Robert Matau






The Parties to the Nauru Agreement (PNA) member nations will be heading to the Northern Pacific this month to discuss commercial arrangements with major tuna processors in their areas.
  Speaking from their newly opened Majuro office, PNA Director Dr Transform Aqorau said their first meeting with the major tuna processors is scheduled for the 24th of February in Palau.
  He said the secretariat has sent invitations to the tuna processors and the secretariat was awaiting their response.
  Amongst the major processors in PNA waters are Tri-Marine, Thai Union.
  “This is unprecedented as most of our dealings to date have been with flag States and vessel operators,” Aqorau said.
  “However, the PNA is looking at changing the nature of this relationship by dealing directly with the tuna processors and develop strategic relationships with them.”
  Aqorau said the PNA will promote and protect the commercial interests of the Parties and provide ongoing strategic leadership with respect to the region’s surface fisheries and tropical longline fisheries, which PNA has been doing since 1982.
  In October last year, PNA members were engaged in exploratory talks on issues like the United States’ South Pacific Tuna treaty (SPTT)with FFA members.
 
  Exploratory talks
  At the October meeting in Honiara, the Pacific Islands Forum Fisheries Agency (FFA) members and the US expressed a shared interest in renegotiation on three key elements:
  • licensing arrangements including financial and economic aspects;
  • fishing opportunities available to US flagged vessels; and
  • the duration of an extension of the treaty arrangements.
  The current SPTT agreement expires on June 14, 2013.
  The US pays US$21 million a year to fish in Pacific waters.
  The US Treaty enables US purse seine fishing vessels to fish in the waters of the 16 Pacific Islands Parties which are: Australia, Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
  The Pacific Islands Parties and the US have also agreed that they continue the renegotiations based on an established timetable that aims to complete the renegotiation by March 2012, one year before the actual expiry of the current treaty arrangement. 
  Dr Aqorau said the parties agreed to have more serious discussions this year.
  PNA now wants the US to revert to the Vessel Day Scheme (VDS), and not the treaty’s 40 purse seiners as the benchmark, a move Washington through the Tuna Association is resisting.
  In 2004, there were only 22 US vessels fishing under the treaty in PNA waters but since then, that number has gone up to 40 fishing boats; some of them former European, Korean and Taiwanese vessels fishing under the US flag, managing director of PNG’s National Fisheries Authority Sylvester Pokajam said last year.
  The Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau, Papua New Guinea, Solomon Islands and Tuvalu—are members of PNA.
  They are the owners of the largest 200-mile exclusive economic zones (EEZ) in the Pacific Ocean and thus lay claim to the greater portion of the world’s last remaining healthy stocks of tuna.
  Last year ISLANDS BUSINESS reported that once a secretariat is opened and a Tuna Corporation set up, PNA will control pricing in much the same way as OPEC—the Organisation of Petroleum Exporting Countries—controls oil supplies to influence prices today.
  Aqorau said in respect to the development of the resources, the PNA Office will facilitate the promotion of meaningful participation and benefits for the people and future generations.
  “There are already a number of initiatives which the PNA has developed.
  “These are the Vessel Day Scheme and the FSM Arrangement for Regional Access.
  “In respect to the administration of the PNA Management Initiatives, the PNA secretariat will serve the commercial needs and aspirations of the parties.
  Over the course of the next 12 months, the goal of the PNA Office would be to:
  • administer the VDS, in particular, the establishment and implementation of trading schemes and mechanisms;
  • develop mechanisms for the administration of current and future PNA management initiatives;
  • establish/maintain effective external relations with appropriate government and private enterprise involved in the tuna fishery;
  • investigate the transfer of the administration and management of funds under the FSM Arrangement and the VDS which are managed by FFA to the PNA Office.
  Aqorau said the goals of the PNA Office would be to facilitate the establishment of a commercial arm of PNA to maximise economic opportunities. 
  He said in the long-term, PNA may consider whether the catches of tuna caught in PNA waters are owned by the foreign access flag or remain the property of the PNA.
  “The PNA may also consider whether PNA may contract boats to catch tuna rather than sell licences, and explore common processing investments, for example PMIZ (Pacific Marine Industrial Zone) in Papua New Guinea.
  “The PNA may also consider contract processing of PNA fish, trade canned tuna either directly or through a joint venture with established traders.
  “In the long-term, PNA may look at developing a PNA certification system of fish caught in PNA waters, and demand increased employment at sea at all levels not just deckhands and observers.”
  Aqorau said PNA may also demand employment and even equity in non-PNA plants wishing to receive PNA fish to process.
  For the time being, the Majuro office will continue to look at securing maximum economic gains and the dynamics in fisheries.
  “The PNA initiative to assert greater control of, and secure greater rights to the region’s tuna fishery is being undertaken against changes to the fisheries dynamics which provide them the opportunity to explore innovative ways to maximise economic gains from the region’s tuna resources,” he said.
  “Some of these changes include the increasing importance of the western and central Pacific to the global tuna industry, better compliance, and increasing value of the tuna fishery. 
  “These factors now provide PNA the opportunity to explore different dimensions to their dealings with fishing States, and develop innovative ways in which to maximise economic gains from the region’s tuna fisheries.
 
  Tuna revenue
  The western and central Pacific tuna fishery is worth US$3 billion. It provides 54% of the global tuna supply (Source: InfoFish). 
  Tuna catch in PNA waters are approaching 1.4 million metric tonnes annually (Source: FFA/SPC) and this accounts for approximately half of the western and central Pacific tuna catch and value. 
  The total access revenue to the PNA is approximately US$60 million or a nominal 5% of the traditional value annually. [Source: World Bank 2008]. 
  At current high prices, this is conservatively estimated at US$4 billion, yet the return to PNA is considerably less than 5%. 
  Aqorau said for PNA, where fishing access can account for about one-third of their respective national budgets, the returns have not increased.
  “PNA wants to see more equitable shares of profits while ensuring the profits of the industry are sustained through maintaining high fish prices, limiting access and supply,” he said. 
  “By creating an enabling environment through these initiatives, the PNA can achieve more meaningful benefits. Even if PNA took just 10% of the “super” profits now being achieved due to a near doubling of fish prices in the last two years, the PNA can achieve approximately a three-fold increase in revenue. 
  “The PNA must also develop innovative alternative development options to maximise direct and indirect benefits in commerce and employment. PNA must get more value from their resource,” Aqorau said.
  This can be done in a broad sense, and will require the following:
  • Ensure sustainability by imposing limit;
  • Limit and conserve in ways that add value for resource owners; and
  • Create new partnerships  and alliances.