Fisheries in the Seychelles and Fisheries Agreements with the Eu

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DIRECTORATE-GENERAL FOR INTERNAL POLICIES OF THE UNION POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

FISHERIES

FISHERIES IN THE SEYCHELLES AND FISHERIES AGREEMENTS WITH THE EU

NOTE

This document was requested by the European Parliament’s Committee on Fisheries.

AUTHOR

Jesús Iborra Martín Policy Department on Structural and Cohesion Policies European Parliament E-mail: [email protected]

EDITORIAL ASSISTANT

Virginija Kelmelyté

LANGUAGE VERSIONS

Original: ES. Translations: DE, EN, FR, IT.

ABOUT THE PUBLISHER

To contact the Policy Department or to subscribe to its monthly newsletter, please write to: [email protected]

Manuscript completed in September 2011. Brussels, © European Parliament, 2011

This document is available on the Internet at: http://www.europarl.europa.eu/studies

DISCLAIMER

The opinions expressed in this document are the sole responsibility of the authors and do not necessarily represent the official position of the European Parliament.

Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy.

DIRECTORATE-GENERAL FOR INTERNAL POLICIES OF THE UNION POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

FISHERIES

FISHERIES IN THE SEYCHELLES AND FISHERIES AGREEMENTS WITH THE EU

NOTE

Content:

Information note on the fisheries and aquaculture sector in the Seychelles for the Delegation of the Committee on Fisheries from 1 to 5 November 2011. The note describes fisheries in the Seychelles and related activities. It also describes the development of the fisheries agreements concluded between the Seychelles and the European Union.

IP/B/PECH/NT/2011_04 September 2011

PE 460.060 EN

Fisheries in the Seychelles and Fisheries Agreements with the EU

TABLE OF CONTENTS

TABLE OF CONTENTS 3

LIST OF ABBREVIATIONS 5

INDEX OF TABLES 7

INDEX OF GRAPHS 7

INDEX OF MAPS 8

OVERVIEW 9

1. GENERAL INFORMATION 13 1.1. Geography 13 1.2. Population 16 1.3. Political and administrative structure 16 1.4. Economy 18

2. OCEANOGRAPHY 21

3. FISHERY RESOURCES AND THEIR EXPLOITATION 23

4. SEYCHELLES FISHERIES SECTOR 31 4.1. Fishing activity in the Seychelles 32 4.2. Prospects for the Seychelles fisheries sector 34 4.3. Fisheries management in the Seychelles 36 4.4. Fish processing industry 40 4.5. Fish marketing and distribution 42 4.6. Aquaculture 43

5. SEYCHELLES FISHERIES AGREEMENTS 45 5.1. Fisheries Agreements between the Seychelles and Third Countries 47 5.2. EU-Seychelles Fisheries Agreements 47

PIRACY IN THE INDIAN OCEAN 53

3 Policy Department B: Structural and Cohesion Policies

4 Fisheries in the Seychelles and Fisheries Agreements with the EU

LIST OF ABBREVIATIONS

ACP Africa, Caribbean, Pacific

AfDB African Development Bank

BIOT British Indian Ocean Territory

WB World Bank

IOTC Indian Ocean Tuna Commission

EC European Communities

ICCAT International Commission for the Conservation of Atlantic Tunas

CNROP Centre National de Recherche Océanographique et des Pêches

IOC Indian Ocean Commission

COMESA Common Market for Eastern and Southern Africa

DBS Development Bank of the Seychelles

FAD Fish Aggregating Device

FAO Food and Agriculture Organization of the United Nations

FBOA Fishing Boat Owner’s Association

EDF European Development Fund

GEF Global Environment Facility

IMF International Monetary Fund

IEO Instituto Español de Oceanografía

IFREMER Institut Français de Recherche pour l'Exploitation de la Mer

IUU Illegal, unreported and unregulated fisheries

IRD Institut pour la Recherche et le Développement

IOT Indian Ocean Tuna Ltd

IOTC Indian Ocean Tuna Commission

IPA Investment Promotion Act

MTC Maritime Training Centre

GDP Gross Domestic Product

5 Policy Department B: Structural and Cohesion Policies

PNG Papua New Guinea

SADC Southern African Development Community

SFA Seychelles Fishing Authority

SIBA Seychelles International Business Authority

VMS Vessel Monitoring System

SPA Seychelles Port Authority

SWIOFP Southwest Indian Ocean Fisheries Project

TAC Total Allowable Catch

GRT Gross Registered Tonnes

IUCN International Union for Conservation of Nature

WWF World Wildlife Fund

YES Youth Enterprise Scheme

EEZ Exclusive Economic Zone

6 Fisheries in the Seychelles and Fisheries Agreements with the EU

INDEX OF TABLES

Table 1: Island groups in the Seychelles 15 Table 2: Protected Areas 37 Table 3: Main elements of the EU-Seychelles agreements 51 Table 4: Main hijacks of fishing vessels by Somali pirates 55

INDEX OF GRAPHS

Graph 1: Seychelles rupee exchange rate against the euro and US dollar 20 Graph 2: Productivity of Seychelles waters 22 Graph 3: Total catch in Seychelles waters 25 Graph 4: Catch by species. 3-year moving averages 26 Graph 5: Catch by type of gear. 3-year moving averages 28

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INDEX OF MAPS

Map 1: Geography of the Seychelles 13 Map 2: Seychelles Exclusive Economic Zone 14 Map 3: Bathymetry of the Indian Ocean 21 Map 4: Purse seine tuna catch in the Indian Ocean 27 Map 5: Protected areas in the Seychelles 38 Map 6: Area covered by the Indian Ocean Tuna Commission (IOTC) 40 Map 7: Somali pirate attacks 2005-2010 54

8 Fisheries in the Seychelles and Fisheries Agreements with the EU

OVERVIEW

The Republic of Seychelles is a group of around 115 islands situated in the Indian Ocean approximately 1 500 kilometres to the north-east of Madagascar and 1 600 kilometres to the east of Kenya.

In July 2011 the Republic of Seychelles had a population of 89 188. Around 80% of the population live on the island of Mahé. Despite this concentration, only around 55% of the population live in urban areas.

Victoria is the capital and the largest city in the archipelago. It is on the island of Mahé and has a population of around 30 000. Its port is the main tuna landing and trans-shipment point in the region.

The human development index, life expectancy and literacy rates of the Seychelles are all high, as a result of public investment in social protection, health and education.

The Seychelles gained their independence from the United Kingdom in 1976, but remain a member Republic of the Commonwealth of Nations. Since independence, the Republic has been governed by the People’s Party (Parti Lepep, known as the Seychelles People’s Progressive Front until 2009).

The Seychelles face the limitations and constraints typical of a small island nation with few inhabitants, which is remote from the mainland and has limited natural resources. Its economy is heavily dependent on a small number of economic sectors, tourism and fishing- related activities. This dependence makes it extremely vulnerable not only to international crises, but also to the political or commercial decisions of its partners, environmental damage and the consequences of climate change. In the last 10 years, the Seychelles have faced serious economic problems, which have led to the adoption of severe restrictions on public spending and privatisations.

