Proposal for a Council Decision on the conclusion of the Agreement in the form of an Exchange of Letters relating to the provisional application of the Protocol modifying the Fourth Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other, with regard to the provision for experimental fisheries
Date: 2003-10-16
Institutions: European Commission
Subjects: European Union, Greenland, fishery management, fishing agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.10.2003
COM(2003)601 final

Proposal for a

COUNCIL DECISION

on the conclusion of the Agreement in the form of an Exchange of Letters relating to the
provisional application of the Protocol modifying the Fourth Protocol laying down the
conditions relating to fishing provided for in the Agreement on fisheries between the
European Economic Community, on the one hand, and the Government of Denmark
and the Local Government of Greenland, on the other, with regard to the provision for
experimental fisheries

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  Community  has  a  longstanding  relation  with  Greenland  on  fisheries.  The  Framework
Agreement dates back to 1985 and the latest Protocol is the fourth.

The  Fourth  Protocol  to  the  Fisheries  Agreement  between  the  European  Community  and  the
Government  of  Denmark  and  the  Local  Government  of  Greenland  expires  on  31  December
2006. However, according to Article 14 of the Protocol a Midterm Review was foreseen to be
finalised by 30 June 2003.

Further to the final round of negotiations which took place on 16-18 June in Athens, a Protocol
modifying the Fourth Protocol was initialled.

The modified Protocol covers the period from 1 January 2004 to 31 December 2006. Though
the financial contribution remains EUR 42,820,000 per year, there is now a clear distinction
between the budget support in compensation for  the fisheries possibilities; EUR 31,760,679
and the budget support for the structural reform of the fisheries policy; EUR 11,059,321.

The compensation for the fisheries possibilities is based on several changes:

– 

– 

– 

– 

The  deletion  of  “paper-fish”  such  as  Cod,  Blue  Whiting,  Capelin  in  Western
waters and Redfish in Western waters, as well as Catfish;

An  increase  in  quotas  of  800  tonnes  of  Atlantic  Halibut,  of  4,200  tonnes  of
Greenland  Halibut  in  Eastern  waters,  and  of  4,000  tonnes  of  Shrimps  in
Western waters, in accordance with scientific advice;

The  introduction  of  a  quota  of  1000  tonnes  of  Snowcrab,  in  accordance  with
scientific advice;

The introduction of a quota of 2,000 tonnes for all by-catches.

The budget  support  for the structural reform of  the fisheries policy  and sector  is  a  new  and
innovative  element,  which  shows  the  desire  of  the  two  Parties  to  contribute  to  the
development  of  sustainable  and  responsible  fisheries.  Furthermore,  the  amount  comprises  a
specific  amount  of  EUR  500,000  for  increasing  the  scientific  capacity  and  budget  of  the
Greenland Institute for Natural Resources.

In  order  to  streamline  the  Agreement  to  other  Third  Country  Agreements  with  financial
compensation, make it consistent with the reform of the Fisheries Policy, and in particular the
external Fisheries policy, new elements have been introduced:

The main elements of change are:

– 

The  introduction  of  a  yearly  revision  of  the  quotas  attributed  in  light  of
scientific  advice  and  the  introduction  of  a  restriction  of  the  number  of  boats
fishing at the same time in the same zone, as well as a possibility of revision in
the  light  of  the  agreement  for  the  allocation  of  catch  possibilities  between
coastal  countries  for  Greenland  Halibut.  This  in  order  to  avoid  over
exploitation of the resources.

– 

The introduction of payment of licences for all fishery, with rates based on 3 %
of  landing  prices.  The  rates  may  be  adapted  periodically  by  administrative

2

arrangement between the Parties, taking into account the market and fisheries
situation.  This is a completely new  and key element which should ensure the
sound  management  of  the  resources,  the  sound  management  of  Community
finances,  as  well  as  the  coherence  with  the  CFP  and  the  commitment  to
the  vessels  owners  participation.  The  financial
progressively 
contribution deriving from the direct payment of licences by the vessels owners
will be deducted from the Community compensation.

increase 

– 

The  introduction  of  the  possibility  for  experimental  fisheries  on  deep  sea
species, cephalopods and clams. This is an important part of the agreement, as
it  could  lead  to  a  needed  diversification  of  the  fisheries  in  Greenland  and
increase the fishing opportunities for Community vessels in the future.

In  view  of  the  above,  the  Protocol  modifying  the  Fourth  Protocol  is  considered  to  be  good
value  for  money  and  will  encourage  the  responsible  and  sustainable  exploitation  of  the
resources to the mutual benefit of the Community and Greenland.

