Meeting on Fisheries Subsidies

By Pape Gora NDIAYE

Enda Tiers Monde

Fisheries Resource Management and Subsidies:

Lessons from Senegal

26, 27 April 2004Geneva, Switzerland

Introduction• Enda co-operates with UNEP, Fishery’s Ministry and

other nationals institutions to involve some initiatives in Senegal:

• Country study relating the “socio-economic and environmental impact of trade policies for sustainable management of fisheries resource”

• Study on support policies in fisheries

• Policy Implementation for sustainable management of fisheries resources

Fisheries Resource Management and Subsidies : Lessons from Senegal

Background

Relevance of the Fisheries Sector to the National Economy

• Fishing has become the major sector of the Senegalese economy: First position for exports(35 %) since 1986, turnover of 278 billions CFAF (about 450 millions US $ ) in 1996 and added value estimated at 80 billions CFAF (about 130 millions US $)

•

Fisheries Resource Management and Subsidies : Lessons from Senegal

Background

Fisheries Resource Management and Subsidies : Lessons from Senegal

Relevance of the Fisheries Sector to the National Economy

•Fishing creates as many allied jobs and employs about 15 % of the Senegalese active population, which is about 600,000 persons

• Fishing contributes to the satisfaction of the population’s proteins needs: 75 % of the needs in animal proteins are supplied by fish

•Fishing has taken a trade option directed to exports

•Fishing coastal demersal species (mostly exported) is more profitable than pelagic ones (locally consumed)

Background

Fisheries Resource Management and Subsidies : Lessons from Senegal

Fishing efforts shift from locally consumed species to export-oriented ones has complicated the domestic market supply and threatened the food securityCoastal demersal resources are overexploited: thiof (stone bass) and other wreck fishes, red mullets, white sea breams, grey mullets and soles . These species represent in average, about 35 % of all exports of all species and 50 % of coastal demersal fresh exports

Implementation of measures for the sustainable management and conservation of piscatorial products in

Senegal

Fisheries Resource Management and Subsidies : Lessons from Senegal

Description of measures

• discussion forums on the regulation of fishing in Senegal • to lift obstacles to the application of fishing regulation• The developed topics are: Forbid fishing gears still in use,

the size of the fishing nets and captured species and the demarcation of fishing zones

• Participants are Government NGO and representative organisations

Implementation of measures for the sustainable management and conservation of piscatorial products in

Senegal

Fisheries Resource Management and Subsidies : Lessons from Senegal

• Search for a regulation adapted to resource access for small-scale fishing• for associating grassroots organizations in the debate about

resources access regulation for small-scale fishing by collecting feelings and proposals

• Results of the study are actually used as complements of information by the fishery’s administration and will have to serve to illuminate these decisions to regulate the access to resources for small-scale

Implementation of measures for the sustainable management and conservation of piscatorial products in

Senegal

Main Results of the project•The customs has taken a decree forbidding import of this fishing gear made with monofilament

•Customs will take a decree forbidding not only its introduction on the local market but also any kind of particular regime

•Senegal will ask so as to make this regulation becomes a community regulation into UEMOA area

• Programme of sensitization and information will be conducted on emergency to apply the regulation

•The stock of fishing nets with monofilament fibre will be destroy after a transition phase negotiated with fishermen

Fisheries Resource Management and Subsidies : Lessons from Senegal

Main Results of the Project of Policy Implementation

Main results of the study on resource access for small scale fishing

Basic actors have recommended scenarios for regulating resource access:•Implementation of a local committee in each fishing area, which is in charge of regulation resources access by delivering fishing licenses for small-scale fishing and professional cards for fishermen

•Licenses will be made with charge for admission and money coming from the sale of licenses is poured in the national budget, provided that there is a rebate of 10% for financing the local fishing committee

Fisheries Resource Management and Subsidies : Lessons from Senegal

Situation of Subsidies in Senegal

• Since the devaluation of FCFA (local currency) exports subsidies are cancelled

• Mechanisms in support of exports still applied

• support to small-scale fishing

Fisheries Resource Management and Subsidies : Lessons from Senegal

Situation of Subsidies in Senegal

• Mechanisms in support of exports

•Duty-free export company status was instituted by Act No. 95-34 of 29 December 1995.

•The main conditions are: export activities corresponding to not less than 80 % of turnover and payment of an industrial and commercial profits tax (BIC) at a rate of 15 %• Advantages arising from this status are essentially the following:

•Exemption from all duties and taxes•Exemption from VAT, customs stamps, registration and stamp duties, licences, etc.

Fisheries Resource Management and Subsidies : Lessons from Senegal

Situation of Subsidies in Senegal

• Policy of support to small-scale fishing•Aimed the modernization of this sub sector

• Policy of tax reductions on fishing equipment for motorisation of pirogues

• Fuel subsidy•Consider as a decisive factor in the modernization of fishing equipment, •facilitate the use of more powerful engines,•Contribute towards the enlargement of pirogues and helping to prolong sea trips and to open up new fishing areas.

Fisheries Resource Management and Subsidies : Lessons from Senegal

Situation of Subsidies in Senegal

- The fuel subsidy to small-scale fishing alone rose to 6 billion each year since 1998 - The cumulated amount granted by the Government inannual tax reductions for the purchase of outboard engines is 2.01 billion CFA - The overall impact of support policies are negative-They have boosted the fishing effort and conducted the sector to an situation of overcapacity - Support policies represent a burden on the State budget in a situation of economic crisis

Fisheries Resource Management and Subsidies : Lessons from Senegal

Next Steps on Fisheries Management in Senegal

Application of some recommended Policy Instruments:-Institution of licenses for small-scale fishing

-Annual fees-Criteria include the size of the pirogue small, medium or large)-An annual rebate fees for the local fishing councils -To institute Local Fishing councils as the legal frameworks for:

-Control of resource access-Insure the effective application of regulation-collect of fees

Fisheries Resource Management and Subsidies : Lessons from Senegal

Next Steps on Fisheries Management in Senegal - To conclude fishing agreements with foreigners on the stocks

which are not exploit by nationals

- To re-assess the issue of access’ price to resources in fishing agreements

- Place an observer on each Senegalese boat to insure that the regulations are respected

- Reinforce the means for surveillance with a more substantial spatio-temporal coverage

- Cancel all the subversive subsidies existing in the fishing sector ( free tax for fuel and fishing gears, facilities accorded for the exporters…)

Fisheries Resource Management and Subsidies : Lessons from Senegal

Thank you for your attention!

Fisheries Resource Management and Subsidies : Lessons from Senegal