FISHERY RESOURCES AND THEIR EXPLOITATION

Commercial fishing in the Indian Ocean is focused on a small number of highly migratory species, mainly tunas. These are caught by fleets flying around a dozen different flags. There are Asian vessels (from Taiwan, Japan, South Korea, the Philippines and China), vessels that are foreign owned but Seychelles-registered, vessels from EU Member States, and vessels that fly flags of convenience. In general they use longlines and purse seines.

The fisheries sector in Seychelles waters consists of the following: the small-scale fleet, which uses small motorised vessels that fish for demersal and semi-pelagic species in the local area; the semi-industrial fleet, which uses longliners that are between 14 and 22 metres in length and that catch large pelagic species (mainly tuna and swordfish); and the industrial fleet, which uses large purse seiners and longliners that are generally foreign owned and concentrate on fishing for tunas (skipjack tuna, yellowfin tuna and bigeye tuna).

9 Policy Department B: Structural and Cohesion Policies

Currently, 69% of the catch is taken using purse seines, 17% with longlines and 11% using pole-lines.

As highly migratory species, the movements of the tunas tend to vary considerably. As a result, their catch in a given area is always subject to large variations. In addition, Somali pirate attacks have led to a reduction in fishing effort, particularly since 2008.

There is some concern within the IOTC about the purse seining of juvenile yellowfin tuna using Fish Aggregating Devices (FADs), despite these appearing to be on the decline. Bigeye stocks are affected by illegal, unreported and unregulated (IUU) catches. In order to tackle this situation, the IOTC only authorises fishing by Contracting Party vessels that have been declared and registered in a public list. It has also decided to freeze the fishing effort at 2003 levels. In addition, during 2011 and 2012 there is a moratorium off the Somali coast (0°-10° North / 40°-60° East) from 1 February to 1 March for longliners and from 1 November to 1 December for purse seiners.

SEYCHELLES FISHERIES SECTOR

Fishing-related activities form a pillar of the Seychelles economy. Their contribution to GDP and foreign exchange exceed that of tourism. Exports of fishery products account for over 90% of all exports.

The Seychelles Exclusive Economic Zone is at the centre of the south-west Indian Ocean tuna fishing area.

Victoria is the closest point to 90% of the region’s tuna fishing areas, it is less than two days’ sailing from the region’s fishing grounds, and it is outside the area affected by cyclones.

Around 80% of the tuna catch in the south-west Indian Ocean is landed or trans-shipped in the port of Victoria.

The fisheries sector in the Seychelles requires significant investment and has high operating costs in relation to its limited productivity. It is also facing a shortage of workers with adequate professional training and shortcomings in its infrastructure.

There is a large tuna cannery (operated by Indian Ocean Tuna), which is one of the largest canneries in the world and the main employer in the Seychelles. The Seychelles economy is heavily dependent on IOT’s operations, which are in turn highly dependent on the European Union market. Given its relatively high cost, any erosion of the preference for importing Seychelles tuna into the EU could have wide-ranging economic repercussions. This could happen as a result of the tariff concessions granted to certain countries, such as the derogation from rules of origin applicable to Papua New Guinea.

There are only two aquaculture production facilities, one producing black-lip oysters (Pinctada margaritifera) and the other producing maxima clams (Tridacna maxima), both of which are located on Praslin. A shrimp production facility closed in 2008.

10 Fisheries in the Seychelles and Fisheries Agreements with the EU

SEYCHELLES FISHERIES AGREEMENTS

The Seychelles have concluded agreements with the European Union, Japan, South Korea and Taiwan. All these agreements focus on catches of highly migratory species (tunas, swordfish or sailfish) in the open sea.

The agreement concluded with the EU is one of a series of tuna agreements in the Indian Ocean, and has developed from the 1984 Fisheries Agreement to the Fisheries Partnership Agreement signed in 2005.

This agreement allows Community vessels – both purse seiners and, to a much lesser extent, longliners – to fish for tuna in Seychelles waters.

Longliners are currently making very little use of their fishing opportunities. As for purse seiners, although their fishing opportunities were well used until 2007, this has declined considerably and now the main beneficiaries of the agreement are Spanish and French vessels.

In exchange for access to these waters, the EU pays a contribution, over half of which must be used to develop a fisheries policy in the Seychelles. The Seychelles fisheries sector is heavily dependent on the EU agreement. However, the Seychelles are not taking full advantage of all the agreement’s options, particularly in terms of boarding local crews or observers.

The EU contribution varies and is based on reference catches valued at a flat rate per tonne. If the EU vessel catches exceed the reference tonnage, the EU contribution increases proportionally. However, if the Community vessels land less than the reference catches, the basic contribution is not reduced.

The current protocol grants fishing opportunities for 48 purse seiners and 12 surface longliners. The vessel owners benefiting from the agreement are required to pay the Seychelles authorities a contribution in exchange for a fishing licence. Purse seiners must pay EUR 61 000 per year. The financial contribution of surface longliners consists of a fixed part and a variable part. In the case of longliners with a tonnage in excess of 250 GRT, the fee is EUR 4 200 for 250 tonnes of tuna. If longliners have a tonnage less than 250 GRT, the fee to be paid is EUR 3 150 for 90 tonnes of tuna. In both cases, if the longliner catches exceed the corresponding tonnages, the vessel owners must pay EUR 35 per additional tonne of tuna.

PIRACY IN THE INDIAN OCEAN

Piracy off the coast of Somalia has posed a threat to maritime activities since the start of the civil war at the beginning of the 1990s.

Over time the Somali pirates have extended their area of operations, moving ever further away from the Somali coastline by using mother ships. Their weapons, equipment and methods, economic intelligence resources and bargaining processes are becoming increasingly sophisticated.

11 Policy Department B: Structural and Cohesion Policies

to a reduction in the number of vessels, but has also restricted their activities and pushed the fishing areas further east. However, the pirates have likewise extended their area of operations.

Tuna purse seiners are more vulnerable than merchant vessels because they follow more predictable routes in search of catches, they travel more slowly, their deck height is much lower, making it easier to board, and when their nets are cast, they struggle to carry out evasive manoeuvres. Private or military armed protection teams seem to have been effective in reducing the number of hijacks, but operating costs have increased considerably.

Since August 2009, French purse seiners have carried military personnel for their protection, and since November 2009 it has been permitted to have private armed teams on board.

These pirate attacks are also hindering the proper development of scientific observation programmes and are making it difficult to monitor fishing activities, as the coastguards are having to focus their attention on the pirates. This piracy has also had negative effects on activities in the port of Victoria. The number of vessels handled, volume of fish trans- shipped, catches destined for the IOT cannery and services provided to vessels have all declined. This situation has led to some trans-shipments being moved to Port Louis in Mauritius. Although activities at the port of Victoria have been negatively affected by the piracy, it is also true that this has taken competing ports out of circulation, by, for example, limiting processing activity at the port of Mombasa in Kenya.