The Parties agreed that the provisions on experimental fisheries apply from 1 July 2003. For
this  reason,  the  two  parties  initialled  an  Agreement  in  the  form  of  an  Exchange  of  Letters
providing for the provisional application of those provisions from 1 July 2003.

The Commission proposes, on this basis, that the Council adopt by decision the draft Agreement
in  the  form  of  an  Exchange  of  Letters  concerning  the  provisional  application  of  the  Protocol
modifying the Fourth Protocol concerning the provision for experimental fisheries, as set out in
the Protocol annexed, on a provisional basis with effect from 1 July 2003, pending its definitive
entry into force.

A proposal for a Council regulation on the conclusion of the Protocol modifying the Fourth
Protocol is the subject of a separate procedure.

3

Proposal for a

COUNCIL DECISION

on the conclusion of the Agreement in the form of an Exchange of Letters relating to the
provisional application of the Protocol modifying the Fourth Protocol laying down the
conditions relating to fishing provided for in the Agreement on fisheries between the
European Economic Community, on the one hand, and the Government of Denmark
and the Local Government of Greenland, on the other, with regard to the provision for
experimental fisheries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
300(2), first subparagraph thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

In  accordance  with  Article  14  of  the  Agreement  on  fisheries  between  the  European
Economic  Community,  on  the  one  hand  and  the  Government  of  Denmark  and  the
Local Government of Greenland, on the other2, the two parties held negotiations with
a view to determining the amendments to be made to the Fourth Protocol laying down
the conditions relating to fishing provided for in that Agreement.

As  a  result  of  these  negotiations,  a  Protocol  modifying  the  Fourth  Protocol  was
initialled on 18 June 2003.

The Protocol contains provisions on experimental fisheries which the Parties agreed to
apply from 1 July 2003. For this reason, the two parties initialled an Agreement in the
form  of  an  Exchange  of  Letters  providing  for  the  provisional  application  of  those
provisions  from  1  July  2003.  That  Agreement  should  be  approved,  pending  the
completion of the necessary procedures for its conclusion,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an Exchange of Letters relating to the provisional application of
the  Protocol  modifying  the  Fourth  Protocol  laying  down  the  conditions  relating  to  fishing
provided for in the Agreement on fisheries between the European Economic Community, on

1

2

OJ C…, …,p….
OJ L…., p.

4

                                                
the one hand, and the Government of Denmark and the Local Government of Greenland, on
the other, (“the modifying Protocol”) is hereby approved on behalf of the Community.

The texts of the Agreement in the form of an Exchange of Letters and of the modifying Protocol
are attached to this Decision.

Article 2

The Commission may conclude an administrative arrangement with the competent authority
of Greenland in order to modify the technical conditions referred to in Annex V of the Fourth
Protocol.

Article 3

The President of the Council is hereby authorised to designate the persons empowered to sign
the Agreement in the form of an Exchange of Letters in order to bind the Community.

Done at Brussels,

For the Council
The President

5

AGREEMENT

in the form of exchange of letters
relating to the provisional application of the Protocol modifying the Protocol laying
down the conditions relating to fishing provided for in the Agreement on fisheries
between the European Economic Community, on the one hand, and the Government of
Denmark and the Local Government of Greenland, on the other, for the period 1
January 2004 to 31 December 2006

Letter of the Government of Denmark and the Home Rule Government of Greenland

A.

Sir,

With  reference  to  the  Protocol,  initialled  on  25  June  2001,  setting  out  the  fishing
opportunities  and  the  financial  contribution  for  the  period  from  1  January  2001  to  31
December 2006, and to the Joint Committee Meeting of 16-18 June 2003, I have the honour
to  inform  you  that  the  Home  Rule  Government  of  Greenland  is  prepared  to  apply  the
modifications to the Protocol concerning the provisions for experimental fisheries, as set out
in the Protocol annexed, on a provisional basis with effect from 1 July 2003, pending its entry
into force, provided that the European Community is disposed to do the same.

In order to implement the provisions for experimental fisheries, the Greenland authorities will
communicate  to  the  European  Commission  all  available  scientific  information  and  data
(zoning,  observations,  etc.)  before  the  17  July  2003.  The  Greenland  authorities  will  decide
before  31  July  2003  the  allocation  of  licences  and  the  conditions  linked.  The  technical
conditions  referred  to  in  Annex  V  of  the  Protocol  may  be  modified  by  an  administrative
arrangement between the Parties.

Greenland  shall  implement  a  structural  reform  of  the  fisheries  sector  and  the  European
Community will provide a budgetary support programme in accordance with Article 11(6) of
the  Protocol  annexed  and  as  described  in  the  “Details  of  Implementation  for  a  budgetary
support for a structural policy in the fisheries sector in Greenland” annexed to this Exchange
of Letters.

