Aquaculture and Trade av Frank Asche University of Stavanger and Centre for Fisheries Economics, NHH

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Aquaculture and TradeavFrank AscheUniversity
of Stavanger and Centre for Fisheries Economics,
NHHFAO, 22.11.2004
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Trade restrictions

• Due to the GATT and WTO agreements, general
  tariffs has been substantially reduced since the
  mid 1980s
• Explosion in the use of anti-dumping and other
  temporary trade restricting measures
• Although measures are based on complaints, the
  plaintiff win in most cases

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Seafood

• Farmed products most exposed
• US
• Anti-dumping Salmon (Norway and Chile),
  crawfish (China), Shrimp (China,
• Equador, Vietnam etc), Catfish (Vietnam)
• Health/quality issues (primary shrimp)
• Ecolabeling, dolfin safe tuna etc.
• EU
• Anti-dumping, salmon, trout, shrimp etc.
• Safeguard measures.
• Health/quality
• Voulentary trade restraints

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Why are there a number of trade issues in
relation to farmed fish?
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Why are there a number of trade issues in
relation to farmed fish?We start by looking
closer at salmon
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Global farmed salmon production and real
Norwegian export price (20031)
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Global farmed salmon production and real
Norwegian export price (20031)
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Price and Norwegian production cost
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Price and Norwegian production cost
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Production shares, atlantic salmon
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The industry has a production technology that
gives cycles in profitability Quick
productivity growth leads to quickly increasing
production and lower prices
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And there are further productivity gains in the
supply chain?
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Aquaculture

• Export oriented aquaculture are in general
  characterized by quickly increasing production,
  price declines and cyclical profitability
• The EU, Japan and the US are the main export
  markets for all these products
• Products often target thin markets, in particular
  fresh
• It is in the competitors interest to reduce
  competition
• The quick growth makes it easy to use the
  anti-dumping measures etc.

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Concluding remarks

• Export oriented aquaculture is likely to continue
  to be targeted by domestic producers in
  complaints with respect to unfair competition.
• This increase cost of production and therefore
  hinders growth.
• Opens up for other species and influence where
  fish farming occur
• But will most likely have a limited effect on
  total producion

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Sea bass
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Sea bream