12 Fisheries in the Seychelles and Fisheries Agreements with the EU

1. GENERAL INFORMATION

1.1. Geography

The Republic of Seychelles is a group of around 115 islands situated in the Indian Ocean approximately 1 500 kilometres to the north-east of Madagascar and 1 600 kilometres to the east of Kenya. It is relatively close to other island nations such as Zanzibar to the west, Mauritius and Réunion (France) to the south, and the Comoros and Mayotte (France) to the south-west. In total, the islands of the Seychelles have a surface area of 455 km² and the coastline extends between 500 and 600 kilometres depending on the source.

Map 1: Geography of the Seychelles

The territorial waters extend for 12 nautical miles, with a contiguous zone of 24 nautical miles. The limit of the Exclusive Economic Zone (EEZ) is set at 200 nautical miles or, where applicable, at the line equidistant with the EEZs of neighbouring countries. The Seychelles EEZ is very extensive due to the islands being widely scattered. It has a surface area of 1 332 031 km². The Seychelles EEZ is bordered by those of Mauritius, Madagascar, the Glorioso Islands (France), Mayotte, the Comoros and Mafia Island (Tanzania). In some cases there are still disputes about the limits of the EEZs of neighbouring countries.

The huge extent of the Seychelles EEZ and its central position in the western Indian Ocean allow access to abundant resources of highly migratory species. This also means that the ports of the Seychelles are in a favourable position to process or trade in the tunas caught

13 Policy Department B: Structural and Cohesion Policies

in the region. However, a large EEZ also creates needs, for example in terms of surveillance and monitoring of the fisheries. A small country with limited resources such as the Seychelles can struggle to meet these needs, which is why cooperation with other countries may be necessary.

Map 2: Seychelles Exclusive Economic Zone

Source: SFA

The limit of the continental shelf is set at 200 nautical miles. In comparison with the EEZ, the continental shelf is very small, as it only has a surface area of 10 334 km². It is most extensive around the granitic islands. In this area, and particularly around the island of Mahé, the seabed is flat and sandy. To the west of the granitic islands is a strip of

14 Fisheries in the Seychelles and Fisheries Agreements with the EU

continental shelf that extends to the south, along the Amirante archipelago to the Farquhar Islands.

Both Mauritius and the Seychelles claim the Chagos Islands. This archipelago consisting of 65 tropical islands is situated in the Indian Ocean, 500 kilometres to the south of the Maldives, between Africa and Indonesia. The Chagos Islands are currently administered as a colony by the United Kingdom and are referred to as a British Indian Ocean Territory (BIOT). The Chagos archipelago consists of five island groups: Peros Banhos, the Solomon Islands, the Eagle Islands, the Egmont Islands and Tres Hermanos. The total surface area of these islands is 63 km². The largest and most southerly, Diego García, has an area of 44 km² and occupies a strategic position in the centre of the Indian Ocean. It is occupied by a military base that is jointly used by the United Kingdom and the United States of America.

Table 1: Island groups in the Seychelles Group Islands Granitic Mahé, Praslin, Silhouette, La Digue, Curieuse, Félicité, Frégate, St. Anne, North, Cerf, islands. Marianne, Grand Sœur, Thérèse, Aride, Conception, Petite Sœur, Cousin, Cousine, Long, 42 islands Récif, Round (Praslin), Anonyme, Mamelles, Moyenne, Ile aux Vaches Marines, L'Islette, Beacon (Ile Sèche), Cachée, Cocos, Round (Mahé), L'Ilot Frégate, Booby, Chauve Souris (Mahé), Chauve Souris (Praslin), Ile La Fouche, Hodoul, L'Ilot, Rat, Souris, St. Pierre (Praslin), Zavé and Harrison Rocks (Grand Rocher). Mixed islands: To the north of the granitic islands: Denis and Bird sand, coral To the south of the granitic islands: Coëtivy and Platte and granite. 4 islands Coral islands. Desroches, Cahée, Alphonse, D'Arros, Marie Louise, Desnoeufs, Rémire, St. François, Amirante Boudeuse, Etoile and Bijoutier. group. Poivre Atoll 29 islands 3 islands: Poivre, Florentin and South Island St. Joseph Atoll 14 islands: St. Joseph Ile aux Fouquets, Ressource, Petit Carcassaye, Grand Carcassaye, Benjamin, Bancs Ferrari, Chiens, Pélicans, Vars, Ile Paul, Banc de Sable, Banc aux Cocos and Ile aux Poules African Banks 2 islands: African Banks and South Island Coral islands. St Pierre Farquhar Farquhar Atoll group. 10 islands: Bancs de Sable, Déposés, Ile aux Goëlettes, Lapins, Ile du Milieu, North 13 islands Manaha, South Manaha, Middle Manaha, North Island and South Island Providence Atoll 2 islands: Providence and Bancs Providence Coral islands. Assumption and Astove Aldabra Aldabra Atoll group. 46 islands: Grande Terre, Picard, Polymnie, Malabar, Ile Michel, Ile Esprit, Ile aux 67 islands Moustiques, Ilot Parc, Ilot Emile, Ilot Yangue, Ilot Magnan, Ile Lanier, Champignon des Os, Euphrate, Grand Mentor, Grand Ilot, Gros Ilot Gionnet, Gros Ilot Sésame, Heron Rock, Hide Island, Ile aux Aigrettes, Ile aux Cèdres, Iles Chalands, Ile Fangame, Ile Héron, Ile Michel, Ile Squacco, Ile Sylvestre, Ile Verte, Ilot Déder, Ilot du Sud, Ilot du Milieu, Ilot du Nord, Ilot Dubois, Ilot Macoa, Ilot Marquoix, Ilots Niçois, Ilot Salade, Middle Row Island, Noddy Rock, North Row Island, Petit Mentor, Petit Mentor Endans, Petits Ilots, Pink Rock and Table Ronde Cosmoledo Atoll 19 islands: Menai, Ile du Nord (West North), Ile Nord-Est (East North), Ile du Trou, Goëlettes, Grand Polyte, Petit Polyte, Grand Ile (Wizard), Pagode, Ile du Sud-Ouest (South), Ile aux Moustiques, Ile Baleine, Ile aux Chauve-Souris, Ile aux Macaques, Ile aux Rats, Ile du Nord-Ouest, Ile Observation, Ile Sud-Est and Ilot la Croix Source: Constitution of the Republic of Seychelles

15 Policy Department B: Structural and Cohesion Policies

The ‘inner’ or granitic islands form the core of the Seychelles. The other islands are generally small coral atolls, most of which are uninhabited. Only 33 islands are inhabited. The largest island is Mahé, where Victoria, the capital of the Republic of Seychelles, the only airport and the only international port in the Republic are located. The granitic islands have a hilly relief. The highest point, at an altitude of 905 metres, is Morne Seychellois on the island of Mahé. The coastal strip of the granitic islands is narrow. The other islands are coral reefs, which are relatively flat.

The climate is tropical and humid, with temperatures varying little during the year, normally between 24°C and 30°C. The coldest months are July and August, and the hottest months are December to April.