The  modifications  of  the  Fourth  Protocol  are  following  the  guidelines  set  out  in  the
Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  on  an
integrated    framework    for    Fisheries    Partnerships    Agreements      with      Third  Countries
(COM(2002)637 final).

I  should  be  obliged  if  you  could  confirm  the  European  Community’s  agreement  to  such
provisional application.

Please accept, Sir, the assurance of my highest consideration

For the Government of Denmark and the Home Rule Government of Greenland

6

Letter of the European Community

B.

Sir,

I  have  the  honour  to  acknowledge  receipt  of  your  letter  of  today’s  date,  which  reads  as
follows:

“Sir,

With reference to the Protocol, initialled on 25 June 2001, setting out the fishing opportunities
and the financial contribution for the period from 1 January 2001 to 31 December 2006, and
to the Joint Committee Meeting of 16-18 June 2003, I have the honour to inform you that the
Home Rule government of Greenland is prepared to apply the modifications to the Protocol
concerning the provisions for experimental fisheries, as set out in the Protocol annexed, on a
provisional basis with effect from 1 July 2003, pending its entry into force, provided that the
European Community is disposed to do the same.

In order to implement the provisions for experimental fisheries, the Greenland authorities will
communicate  to  the  European  Commission  all  available  scientific  information  and  data
(zoning,  observations,  etc.)  before  the  17  July  2003.  The  Greenland  authorities  will  decide
before  31  July  2003  the  allocation  of  licences  and  the  conditions  linked.  The  technical
conditions  referred  to  in  Annex  V  of  the  Protocol  may  be  modified  by  an  administrative
arrangement between the Parties.

Greenland  shall  implement  a  structural  reform  of  the  fisheries  sector  and  the  European
Community will provide a budgetary support programme in accordance with Article 11(6) of
the  Protocol  annexed  and  as  described  in  the  “Details  of  Implementation  for  a  budgetary
support for a structural policy in the fisheries sector in Greenland” annexed to this Exchange
of Letters.

The  modifications  of  the  Fourth  Protocol  are  following  the  guidelines  set  out  in  the
Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  on  an
integrated  framework  for  Fisheries  Partnerships  Agreements  with  Third  Countries
(COM(2002)637 final).

I  should  be  obliged  if  you  could  confirm  the  European  Community’s  agreement  to  such
provisional application. “

I  have  the  honour  to  confirm  the  European  Community’s  agreement  to  such  provisional
application.

Please accept, Sir, the assurance of my highest consideration

On behalf of the Council of the European Union

7

Annex of the Exchange of Letters

Details of Implementation for a budgetary support for a structural policy in the fisheries
sector in Greenland

When  the  Greenland  Home  Rule  Government  presented  its  paper  on  a  general  structural
action plan (“A vision for the future”) to the Parliament in the autumn of 2000, it  appeared
clearly  that  it  did  not  include  arrangements  for  specific  sectors  of  industry  but  rather  a
description of the framework of conditions needed to develop Greenlandic industry in general
on the international front.

However, in the meantime a need for the formulation of a coherent structural policy for  the
fisheries  sector  has  occurred,  partly  because  the  cabinet  coalition  agreement  paper  stresses
that  “…it  will  work  for  a  commercial  and  political  separation  of  the  industry  and  its
companies  through  clearer  frameworks”,  and  “…  the  fisheries  sector  must  be  made
commercial/profitable”,  and  partly  because  the  fisheries  sector  has  such  a  fundamental
importance  for  the  Greenland  national  economy.  Both  above  mentioned  statements
presuppose that a structural policy is formulated for the fisheries sector and that it is relevant.

A structural policy for the fisheries sector will also meet the EU’s wishes in connection with
the  development  support  that  the  Greenland  Home  Rule  Government  will  be  receiving  as  a
result  of  the  conclusion  of  the  budgetary  support  agreement.  The  agreement  assumes  the
existence of  an  overall  long  term,  coherent  policy  within  a  sector-specific  area,  in  this  case
fisheries. Currently the Home Rule Government has no coherent fisheries policy, so this is a
good opportunity to draw up such a policy, too.

The  objective  of  the  sustainable  structural  fisheries  policy  is  to  create  a  framework  and
conditions,  which  will  provide  the  best  possible  conditions  for  industry  and  through  this
guarantee  continued  growth,  employment,  and  profits.  In  this  regard,  focus  will  be  on  the
fishing  industry,  but  it  should  be  seen  in  the  perspective  that  the  development  of  other
industry sectors is equally important.

