Country Report Comoros June 2011

Foreign trade and payments: New fisheries protocol is adopted by the EU

In late April the European Parliament adopted a revised fisheries protocol with Comoros, almost five months after the expiry of the previous deal. This followed the approval of the protocol by the EU fisheries ministers late last year (March 2011, Foreign trade and payments). The new arrangement redefines fishing opportunities for EU vessels. Previously 40 tuna seiners and 17 surface longliners were permitted to catch tuna in Comorian waters, paying EUR390,000 (US$480,000) a year. Under the new protocol 70 vessels-45 tuna seiners and 25 surface longliners from France, Italy, Portugal and Spain-will be allowed to fish. However, the annual reference tonnage has been cut from 6,000 to 4,850 tonnes. In line with this, the EU's financial contribution will fall from EUR390,000 to EUR315,250 per year. Beyond the agreed limit, fishing vessels will pay a penalty of EUR65/tonne.

Comoros will receive other funding, however. For example, the EU has agreed additional funding of EUR300,000 a year to develop sectoral infrastructure. Lack of infrastructure-notably processing and storage facilities-has long acted as a constraint on development of the sector, and the infrastructural funding is specifically designed to enable EU vessels to land their catches in Comorian ports rather than, as at present, having to transport them to the Seychelles and other destinations. As well as boosting costs, this is deemed to be increasingly risky given the upsurge of piracy in the Indian Ocean.

There have been concerns locally that greater industrialisation of a sector that is currently dominated by Comorian inshore fishermen using canoes (galawas) could lead to overfishing, the depletion of stocks and reduced biodiversity. (A reduction in biodiversity could damage Comorian attempts to position itself as an eco-tourism destination.) However, the authorities appear to be more sanguine (or rapacious), since the new agreement allows for "experimental fishing" for periods of up to six months. If the results are positive, Comoros could allocate quotas for new species, boosting its earnings further.

In agreeing to the new protocol, members of the European Parliament emphasised that they had to be "more involved" in monitoring the fisheries deal, with regular publication of detailed information on its implementation. In addition, the new agreement includes an automatic review as well as suspension clauses, which give the EU some room for manoeuvre in case of irregularities, human rights violations or major political upheaval. Although this is not specific to Comoros-the European Parliament has insisted that such clauses be included in all fisheries agreements-it has obvious relevance to the country given its long history of political instability.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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