Most of the islands lie outside the cyclone belt, so cyclonic phenomena are not common, although short droughts frequently occur. Trade winds from the south-east regularly blow from May to November. There is a rainy season between November and May, due to the effect of the monsoon winds from the north-west. On Mahé the annual rainfall varies between 2 900 mm in Victoria and 3 600 mm on the mountainsides. There is less rain on the other islands.

1.2. Population

The Seychelles were uninhabited when Arab traders arrived. The current population is descended from those who settled during the colonisation of the islands, plus more recent immigration from India and China. The official languages are French, English and Creole.

In July 2011 the Republic of Seychelles had a population of 89 188. It is the smallest African country in terms of population. Around 80% of the population live on the island of Mahé. Despite this concentration, only around 55% of the population live in urban areas.

The human development index, life expectancy and literacy rates of the Seychelles are all high, as a result of public investment in social protection, health and education. This relatively high level of development has a disadvantage as its hinders access to certain international subsidies and financial aid. As a result, the Seychelles have had to seek financing on the market at high interest rates, which were partly the cause of a serious economic crisis in 2008.

The Seychelles and Mauritius are the only African countries with high human development indexes. However, expenditure on social protection is falling as a result of the restrictive measures adopted by the government to tackle the crisis.

1.3. Political and administrative structure

The Seychelles are divided into 25 administrative districts covering the inner islands. Eight of these districts surround the capital of the Seychelles and are known as Gran Victoria. Another 14 districts form the rural part of the island of Mahé. Praslin has two districts while

16 Fisheries in the Seychelles and Fisheries Agreements with the EU

La Digue has one. Their respective satellite islands are included within these districts. The other outer islands do not form part of any district.

The United Kingdom permanently occupied the Seychelles in 1814, after the Napoleonic Wars. In 1903 they became an independent colony of Mauritius. The Seychelles gained their independence from the United Kingdom in 1976, but remain a member Republic of the Commonwealth of Nations.

The President of the Seychelles is head of state and head of government. He or she is elected by universal suffrage for a term of five years. James Michel Alix has been President since 2004. The previous President, France-Albert René, had held power since the 1977 coup d’état, which occurred one year after independence. Since then, his party has governed under several different names.

The Seychelles parliament has one chamber and is known as the National Assembly. There are 34 members of parliament, 25 of whom are directly elected by popular vote, with the other nine being elected in proportion to the total vote for each party. Their term of office is also five years.

The main political party is the governing People’s Party (Parti Lepep, known as the Seychelles People’s Progressive Front until 2009), which is socialist in orientation and has been in government since independence. Other parties are the Seychelles National Party, which was previously called the United Opposition and is led by Wavel Ramkalawan, and the Democratic Party, whose leaders are James Mancham and Paul Chow.

Prior to independence, the political landscape of the Seychelles was dominated by two figures: France-Albert René on the left and James Mancham on the right. In addition to this ideological difference, another sharp contrast between them was that René was a militant advocate of independence, whereas Mancham wanted to maintain the colonial status. Following independence, James Mancham was appointed President, whilst France-Albert René was appointed Prime Minister. The differences between these two figures resulted in a climate of extreme political instability.

On 5 June 1977 Prime Minister France-Albert René seized power by overthrowing the first President of the Republic, James Mancham. The 1979 Constitution made the country a single-party socialist republic until 1991. Despite several coup attempts sponsored from abroad, René remained President until 14 April 2004. He was succeeded by the current President, James Alix Michel, who was re-elected in 2006 and 2011.

In the National Assembly, the People’s Party has 23 seats, whilst the Seychelles National Party has 11. In the May 2011 presidential elections, the votes were distributed as follows: James Alix Michel (People’s Party) 55.5%, Wavel Ramkalawan (Seychelles National Party) 41.4%, Philippe Boullé 1.7% and Ralph Volcère 1.5%.

The Republic of Seychelles is a member of the Indian Ocean Commission, Francofonía, the Commonwealth of Nations, the Southern African Development Community and the Common Market for Eastern and Southern Africa (COMESA).

The Indian Ocean Commission (IOC) is an intergovernmental organisation whose members are the Comoros, Madagascar, Mauritius, France (through Réunion) and the Seychelles. The Maldives have observer status. Its objectives are:  diplomatic cooperation;  trade and economic cooperation;

17 Policy Department B: Structural and Cohesion Policies

 cooperation in agriculture, maritime fisheries and conservation of natural resources and ecosystems;  cooperation in the cultural, scientific, technical and legal fields. Other objectives include increasing trade, promoting tourism and creating links by preserving cultural traditions.

Francofonía is an international organisation with 49 full members. There are another four associate members and 10 observers.

The Commonwealth of Nations is an organisation consisting of 54 countries which, with the exception of Mozambique and Rwanda, are former colonies of the United Kingdom. Its main objective is political and economic cooperation. Since 1950 being a member does not imply any submission to the British crown.

The Southern African Development Community (SADC) has 15 members. Its mission is to promote sustainable and equitable economic growth and socioeconomic development through efficient productive systems, deeper cooperation and integration, good governance, and durable peace and security.

The Common Market for Eastern and Southern Africa (COMESA) is a free trade area with 19 Member States, which extends from Libya to Zimbabwe. COMESA was created in December 1994 to replace a Preferential Trade Area that had existed since 1981. COMESA is one of the pillars of the African Economic Community. In 2008 it agreed to extend the free trade area to the members of another two African trade blocs: the East Africa Community (EAC) and the Southern African Development Community (SADC).

1.4. Economy

Until the late 1960s, cinnamon, vanilla and copra were the main export products. Around 33% of the active population worked on the plantations and another 20% in public administration. In 1971 the Seychelles International Airport opened, and tourism started to develop. As those working in tourism were better paid, agriculture declined due to a shortage of labour, and tourism became the main economic activity of the Seychelles.

Since independence in 1976, the GDP per capita has multiplied sevenfold. The engine of growth has been the tourism sector, which employs around 30% of the active population. In the 1980s the economy associated with fishing activities began to develop, with the improvement of facilities at the port of Victoria due to the fisheries agreements concluded with the EU and Japan. In addition, fish processing developed in the 1990s, which has increased the amount of tuna landed. The contribution to GDP of the Seychelles-owned and registered fishing fleet is very limited at less than 1.2%. However, fishing and its related activities are one of the key sectors of the Seychelles economy. Their contribution to GDP (30%) and foreign exchange already exceed that of tourism. Exports of fishery products account for over 90% of all exports, with the main contribution being made by processed fishery products and tuna landed or trans-shipped in Victoria.

18 Fisheries in the Seychelles and Fisheries Agreements with the EU

The fisheries sector has a significant multiplier effect, as it supports employment throughout the processing and marketing chain and in other ancillary activities associated with fishing. However, fishing does not play an important role in maintaining local communities as most of the fishermen are based in the capital, Victoria.

The government has encouraged foreign investment with a view to modernising the tourism sector and other activities in the service sector. These incentives have led to substantial investments in property and tourism projects. Despite its growth, the tourism sector has proved to be vulnerable. For example, between 1991 and 1992 the Gulf War led to a significant drop in tourism. For that reason, and to diversify the economy, the government has adopted measures to reduce the dependence on tourism and to promote the development of agriculture, fishing and other industrial sectors.