A  structural  policy  for  the  fisheries  sector  will  only  define  indicators  for  the  desired
development.

The political approval, and hopefully the broadest possible approval, is an absolute necessity
for  creating  a  successful  structural  policy  for  the  fisheries  sector.  It  is  therefore  of  utmost
relevance that broad and strong political approval is behind these indicators that will emerge
from the forthcoming policy. As in all other sectors covered by the general structural policy, it
is  important  that  the  support,  political  as  well  as  administrative,  of  such  an  agreement  is
maintained  over  a  long  period  of  time  in  order  to  guarantee  proper  implementation  of  the
structural policy for the fisheries sector.

It is therefore of absolute importance that Greenland in its relations with the EU appears as a
reliable cooperation partner with a stable Government etc.

To sum up, the general objective of the future fisheries policy can be formulated as follows:

“We must achieve the maximum long term economic benefit of the
fishable resources existing in the Greenlandic waters”.

8

The policy pursued so far has to a large degree focused on issues of a more short term nature,
of which can be mentioned the following:

– 

Subsidies  including  among  others  things  a  minimum  price  system,  subsidies
for  petrol,  subsidies  for  the  development  of  industry  (ESU),  a  special  fishing
industry tariff on electricity and water, and capacity management.

– 

The issue of ownership which among other things includes

– 

– 

– 

a blend of the role of ownership and the role of authority

limitations on ownership of quotas

limitations on access to licences

One  of  the  aims  is  to  change  the  focus  on  the  problems  of  the  fishing  industry  so  that  the
considerations will become more predictable and long term oriented.  In this  connection, the
current problems  relating to  the  measurement of socio-economic  values and  profits must be
stressed. There is a need for an economic model for the fisheries sector in Greenland that will
contribute qualitatively to the estimation of socio-economic output and yields.

9

In  accordance  with  the  principles  of  good  governance,  the  general  structural  policy  action
plan  has  three  focus  points  which  alone  and  together  play  a  focus  role  for  the  long  term
strategy and development of the industry:

Change 
renewal 
societal structures

and/or
of

Better  structures  or
frameworks  for  the
private industry

Development 
qualifications

of

The problems and challenges that the formulation of a structural policy for the fisheries sector
represents are placed under the above focus points. There is a need to create a parallel to the
general  structural  action  plan,  also  to  fit  it  in  along  with  the  other  initiatives  of  a  structural
policy nature.

Regarding the future structural policy for the fisheries sector, there will be a continuous need
for public regulation of some sort. This will be done in accordance with the legislation in the
fisheries, tax and finance fields.

The aim is to present a proposal for a structural policy for the fisheries sector to the Greenland
Parliament for reading in the 2004 autumn session. A time schedule for the entire process is
given below. To meet this schedule all the initiatives must be described thoroughly - one by
one - in order for these initiative policies to be implemented in the global structural policy for
the  fisheries  sector.  Furthermore  it  is  the  intention  of  the  Home  Rule  Government  that  an
economic model should be elaborated and drawn up at the same time so that it can be used as
an  instrument  to  measure  what  initiatives  serve  the  society  best  and  to  show  the  actual
situation in the fisheries sector.

The following objectives apply to the focus points of all partial policies and to the structural
policy in general:

1.

2.

3.

4.

The objectives must be clear and achievable over time,

They must be measurable based on predefined indicators,

They must be controllable, and

Initiatives  implemented  or  carried  out  must  be  capable  of  evaluation  in  terms  of
goals.

Furthermore, it must also appear clearly what the  consequences will be if the  objectives  are
not achieved within the time limit given.

10

1.

THE FOCUS POINTS OF A STRUCTURAL POLICY FOR FISHERIES.

The elements of the individual focus points are listed below. This listing will also be used in
the formulation of the framework for the continued policy formulation.

1.1

Renewal of societal structures

The public sector in Greenland is very dominant in the global range of industries because of
the many publicly  owned companies  and because of the  special  geographical and  economic
conditions in Greenland where the public sector handles a number of subsidies and aids.

The  public  sector  has  to  a  large  degree  created  the  framework  for  the  development  of  the
Greenlandic  society  into  a  modern  welfare  society.  The  question  is,  however,  whether  the
public sector should continue to dominate the fisheries sector. The Government believes that
it  is  time  to  evaluate  what  the  future  role  of  the  public  sector  is  to  be  in  the  Greenlandic
fishing industry.

As regards the future fisheries policy, it is necessary to look at the following areas:

– 

– 

– 

– 

Logistics: The political objective is to ensure an infrastructure that support the
basic needs of the greenlandic business, including the fisheries.

