WORLD TRADE  
ORGANIZATION  TN/MA/W/63 
18 October 2005 
 (05-4782) 
Negotiating Group on Market Access Original:   English 
  
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Liberalisation of trade in fish and fish products
 
 
Communication from Canada, Iceland, New Zealand, Norway, Singapore and Thailand 
 
 The following communication, dated 14 October 2005 is being circulated at the request of the Delegations of Canada, Iceland, New Ze aland, Norway, Singapore and Thailand. 
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I. SUMMARY 
1. Fish and fish products have been traded over vast geographic distances for centuries. For 
many economies, trade in fish and fish products represents a significant source of foreign exchange 
earnings and plays an important role in income ge neration, employment and source of food. Since, in 
many economies, the prosperity of this sector relie s largely on international trade, secure and stable 
export markets are particularly important for fish and fish products.  Fish production has increased 
significantly at the global level over the past decades, in particular in developing countries. 
Developing countries are today among the world’s largest producers and traders and represent a 
constantly increasing share of both production and trade.1 
 2. Significant barriers to trade still exist in this sector. After 8 rounds of multilateral tariff 
negotiations in the GATT, expansion of trade is inhi bited by tariff peaks and high tariffs in important 
markets. In addition, tariff escalation resulting in increased tariffs on processed products poses a 
significant obstacle to development of viable pro cessing industries, in particular in developing 
countries. Non-tariff barriers are often a further obst acle to expanding trade. A sectoral agreement on 
fish and fish products resulting in the eliminati on or substantial reduction of tariffs would be an 
important contribution in facilitating further econo mic development within a sector of particular 
export interest to many developing countries, which constitute roughl y two thirds of WTO 
membership.   
II. BACKGROUND 
3. Global production from capture fisheries and aquaculture was about 146 million tonnes in 
2003, of which about 55 million tonnes came from  aquaculture. The expansion of fisheries 
management regimes is an important component in ensuring the sustainability of the resource. The 
increase in aquaculture production is taking pla ce  predominantly in developing countries. 
Technological developments in aquaculture are inst rumental to the sustainable expansion of the 
industry. The contribution of aquaculture to global supplies of fish and fish products increased from around 5% of total production in 19 70 to around 37% in 2003, t hus reducing the pressures on fish 
stocks.  
                                                     
 
1  All figures from: FISHSTAT Plus, FAO Fisheries Department, Fishery Information, Data and 
Statistics Unit.  
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 4. The fish-processing industry is gradually ch anging and becoming more globalised. Industrial 
processing is increasingly taking place at locations other than the country of origin of the fish. This applies to both basic industrial processes and more  advanced processes such as the development of 
new and higher value products. This  is an expanding industry, partic ularly in developing countries, 
which provides a source of employment , economic growth and development. 
 
5. The total value of world exports of fish  and fish products in 2003 was USD 64 billion, 
representing an increase of 54% in comparison with th e export level in 1993. Around half the world’s 
exports come from developing countries and deve loped countries represent more than 80% of 
imports. For developing countries fish is a very important foreign exchange earner. In 2003, for 
example, the value of exports of fish and fi sh products from developing countries exceeded the 
combined
 total net value of exports of coffee, coco a, bananas, rubber, sugar, tea and rice.  
 
6. These developments are taking place despite the remaining plethora of barriers to trade that 
affect developed and developing countr ies alike in this sector. Fish and fish products continue to face 
higher tariffs than many other NAMA products. The bound average tariff is 33% on fish compared to 
29,6% on all non-agriculture products  (including fish). These averages hide a number of high tariffs 
and tariff escalation in developed countries. In a ddition, tariffs on fish and fish products generally 
remain high in developing countries and pose a ba rrier to increased south-south trade. Tariff 
escalation is particularly prevalent for fish and fi sh products. In many markets tariffs on processed 
products remain very high, and are, in practice, prohibitive thereby limiting the development of this 
industrial sector.    
 7. Fish and fish products also face a number of  non-tariff barriers. The complexity and lack of 
transparency of these NTBs can be an additional burde n to trading in fish pro ducts, in particular for 
developing countries without the technical capacity to meet the various requirements. The problems 
vary according to the products and markets involved.  
 
III. OPTIONS FOR A SECTORAL ON FISH AND FISH PRODUCTS 
8. The ultimate goal of a sectoral agreement woul d be to eliminate or substantially liberalise 
tariffs and address unjustified non-tariff barriers within  the sector. In order to achieve this goal, the 
interests and needs of participating members will have  to be duly reflected. Particular issues relevant 
to LDCs, for instance questions related to prefer ential exports, are among the matters that could be 
discussed taking into account specific input from the Members concerned. The final scope and 
modalities for a sector agreement on fish and fish products and the exact nature of special and 
differential treatment would be questions for negotiation among the interested parties.   
 
9. These negotiations should be  guided by the following: 
 - The coverage of any sectoral arrangement shoul d be as wide as possible in order to include 
fish and fish products at all stages of processing.  
- The concept of “critical mass” in order to incl ude major producers, importers  and exporters. 
- Several alternative approaches could be ta ken into account in designing special and 
differential treatment for developing countries. These might include:  
 
a)  zero for zero  b) zero for x harmonisation c)  tariff harmonisation 
d)  credits for participation if this is ag reed as part of the modalities for the formula 
e)  longer implementation periods and/ or different implementation patterns  
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 10.  Without prejudice to the modalities for liber alisation within the sector as outlined in 
paragraph 9 third tiret above, the sector should include:   - HS 0509   (sponges)   
- HS 0511.91  (fish unfit for human consumption) 
- HS 03   (fish and fish products) 
- HS 1504.10  (fishoil)  
- HS 1504.20  (fishoil) 
- ex HS 1603  (juices and extracts of meat and fish)  
- HS 1604  (prepared or preserved fish)  
- HS 1605  (prepared or preserved crustaceans and molluscs) 
- HS 2301.20  (fishmeal)  
 
IV. CONCLUSION 
11. Global consumption of fish and fish produc ts continues to expand. Demand for high value 
fish products has increased significantly. The globalisation of the fish processing industry has 
provided new opportunities for developi ng countries, making them by far the largest producers of fish 
and fish products, accounting for more than half of world trade in this sector. Further liberalisation of 
trade in fish and fish products provided by a we ll-developed sectoral initiative would be an important 
contribution to unleashing the full potential of this i ndustry providing substantia l benefits to the WTO 
membership as a whole, and to developing countries in particular.  
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