As a result, tourism and fishing are currently the two pillars of the economy. These two sectors are closely linked with the quality of the natural and physical environment. They are also sensitive to the adverse effects of climate change and human activities, particularly urbanisation. The economic activity associated with fishing is also vulnerable due to its high dependence on tuna and the EU market. The erosion of preferential access for Seychelles canned tuna to the European market may have serious and adverse consequences for the Seychelles economy. For example, the derogation from rules of origin granted to fishery products from Papua New Guinea (PNG) could pose a serious risk, given the development of the canning sector in PNG, its lower production costs and the ease of access for catches made by any fleet.

The main export products are canned tuna and, to a lesser extent, frozen fish, copra, cinnamon and vanilla. Canned tuna is exported to the United Kingdom, France and Italy, and frozen tuna caught by Seychelles-registered freezer seiners is exported to Spain.

As a whole, the service sector accounts for 74% of jobs, industry for 23%, and agriculture only 3%. Fishing-related activities employ 17% of the active population, with over 4 600 direct jobs in the Seychelles and a further 1 000 indirect jobs.

More recently, the offshore financial sector has been developed through the establishment of the Seychelles International Business Authority (SIBA) and the passing of various laws such as the International Corporate Service Providers Act, the International Business Companies Act, the Securities Act and the Mutual Funds and Hedge Fund Act, among others.

The currency of the Seychelles is the rupee, which is divided into 100 cents. In the Seychelles Creole, it is referred to as the roupi. The international code is SCR, but the abbreviations Sr and SRe are commonly used.

From 1999 onwards, the financing of huge investment projects, debt-related limitations and reduced access to external financing led to a growing macroeconomic imbalance, which ultimately caused a slowdown in economic activity. The government adopted measures to mitigate these adverse circumstances, which led to an overvaluation of the rupee, in turn increasing the already high cost of living. At the time, the tourism sector narrowly avoided disaster by opting to lower prices in order to keep attracting mid- and high-range tourism.

In 2003 the government introduced a series of measures to improve fiscal discipline, reduce debt and create a more favourable environment for investment and increased trade. It tried to contain the public deficit by reducing social expenditure and privatising public corporations, mainly in insurance, banking, telecommunications and the import of staple

19 Policy Department B: Structural and Cohesion Policies

goods. However, the State still retains a presence in economic activity through public corporations active in the distribution of oil-derived products and holdings in other companies, notably Indian Ocean Tuna (IOT), which is the country’s main employer and produces the bulk of its exports.

Graph 1: Seychelles rupee exchange rate against the euro and US dollar

Source: http://www.forexticket.es

In 2006 a devaluation of the rupee was authorised, and parity with the dollar fell 10%. Despite the devaluation and efforts to diversify the economy, in 2008 this was affected by the rise in raw material prices, a currency shortage, high inflation, a lack of financing and global recession. Also in 2008, the economy was affected by the slowdown in tourism, which, however, recovered in 2009 and 2010. As a result, GDP fell by 1%. Tuna landings, trans-shipments, canning and exports also fell as a result of unpredictable tuna movements and the impact of Somali-based piracy.

In July 2008 the situation worsened, and in September the Seychelles could no longer meet its public debt obligations. External debt reached 170% of GDP, which was the highest in the world. The government was forced to take steps to control the convertibility of the rupee, reduce external debt and stimulate the economy.

In December 2009, in response to changes made in the economic, monetary and fiscal policies, the International Monetary Fund (IMF) granted the Seychelles a three-year extension on its debt repayments. The World Bank (WB) and African Development Bank (AfDB) also cooperated in this process, although this came at the cost of further extending the restrictive economic measures. As a result, the external debt of the Seychelles has been restructured and is now much less of a burden on its economy. However, certain social protection measures have been weakened, to the detriment of the standard of living of the most disadvantaged sectors of society. The restrictions on public spending have been felt in a large number of areas. It is worth noting that, in the case of maritime research, the budget can only cover wages, and this is after the departure of the most experienced staff. As a result, the continuation of certain lines of research has been compromised.

In September 2011 one euro was equal to 17.3858 rupees and one US dollar to 12.1749 rupees. These levels are helping exports and attracting tourism. However, imports are more expensive, although this situation is changeable given the current context of volatility in certain raw material markets.

20 Fisheries in the Seychelles and Fisheries Agreements with the EU

2. OCEANOGRAPHY

The Indian Ocean is the third largest ocean, covering nearly 20% of the planet’s surface. Its surface area is 73 556 000 km², and its maximum width is 10 000 km between Africa and Australia. It is separated from the Atlantic Ocean by the 20th meridian east (Cape Agulhas), from the Pacific by the 147th meridian east, and from the Antarctic by the 60th parallel south. The most northerly point is at the 30th parallel north in the Persian Gulf.

Several seas form part of the Indian Ocean. These are the Andaman Sea, Arabian Sea, Bay of Bengal, Great Australian Bight, Gulf of Aden, Gulf of Oman, Mozambique Channel, Persian Gulf and Red Sea. Only a few rivers bring freshwater into the Indian Ocean. These are the Zambezi, Shatt-al-Arab, Indus, Ganges, Brahmaputra and Irrawaddy.

The importance of the Indian Ocean as a trade route has frequently made it a source of conflict. The island nations in the Indian Ocean are Madagascar, the Comoros, the Seychelles, the Maldives, Mauritius and Sri Lanka, with Indonesia lying on its eastern edge.

The African, Indo-Australian and Antarctic plates converge in the Indian Ocean. Their points of contact are marked by branches of the mid-ocean ridge, which forms an inverted Y, with the root extending to the south from the edge of the continental shelf close to Bombay in India. The eastern, western and southern basins are themselves divided by mountain ranges, forming smaller basins.

Map 3: Bathymetry of the Indian Ocean

Source: Wikipedia

The continental shelves are narrow, with an average width of around 200 km. The west coast of Australia forms an exception, as the width of its continental shelf exceeds 1 000 km. The average depth of the ocean is 4 200 m. Its deepest point, which is 8 047 m below sea level, is in the Diamantina Fracture Zone.

21 Policy Department B: Structural and Cohesion Policies

The climate to the north of the Indian Ocean is dominated by a system of monsoon winds. Strong winds blow from the north-east from October to April, but from May to October southerly and westerly winds predominate. Violent monsoons rise up in the Arabian Sea, which bring heavy rain to the Indian subcontinent. In the southern hemisphere, the winds are generally lighter, but summer storms around Mauritius can be severe. When the monsoons change, they can create cyclones along the coasts of the Arabian Sea and Bay of Bengal.

The ocean currents are controlled by the monsoons. There are two dominant currents, one in the northern hemisphere which flows clockwise, and the other in the southern hemisphere which flows anticlockwise. During the winter monsoons, the northern currents change direction.