Ownership:  The  political  objective  is  to  improve  the  operations  and  financial
position  of  the  Home  Rule  companies  to  enable  them  to  mature  and  be
privatised in whole or in part.

Subsidies: The political objective is to remove existing subsidies entirely or to
reduce  them  to  a  level  which  will  promote  the  industry’s  movement  towards
greater  market  orientation.  This  applies  to  both  direct  and  indirect  subsidies
including  the  existing  fishing  industry  tariffs  on  electricity  and  water,  the
minimum  prices  of  raw  materials,  oil  grants  for  vessels  and  the  existing
commercial support scheme (ESU).

Streamlining:  The  political  objective  is  to  carry  out  the  structural  adjustment
both on land and at sea in such a way that public grants and cross-subsidies are
significantly reduced.

1.2

Better framework for the fishing industry

The  Greenland  Home  Rule  Government  creates,  through  legislation  and  regulation,
frameworks and conditions for the fishing industry. This applies to areas such as:

– 

– 

– 

Investment: Provision  of  risk  capital.  The  framework  within  which  more  risk
capital can be provided for the improvement of Greenlandic fisheries, with the
ultimate aim of reducing public financial intervention.

Resource  management:  An  evaluation  of  the  existing  quota  system  and  the
technical control measures is required. The evaluation will have to be done in
order to maintain a sustainable development of the fisheries.

Biological advice: In the field of biological advice the political objective is to
improve the scientific knowledge of the biomass for fish and shellfish through
combined efforts,

11

– 

Development:  The  political  objective  is  to  find  and  develop  new  commercial
species  including  developing  methods  to  utilise  these  new  resources.
Utilisation  of  new  species  in  the  fisheries  will  be  done  with  respect  of  the
principle of sustainable development..

In all areas affecting the possibilities and conditions of the various companies, it is the task of
the  Government  to  secure  good  frameworks  and  conditions.  It  is  the  aim  to  ensure  that  the
efforts in each of these areas are coordinated to achieve a common goal.

1.3

Development of qualifications – education and labour market

The education and labour market policies play an important role for the development of the
public sector as well as the private sector in Greenland. The ability and willingness to learn is
a  precondition  if  the  industrial  political  frameworks  are  to  be  achieved  and  utilised  in  an
optimal  way.  One  of  the  challenges  facing  fisheries  is  the  ability  to  handle  the  necessary
continuous  development  of  employee  qualifications  throughout  the  fishing  industry  in
Greenland.

The precondition “strengthened development of qualifications” is among other things created
through:

– 

Education  and  labour  market:  The  political  objective  is  to  ensure  the
appropriate  use  and  development  of  the  available  labour  force  in  Greenland.
Structural adjustments will create a need to adapt the labour force to changed
or  new  forms  of  production  at  both  land-based  plants  and  on  board  fishing
vessels.

2.

THE CABINET’S 2004 BUDGET

The  Cabinet’s  2004  Budget  will  be  published  before  the  beginning  of  August  2003.  The
reading  of  the  Budget  will  take  place  during  the  2003  autumn  session  of  the  Greenland
Parliament, and the Budget is expected to be adopted on or before 15 November 2003.

The  Cabinet’s  2004  Budget  incorporates  an  increase  in  the  amount  appropriated  for
administration in the field covered by the Ministry of Fisheries, Hunting and Agriculture. This
increase  is  expected  to  improve  the  Ministry’s  possibilities  of  making  the  necessary
qualitative  evaluations  of  the  economic  consequences  of  various  initiatives,  for  example
through the establishment, follow-up, maintenance and analysis of fisheries economy models
both  within  Greenland  and  worldwide.  In  addition,  a  strengthening  of  the  Ministry’s  legal
responsibilities will improve the servicing of the Cabinet in terms of the regulatory aspects of
local, regional, bilateral and international fisheries.

12

3.

TIME SCHEDULE.

Time

Heading

Comments

30  June
2003

The 
support is decided

budgetary

August
2003

A  steering  group  is
set up

the  EU
The  Greenland  Home  Rule  Government  and 
Commission  make  an  agreement  on  budgetary  support.  The
agreement  is  described  in  the  Explanatory  Notes  to  the
Cabinet’s  2004  Budget,  which  will  be  presented  to  the
Greenland Parliament in the 2003 autumn session.

A steering group is set up to coordinate the whole project. Its
members  include  the  directors  of  the  departments  involved
(board secretariat, Office of Foreign Affairs, Dept. of Finance,
Dept.  Of  Fisheries,  Hunting  and  Farming,  Dept.  of  Business
and  Dept.  Of  Education,  Culture,  Church  and  Science),  with
the head of the structural policy office and the chairmen of the
individual  working  groups  as  delegates.  The  members  of  the
steering  group  meet  regularly  and  are  kept  up  to  date  on  the
progress made by the working groups.

