A major future task is therefore to increase participation of producers and relevant public authorities in the allocation and management of aquatic resources and land uses. Management of river or lake basins, and of coastal areas must take account of fisheries and aquaculture.

VI. FISH UTILIZATION, QUALITY ASSURANCE AND TRADE

20. A number of important trends that pose challenges to the post-harvest sector can be identified:

• more than 50 percent of world fish catches now enter international trade, with the proportion from developing countries continuing to increase. The net export value of fishery products from developing countries increased from US $ 5,200 million in 1985 to US $17,200 million in 1996;

• tariffs on fish and fishery products have been reduced significantly more than those for agricultural products as a result of multilateral agreements. Further reductions are foreseen;

• there has been an overall increase in food-borne disease throughout the world and consumer pressure has forced many governments to impose stricter quality assurance requirements on the food supply. Although fish products are not identified as a major vector the processing industry has had to respond to the challenge;

• governments and industry are adopting a new approach to the quality assurance and safety of fishery products based on an analysis and management of the risks rather than end product inspection, which has proved unreliable; and

• assisting developing countries to take advantage of the downward trend of tariffs for fishery products in international markets;

• developing the capacity to build and run effective quality assurance systems to comply with increasingly stringent international standards and subsequently extending these to the domestic market;

• understanding and documenting the safety hazards associated with seafood coupled with the establishment of an easily accessible information system on known hazards; and

• promoting efforts to improve selective fishing gears to minimise by-catches of juveniles and non-target species as well as technologies to make economic use of unavoidable by-catches.

VII. STRATEGIES TO ADDRESS THE CHALLENGES

22. To address the challenges in fisheries and aquaculture FAO will, inter alia, employ the following strategies:

• promote integrated and sustainable fisheries and aquaculture in coastal and basin areas through community-based management policies;

• forecast emergencies and disaster prevention and mitigation in fisheries and aquaculture;

• development of science based standards to implement the international regulatory framework in the area of food and plants and for responsible fisheries and aquaculture;

• support transition of fishery and aquaculture industries to improved professionalism and efficiency, particularly development of appropriate legal institutional frameworks and capacities;

• support increased and sustainable fish production through improved information access, participatory approaches, relevant and appropriate technologies and effective management systems;

• promote the sustainable utilization of land, water and their living resources for food, while ensuring conservation of biodiversity, genetic resources and the environment;

• promote development and adoption of integrated management systems for fisheries and aquaculture supported by appropriate information exchange, research and policy advice;

• guide genetic resources management and address the threat to biodiversity, as farmers abandon cultivars, landraces and species, and as genetically modified organisms and alien species (exotic species) become more widely used;

• provide support to institutional and policy-making capacities and legal frameworks at national and regional levels (including regional networks, such as the regional fishery bodies) to incorporate social, economic and environmental issues into policy decisions;

• develop norms, standards, methodologies and guidelines for the collection, exchange and utilisation of fisheries data and information;

• assist FAO Members to develop national capacities to collect, process, disseminate and analyse reliable data and information;

• develop an integrated information system linking FAO and partners institutions so as to enhance accessibility to up-to-date fisheries information and knowledge;

• diversify the type of data included in analyses of trends to make the analyses more representative of reality and more robust; and

• encourage more participation of partner organizations and programmes in order to ensure that the most reliable data and the best specialist knowledge are utilised for analyses.

VII. SUGGESTED ACTION BY THE COMMITTEE

24. The Committee is invited to review the nature and extent of challenges facing world fisheries and aquaculture. Furthermore, the Committee is invited to comment on the strategies outlined to meet these challenges, and where appropriate, to provide additional advice and guidance to ensure that the challenges are effectively addressed.