The deep water flow is determined by the flows in the Atlantic Ocean, Red Sea and Antarctic currents. To the north of the 20th southern parallel, the minimum surface temperature is 22°C, which can exceed 28°C in the western part. To the south of the 40th southern parallel, the temperature drops off rapidly. Icebergs can be found throughout the year in the vicinity of the 65th southern parallel, but can reach as far north as the 45th southern parallel. The surface salinity of the water ranges from 32 to 37 parts per thousand, with the highest readings being found in the Arabian Sea and in a strip running between southern Africa and south-west Australia.

Graph 2: Productivity of Seychelles waters

600

500

400

300

200 mgC · m-2 · day -1 mgC · m-2 · day 100

0 Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic

Source: Sea Around Us (www.seaaroundus.org). Own graph.

Plankton productivity in the Indian Ocean is low, due to high temperatures. There are exceptions along the northern edges and at some other isolated points. As a result, marine life is relatively scarce. Fishing is limited to subsistence levels, apart from highly migratory species whose variable presence depends, among other factors, on the abundance of small pelagic species, which are their prey. The productivity of the western Indian Ocean waters is also generally low, although there is a period between July and October when productivity is higher. The largest productivity increases and concentrations occur to the south of the granitic islands.

22 Fisheries in the Seychelles and Fisheries Agreements with the EU

3. FISHERY RESOURCES AND THEIR EXPLOITATION

KEY FINDINGS

 Commercial fishing in the Indian Ocean is focused on a small number of highly migratory species, mainly tunas.  In Seychelles waters there are Asian vessels (from Taiwan, Japan, South Korea, the Philippines and China), vessels that are foreign owned but Seychelles-registered, vessels from the EU, and vessels that fly flags of convenience. In general they use longlines and purse seines.  The fisheries sector in Seychelles waters consists of the following: the small-scale fleet, which uses small motorised vessels that fish for demersal and semi-pelagic species in the local area; the semi-industrial fleet, which uses longliners that are between 14 and 22 metres in length and that catch large pelagic species (mainly tuna and swordfish); and the industrial fleet, which uses large purse seiners and longliners that are generally foreign owned and concentrate on fishing for tunas (skipjack tuna, yellowfin tuna and bigeye tuna).  Currently, 69% of the catch is taken using purse seines, 17% with longlines and 11% using pole-lines.  As highly migratory species, the movements of the tunas tend to vary considerably. As a result, their catch in a given area is always subject to large variations. In addition, Somali pirate attacks have led to a reduction in fishing effort, particularly since 2008.  There is some concern within the IOTC about the purse seining of juvenile yellowfin tuna using Fish Aggregating Devices (FADs).  Bigeye stocks are affected by illegal, unreported and unregulated (IUU) catches.  The IOTC only authorises fishing by Contracting Party vessels that have been declared and registered in a public list. It has also decided to freeze the fishing effort at 2003 levels. In addition, during 2011 and 2012 there is a moratorium off the Somali coast (0°-10° North / 40°-60° East) from 1 February to 1 March for longliners and from 1 November to 1 December for purse seiners.

Fish production in the Seychelles was very limited until the mid-1990s. Between 1995 and 2005 catches increased spectacularly, in response to the growth in tuna catches, particularly skipjack tuna (Katsuwonus pelamis) and yellowfin tuna (Thunnus albacares). At the time of independence, all the catches in Seychelles waters were made by its own fleet. At the beginning of the 1980s, the Seychelles allowed fleets from other countries to access its waters, mainly the Soviet Union fleet. In the mid-1980s, other countries began to fish in Seychelles waters, including Japan, South Korea, France and Spain, although the number of Soviet Union vessels started to decline. Currently, in addition to the Seychelles fleet, the countries with the largest catches are Spain and France, which mainly use purse seines.

Fleets flying around a dozen different flags operate in the western Indian Ocean. There are Asian vessels (from Taiwan, Japan, South Korea, the Philippines and China), vessels that are foreign owned but Seychelles-registered, vessels from EU Member States, and vessels that fly flags of convenience. In general they use longlines and purse seines.

Purse seine fishing in the Indian Ocean focuses on three main species: yellowfin tuna (Thunnus albacares), skipjack tuna (Katsuwonus pelamis) and bigeye tuna (Thunnus

23 Policy Department B: Structural and Cohesion Policies

obesus). Since 2007 the catch has been well below 300 000 tonnes per year, whereas in 2003 it exceeded 400 000 tonnes. Skipjack tuna is the dominant species, accounting for around 50% of the catch, followed by yellowfin tuna (40%) and bigeye tuna (just over 5%), whereas the albacore catch only accounts for 1%. The average catch of longliners exceeds 160 000 tonnes per year. The Asian vessels catch around 75% of the total. The European catch is less than 5% of the total longline catch.

The Indian Ocean Tuna Commission (IOTC) is a regional fisheries organisation with the principal mission of managing the stocks of highly migratory species, essentially tunas, in the Indian Ocean. The stocks of yellowfin tuna, bigeye tuna and swordfish are being fully exploited. However, it is considered that the skipjack tuna stocks are being underexploited.

The fisheries sector in Seychelles waters consists of three main segments:  the small-scale fleet, which uses small motorised vessels that fish for demersal and semi-pelagic species in the local area;  the semi-industrial fleet, which uses longliners that are between 14 and 22 metres in length and that catch large pelagic species (mainly tuna and swordfish); and  the industrial fleet, which uses large purse seiners and longliners that are generally foreign owned and concentrate on fishing for tunas (skipjack tuna, yellowfin tuna and bigeye tuna).

Most of the production in Seychelles waters involves tuna catches using a purse seine. The tuna catch in the south-west Indian Ocean is stable at around 300 000 tonnes, although between 2004 and 2006 the catch was exceptionally high. Between 15% and 25% of the tuna catch in the south-west Indian Ocean is made in the Seychelles Exclusive Economic Zone.

24 Fisheries in the Seychelles and Fisheries Agreements with the EU

Graph 3: Total catch in Seychelles waters

120,000

100,000

80,000

Large pelagic t 60,000 Total

40,000

20,000

0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Source: FAO. Own graph

In 2006 and 2007 production fell as a result of a steep drop in the yellowfin tuna catch, following abnormally high catches in 2004 and 2005. Although the skipjack tuna catch remained steady in 2006, it fell in 2007. However, on average, it remains at a higher level than the yellowfin tuna catch. The greater stability in the skipjack tuna catch is due to the fact that most of the catch is made using Fish Aggregating Devices (FADs).

However, the bigeye tuna (Thunnus obesus) catch has followed an upwards trend, although to a much lesser extent than the increase in the yellowfin tuna or skipjack tuna catches. Although the bigeye tuna catch also fell in 2006, on average it remains stable at around 10 000 tonnes. On occasions the purse seiners catch albacore (Thunnus alalunga), which normally lives in warmer waters.