August
2003

The  steering  group
sets 
three
up 
working groups

The  prepared  project  plan  for  a  structural  policy  for  the
fisheries  sector  is  adopted  by  the  steering  group.  The  project
plan must at least contain:

Three working groups on the focus points

1.  Renewal of societal structures

2.  Better framework for the fishing industry

3.  Development of qualifications

To achieve the broadest possible debate on a structural policy
for the fisheries sector the results of the working groups will be
presented  to  the  most  important  stakeholders  in  the  fishing
industry at a seminar.

August
2003

of 

Planning 
fisheries 
seminar is initiated

a
policy

End  of
Februar
y 2004

The working groups
deliver 
their  draft
for partial policies

The  individual  working  groups  have  finished  their  work  and
have  drawn  up  a  proposal  for  partial  policies  on  the  subjects
comprised by the focus point within which the working group
has been working.

May
2004

The Cabinet holds a
policy
fisheries 
seminar,  at  which  a
draft 
structural
policy  for  fisheries
is discussed

The  seminar  is  held  with  participation  of  the  most  important
stakeholders  in  the  fishing  industry.  Responses  are  invited  to
presentations  based  on  proposals  made  by  the  three  working
groups for partial policies.

13

August
2004

Autumn
2004

A proposal for a
structural policy
for fisheries is
delivered to the
Greenland
Parliament

The Greenland
Parliament’s
reading of the
proposal for a
structural policy
for the fisheries
sector

December
2004

First report to the
Commission

December
2005

Second report to
the Commission

The Cabinet delivers its proposal for a structural policy for the
fisheries sector in Greenland for reading during the autumn
session of the Greenland Parliament.

Measurable subjects for the rest of the budgetary support
agreement period 2005 and 2006 are specified in the report to
the Commission. In relation to the political reading of the
Cabinet’s proposal for a structural policy for fisheries in
Greenland, new goals have emerged in accordance with the
principles of the budgetary support area.

The second annual report to the Commission will be the first
with a report on the progress of the initiatives implemented
following the presentation of the structural policy for fisheries.
The evaluation of initiatives carried out can also be
incorporated into this report.

December
2006

Third report to the
Commission

The third and last report within Protocol IV. The report will
follow up on the initiatives implemented following the
presentation of the structural policy for fisheries.

14

PROTOCOL MODIFYING THE FOURTH PROTOCOL

laying down the conditions relating to fishing provided for in the Agreement on fisheries
between the European Economic Community, on the one hand, and the Government of
Denmark and the Local Government of Greenland, on the other

Further to the Joint Committee meeting of 16-18 June 2003, the Fourth Protocol is modified
as follows, with effect from 1 January 2004:

I.

Article 1 is replaced by the following text:

“Article 1

1.

2.

3

4

5

6

7

8

9

This Protocol shall apply to fishing activities from 1 January 2001 to 31 December
2006.

The quotas referred to in Article 2 of the Agreement shall be fixed each  year in the
light of available scientific information. They shall be calculated as the remainder of
Greenland’s total allowable catches after  subtraction  of the quantities referred  to in
the first paragraph of Article 7 of the Agreement and indicated in Article 2, but shall
not exceed the following quantities:

Species

Cod
Redfish
Greenland halibut
Shrimp
Atlantic Halibut
Capelin
Roundnose grenadier
snowcrab
Bycatches

Western  stock
(NAFO 0/1)

Eastern  stock
(ICES XIV/V)

pm3
0 4
1,5006
4,000
2008

1,350
1,000
2,00010

25,5005
 9,0007
5,675
1,0008
9

2,000

In  the  event  of  stock  recovery,  the  Community  may  fish  up  to  31,000  tonnes,  with  a  corresponding
increase  in  the  part  of  the  financial  compensation  referred  to  in  Article  11(2).  May  be  fished  East  or
West.
The Community may ask for an increase in the quota, by the end of November for the following year,
up  to  a  maximum  of  5,500  tonnes,  with  a  corresponding  increase  in  the  part  of  the  financial
compensation referred to in Article 11(2).
May be fished East or West and of which a maximum of 20,000 tonnes may be fished by pelagic trawl.
Catches  from  the  bottom  trawl  fishery  and  the  pelagic  trawl  fishery  shall  be  reported  separately.  The
Community may ask for an increase in the quota, by the end of November for the following year, up to
a maximum of 47,320 tonnes, with a corresponding increase in the part of the financial compensation
referred to in Article 11(2).
500 tonnes may be fished either North or South in agreement with Greenland authorities.
This figure may be revised in the light of the agreement for the allocation of catch possibilities between
coastal countries. The fishery shall be managed through a limitation on the number of vessels fishing at
the same time.
If bycatches by Community vessels of Atlantic halibut in trawl cod and redfish fisheries would imply
overruns of Community quotas of Atlantic halibut, the Greenland authorities will provide solutions to
the effect that Community cod and redfish fisheries nevertheless can continue until the cod and redfish
quotas have been exhausted.
7,7% of the capelin TAC for the season.