25 Policy Department B: Structural and Cohesion Policies

Graph 4: Catch by species. 3-year moving averages

50,000

Skipjack tuna 45,000

40,000 Yellowfin tuna

35,000 Bigeye tuna

30,000 Swordfish t 25,000

Albacore 20,000

15,000 Other large pelagic

10,000 Other fish

5,000 Other aquatic 0 animals 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Source: FAO. Own graph

Use of the various types of fishing gear has changed considerably. Currently, 69% of the catch is taken using purse seines, 17% with longlines and 11% using pole-lines.

Purse seines were first used to catch tunas in the Indian Ocean on an exploratory basis in the mid-1980s, by fleets from EU Member States and Japan. Since then, the use of purse seines has constantly increased, and this is the main type of gear used by EU vessels. The purse seiners operate under the Spanish, French or Seychelles flags. The only Italian purse seiner switched to flying the French flag in order to obtain protection from the pirates.

26 Fisheries in the Seychelles and Fisheries Agreements with the EU

Map 4: Purse seine tuna catch in the Indian Ocean

Source: IOTC

In general, the purse seiners fish between the east coast of Africa and the 70th eastern meridian, depending on the tuna migrations. Most of the purse seine catch is made using Fish Aggregating Devices (FADs). However, these are used to varying degrees by the different fleets. In addition, the various tuna species respond differently to FADs. Whereas skipjack tuna and bigeye tuna are mainly caught using FADs, the yellowfin tuna catch using FADs is much smaller.

There are differences in terms of the species targeted by the various fleets. Whilst the Spanish purse seiners mainly target skipjack tuna, the French purse seiners focus on yellowfin tuna. The fishing strategy of the Spanish purse seiners, which tend to use FADs more, also requires greater use of auxiliary vessels, which have to operate the FADs, deploy echo sounders, check whether there are any fish concentrations and inform the purse seiners when tuna concentrations are found.

The longline catch increased until the mid-1990s when it then fell and subsequently stabilised at around 8 000 tonnes. Vessels flying EU flags have gradually abandoned longline fishing in the area. This is carried out by the Seychelles semi-industrial fleet and by a few vessels flying Asian flags that operate in the area.

27 Policy Department B: Structural and Cohesion Policies

Longlines are used in the Indian Ocean by a variety of fleets, including vessels registered in Asian countries, such as Japan, Taiwan, South Korea, the Philippines and China, and in other countries. Vessels that are Asian or EU owned but that fly the Seychelles flag are also used. There is also another group of longliners flying flags of convenience, such as those of Belize, Honduras, Equatorial Guinea and Panama. Finally, there is a group of vessels flying various flags which do not report statistical data on their catches.

Graph 5: Catch by type of gear. 3-year moving averages

25,000

20,000

Cerco 15,000 Palangre Líneas de caña

t Redes enmalle Caceas Arrastre de fondo 10,000 Otras

5,000

0 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Source: Sea Around Us (www.seaaroundus.org). Own graph Key to Graph 5 Tm = t Cerco = Purse seine Palangre = Longline Líneas de caña = Pole-lines Redes enmalle = Gillnets Caceas = Troll lines Arrastre de fondo = Bottom trawling Otras = Other

Traditionally, the largest longline fleet by far has been the Taiwanese fleet. However, Taiwan has recently introduced a programme to significantly reduce its longline fleet. As a result, there is increasingly less difference between the size of the Taiwanese and Japanese fleets operating in the Indian Ocean. The Chinese fleet is now larger than the South Korean fleet, which has been vastly reduced in the last 30 years.

The characteristics of the longliners vary considerably. This diversity involves both the size of vessels and their catch freezing or storage capacity. In part, this diversity is due to the

28 Fisheries in the Seychelles and Fisheries Agreements with the EU

fact that the longline fleets consist of several generations of vessels with huge age differences.

The main target species of the longliners in the Indian Ocean are yellowfin tuna, albacore, bigeye tuna and, to a lesser extent, southern bluefin tuna (Thunnus maccoyii). However, the EU longliners mainly catch swordfish.

The main fishing areas of the longliners are in the north-west Indian Ocean, the Mozambique Channel and around the 40th southern parallel. The Taiwanese longliners have traditionally operated off the coast of Somalia, from the Horn of Africa to the Seychelles. However, the Japanese longliners tend to be distributed more uniformly throughout the Indian Ocean. The South Korean longliners prefer the area around the Mozambique Channel and off the coasts of Oman and Somalia.

The EU longliner catch only accounts for 5% of all longliner catches in the Indian Ocean. The Spanish longliners operate in the area between 20°-40° South and 40°-110° East and, to a lesser extent, in Seychelles waters. The French longliners generally operate from Réunion and initially limited their activities to the French EEZ. However, they subsequently extended their range to the east of Madagascar. The EU longliner catch is very small.

Handlines are used by the Seychelles small-scale fleet. The use of other fishing gear, such as gillnets and troll lines, was abandoned in the mid-1990s, with bottom trawling being prohibited.

The enclosed map shows the purse seine tuna catch over the first five years of this decade. Currently, the impact of Somali piracy has changed the geographical distribution of the catch. However, the purse seine catch is still a typical activity of the European fleets.

In general, the highest density of catches occurs in Seychelles waters. In quantitative terms, during the first half of this decade, most of the purse seine tuna catch was made in the north-west Seychelles. It is precisely this area that has faced the greatest pressure from Somali piracy. Some of the catch has now moved to the Mozambique Channel and to the east of the Seychelles.

29 Policy Department B: Structural and Cohesion Policies

30 Fisheries in the Seychelles and Fisheries Agreements with the EU

4. SEYCHELLES FISHERIES SECTOR

KEY FINDINGS

 Fishing-related activities form a pillar of the Seychelles economy. Their contribution to GDP and foreign exchange exceed that of tourism. Exports of fishery products account for over 90% of all exports.  The Seychelles Exclusive Economic Zone is at the centre of the south-west Indian Ocean tuna fishing area.  Victoria is the closest point to 90% of the region’s tuna fishing areas, it is less than two days’ sailing from the region’s fishing grounds, and it is outside the area affected by cyclones.  Around 80% of the tuna catch in the south-west Indian Ocean is landed or trans- shipped in the port of Victoria.  The fisheries sector in the Seychelles requires significant investment and has high operating costs in relation to its limited productivity. It is also facing a shortage of workers with adequate professional training and shortcomings in its infrastructure.  There is a large tuna cannery (operated by Indian Ocean Tuna), which is one of the largest canneries in the world and the main employer in the Seychelles. The Seychelles economy is heavily dependent on IOT’s operations, which are in turn highly dependent on the European Union market. Given its relatively high cost, any erosion of the preference for importing Seychelles tuna into the EU could have wide- ranging economic repercussions. This could happen as a result of the tariff concessions granted to certain countries, such as the derogation from rules of origin applicable to Papua New Guinea.  There are only two aquaculture production facilities, one producing black-lip oysters (Pinctada margaritifera) and the other producing maxima clams (Tridacna maxima), both of which are located on Praslin. A shrimp production facility closed in 2008.

The contribution to GDP of the Seychelles-registered fishing fleet is very limited at less than 1.2%. However, the fisheries sector and its related activities are one of the key sectors of the Seychelles economy. Their contribution to GDP and foreign exchange exceed that of tourism. Exports of fishery products account for over 90% of all exports. The main contribution is made by the processing and export of tuna landed or trans-shipped in Victoria.