15

                                                
3.

4.

5.

The quota for  shrimp in East  Greenland  may be  fished in areas  West  of Greenland
provided that arrangements for quota transfers between shipowners from Greenland
and  the  European  Community  have  been  established  on  a  company-to-company
basis.  The  Greenland  Home  Rule  Government  shall  undertake  to  facilitate  such
arrangements.  The  transfers  of  quotas  can  only  take  place  within  a  maximum  of
2,000  tonnes  annually  in  areas  of  West  Greenland.  The  fishery  carried  out  by  the
Community  vessels  shall  take  place  on  the  same  conditions  as  laid  down  in  the
license issued to the Greenlandic shipowner.

Authorisations for experimental fisheries will be made available for a trial period of
maximum six month each, in accordance with Article 9 and Annex V.

When the Parties conclude that  the  experimental  campaigns  have  achieved positive
results,  the  Greenland  Home  Rule  Government  will  allocate  50%  of  the  fishing
opportunities  on  the  new  species  to  the  Community  fleet,  until  the  end  of  this
Protocol.  This,  with  a  corresponding  increase  in  the  part  of  the  financial
compensation referred to in Article 11(2).”

II.

Article 2 is replaced by the following text:

“Article 2

The quantities referred to in the first paragraph of article 7 of the Agreement are hereby set at
the following levels each year:

Species (tonnes)

Western 
(NAFO 0/1)

stock

Eastern 
(ICES XIV/V)

stock

(tonnes)

Cod

Redfish

Greenland halibut

Shrimp

50,00011

2,500

4,700

25,000

III.

IV.

Article 3 is deleted.

Article 9 is replaced by the following text:

“Article 9

5,000

4,000

1,500

“

The  Parties  shall  promote  the  conduct  of  experimental  fisheries  on,  inter  alia,  deep  sea
species,  cephalopods,  clams  and  capelin  (Western  stock)  in  Greenland  waters.  To  this  end,
they  shall  hold  consultations  whenever  one  of  the  Parties  so  requests  and  determine,  on  a

10

11

Refers  to  the  combined  by-catch  of  cod,  catfish,  skate,  ling  and  tusk.  The  by-catch  quantities  of  cod
shall not exceed 100 tonnes. May be fished East or West.
May be fished West or East

16

                                                                                                                                                        
case-by-case  basis,  relevant  species,  conditions  and  other  parameters.  The  Parties  shall
implement the experimental fishery in accordance with Annex V.”

V.

Article 11 is replaced by the following text:

“Article 11

1.

2.

3.

4.

5.

6.

The  financial  compensation  referred  to  in  Article  6  of  the  Agreement  shall,  during
the  period  of  validity  of  this  Protocol,  be  fixed  at  42,820,000  Euro  (€)  payable
annually at the beginning of each fishing year.

The  part  of  the  financial  compensation  representing  31,760,679  Euro  (€)  is
considered to be the amount in return for fishing possibilities. That amount shall be
adjusted during the course of each fishing  year where any supplementary quota  are
allocated to the Community in excess of the quota quantities referred to in the table
in Article 1. The adjustment shall be calculated on the basis of the market prices of
the different species for which the supplementary quota are allocated.

Greenland shall make available to the Community a quantity of 20,000 tonnes of cod
equivalents,  which  the  Community  may  use  for  the  purposes  of  acquiring
supplementary  catch  possibilities.  The  adjusted  compensation  referred  to  in
paragraph 2 may consist of up to 50% of these cod equivalents.

The  procedure  to  be  followed  as  regards  the  allocation  of  supplementary  catch
possibilities under Article 8 of the Agreement is set out in Annex III.

The  financial  contribution  deriving  from  the  direct  payment  of  licences  by  the
vessels owners will be deducted from the Community global compensation as set out
in  Article  11  (1).  The  licence  fees  per  species  and  per  tonnes  allocated  to  vessels
shall be set in accordance with Annex VI. The implementing technical modalities for
the attribution of fisheries licences shall be agreed by an administrative arrangement
between the Parties.

Greenland  shall  implement  a  budgetary  support  to  the  fisheries  sector  for  the  three
remaining  years  of  the  Protocol  in  accordance  with  the  policy  commitments
undertaken  in  the  Greenland  Prime  Ministers  letter  to  President  Prodi  of  12  June
2003.  The  orientations  on  strategy  and  objectives  of  the  reform  of  the  Greenland
fisheries policy, as defined and programmed independently and autonomously by the
Greenland  Home  Rule  Government,  as  well  as  the  technical  details  concerning  the
definition,  the  implementation  and  the  monitoring  of  the  budget  support  to  the
fisheries  sector  in  Greenland  shall  be  determined  in  an  administrative  arrangement
between  Greenland  and  the  European  Community.  Greenland  shall  affect  500,000
Euro (€) to increase the budget of the Greenland Institute of Natural Resources.”

VI.

Article 14 is replaced by the following text:

“Article 14

No later than 30 June 2005 the Parties shall assess the implementation of this Protocol in view
to prepare the negotiations for the next Agreement. ”

VII. Annex I is deleted.

17

VIII. Annex V is added, as follows:

“Annex V

Details of implementation for experimental fisheries

The Home Rule Government of Greenland and the European Commission shall jointly decide
on the European Community operators, the most suitable time as well as the arrangements for
the implementation of experimental fisheries. In order to facilitate the exploratory work of the
vessels, the Home Rule Government of Greenland (through the Greenland Institute of Natural
resources) shall provide existing scientific and other basic information.

The Greenland fishing industry shall be closely associated (co-ordination and dialogue on the
arrangements for experimental fisheries).

Length of the campaigns: maximum six month and minimum three month, unless changed by
the parties in agreement.

Selection of candidates for the implementation of the experimental campaigns:

The  European  Commission  shall  communicate  to  the  Greenland  authorities  the  requests  for
licences for experimental fishery. A technical dossier specifying:

– 

– 

– 

the technical characteristics of the vessel;

the level of expertise on the fishery of the ship officers;

the  proposal  for  the  technical  parameters  of  the  campaign  (length  ,  gear,
exploration regions etc. )

The  Home  Rule  Government  of  Greenland  will  organise  a  technical  dialogue  between  the
administrations of the  Greenland Government and the European Commission  with the  ship-
owners concerned, if it considers this necessary.

Before  the  beginning  of  the  campaign,  the  vessel  owners  shall  submit  to  the  Greenland
authorities and to the European Commission:

– 

– 

– 

a declaration of the catches already on board;

the technical characteristics of the fishing gear to be used for the campaign;

an assurance that they comply with the Greenland Regulations for fisheries;

During the campaign at sea, the owners of the vessels concerned shall:

– 

– 

– 

provide the Greenland Institute of Natural Resources, the Greenland authorities
and the European Commission with a weekly report on catches per day and by
haul,  including  the  description  of  the  campaign’s  technical  parameters
(position, depth, date and time, catches and other observations or comments);

communicate the vessel’s position, speed and heading by VMS;

ensure  the  presence  on  board  of  one  Greenlandic  scientific  observer  or  an
observer chosen by the Greenland authorities. The role of the observer will be

18

to  gather  scientific  information  from  the  catches,  as  well  as  to  sample  the
catches. The observer shall be treated as a ship’s officer and the vessel-owner
shall cover the living costs  of the  observer during  his  stay  on the  vessel.  The
decision  on  the  observers  time  on  board,  the  length  of  his  stay,  the  boarding
and landing harbour will be fixed in agreement with the Greenland authorities.
Unless  there  is  agreement  between  the  parties  to  the  contrary,  the  vessel  will
never be obliged to put into harbour more than once per two month;

submit the vessels to inspection on leaving Greenland’s waters if the Greenland
authorities so request;

ensure that they comply with the Greenland Regulations for fisheries;

– 

– 

The  catches  including  the  by-catches  obtained  during  the  scientific  campaign  remain  the
property of the vessel-owner.

The  Greenland  authorities  will  designate  a  contact  person  responsible  for  addressing  any
unforeseen problems that might hinder the development of the experimental fisheries.”

IX.

Annex VI is added as follows:

“Annex VI

Licence fees

The following rates12 shall apply:

EUR. Per tonne

Species

Redfish

Greenland Halibut

Shrimp

Atlantic Halibut

Capelin

Roundnose Grenadier

Snowcrab

52

85

74

199

7

10

122

12

The rates may be adapted periodically by administrative arrangement between the Parties, taking into
account the market and fisheries situation.

19