The fisheries sector has a significant multiplier effect, as it supports employment throughout the processing and marketing chain and in other activities associated with fishing. However, fishing does not play an important role in maintaining local communities as most of the fishermen and related activities are based in the capital, Victoria.

Fishing has played a very important role in the socioeconomic development of the Seychelles, as it accounts for a large part of exports and is a source of foreign exchange, in addition to being a valuable source of animal protein. In the 1980s, the port of Victoria became the main point for landing and trans-shipping tuna in the south-west Indian Ocean. Currently, around 80% of the region’s tuna catch is landed or trans-shipped in Victoria.

The geographical reasons for this prominent role are obvious. The Seychelles Exclusive Economic Zone is at the centre of the south-west Indian Ocean tuna fishing area, which extends from the African coast to the Chagos Islands. As a result, Victoria is the closest

31 Policy Department B: Structural and Cohesion Policies

point to 90% of the region’s tuna fishing areas, as it is less than two days’ sailing from the region’s fishing grounds, and it is also outside the area affected by cyclones, which is situated to the south and encompasses Madagascar, Réunion and Mauritius.

Furthermore, political stability and a long tradition of cooperation with EU vessel owners has allowed certain working methods to develop in terms of fishing-related logistics. This political stability has formed the difference in terms of the development of landings in Antsiranana or the port of Diego Suárez in Madagascar. The services offered to fishermen ensure that operating times are optimised. Costs are also reasonable, given the activities carried out under the free zone arrangements.

As a result, Victoria enjoys an excellent strategic position in terms of fuel efficiency and maximising operating times. The predominance of Victoria has been consolidated by the improvement of port services and facilities since the 1980s, with the help of aid from the European Union and Japan.

Victoria’s advantageous position was further improved in the 1990s when the tuna cannery of Indian Ocean Tuna was developed. At the end of that decade, this business had become the country’s main employer.

4.1. Fishing activity in the Seychelles

Two of the three fleet segments operating in Seychelles waters account for almost all the Seychelles fishing fleet: namely, the small-scale segment and the semi-industrial segment. The industrial segment is foreign owned, although some vessels are registered in the Seychelles.

The small-scale segment of the fleet consists of around 400 vessels, mostly with glass- fibre hulls and less than 6.5 metres in length, although some traditional wooden-hulled canoes still remain. Some of this fleet is equipped with outboard engines. Most of these vessels only fish part-time.

There are also some metal-hulled vessels between 9 and 12 metres in length, and other wooden-hulled vessels between 10 and 13 metres in length. This fleet is based around the three main islands (Mahé, Praslin and La Digue), but most of the catch is made by the Mahé fleet.

The small-scale fleet mainly catches demersal species such as snappers (Lutjanus spp.), green jobfish (Aprion virescens), groupers (Epinephelus spp.) or threadfins (Polynemidae). It also targets semi-pelagic species such as carangids (Carangidae).

With a few variations, the small-scale fleet catch has remained constant over the last 25 years, at between 4 000 and 5 000 tonnes per year. Nearly three-quarters of the small- scale fleet catch is made using handlines.

Another 15% of the small-scale fleet catch is made using pots. In general this involves species associated with shallow coral banks and reefs. This fishing is highly seasonal and occurs when adverse weather conditions force the fishermen to operate in coastal areas or even inside the atolls.

Part of the small-scale fleet uses purse seines when fishing for pelagic species such as Indian mackerel (Rastrelliger spp.) or, to a lesser extent, although with good potential,

32 Fisheries in the Seychelles and Fisheries Agreements with the EU

scads (Decapterus spp.). Crabs such as Ranina ranina are caught in very small numbers using spoon nets.

Fishing for crawfish is seasonal. In principle this is caught from the beginning of November to the end of January. However, the fisheries were closed during 2003 and 2004 and, since then, the authorised period for crawfish fishing has changed depending on the state of the stocks. Crawfish are caught during the night by divers who use underwater lights.

Fishing for sea cucumber has developed rapidly in recent years, due to increased demand and high prices for dried sea cucumbers on Asian markets and also local markets. These are caught by divers. There are 25 licences, and each one allows a maximum of four divers to fish. The most commonly fished species are black teatfish (Holothuria nobilis), white teatfish (Holothuria fuscogilva) and ‘pentard’ (species not yet classified by biologists), which is the species that has seen the largest increase in catches. Other less significant species are prickly redfish (Thelenota ananas) and whitespotted sea cucumber (Actinopyga mauritiana).

Sharks have changed from being a by-catch to a target species. They are caught by around 10 longliners, with catches having increased due to growing demand for shark fins on Asian markets. The Seychelles government has developed an action plan to manage shark stocks.

There is also an important subsector of recreational fishing. This generally occurs in the afternoons and at weekends. In the main handlines are used to catch demersal species, such as groupers, snappers and emperors, but also carangids and, at night-time, barracudas (Sphyraenidae).

The semi-industrial fleet began to develop in the mid-1990s and currently consists of around a dozen longliners between 14 and 22 metres in length, with an average of seven crewmembers. Most of the vessels were constructed abroad, particularly in Sri Lanka, and have modern electronic equipment and monofilament longlines. This fleet concentrates on fishing for swordfish and tuna away from the Mahé Plateau, but without leaving the Seychelles Exclusive Economic Zone. In its 2017 strategy, the government has expressed an interest in developing and encouraging this fleet segment by purchasing new vessels.

Swordfish is the predominant species (60%) caught by the semi-industrial fleet, followed by yellowfin tuna and bigeye tuna. Catches are sold to two local export companies, with the main destination being the European Union, principally France, Italy and the United Kingdom. Catches have fallen in recent years, particularly in 2003, due to the ban on exporting swordfish to the EU because of the high concentration of cadmium in these fish.

The industrial fleet is foreign owned, although some vessels fly the Seychelles flag. There are two distinct categories in this segment: purse seiners and longliners. Those vessels which fly the Seychelles flag but are foreign owned include around 10 purse seiners that are Spanish owned, whereas around 20 longliners have Asian owners. Registering foreign vessels in the Seychelles allows them to supply raw material to the Indian Ocean Tuna cannery and encourages activities at the port of Victoria. In addition, the catches of these vessels could in the future form the historical basis for generating fishing rights, given possible changes to the management of the region’s fishery resources. For foreign owners, the advantages are numerous: they are granted licences outside the agreements and at a lower cost; operating costs are lower; and they are exempt from taxes.

Most of the foreign purse seiners are French and Spanish vessels, which operate under the agreement signed between the Seychelles and the European Union. They focus on the

33 Policy Department B: Structural and Cohesion Policies

tunas which live at the surface, mainly skipjack tuna (Katsuwonus pelamis) and yellowfin tuna (Thunnus albacares). The longliners are under Taiwanese and Japanese ownership and they target those tunas which live further down, such as bigeye tuna (Thunnus obesus), but also yellowfin tuna. In recent years the Asian-registered longliners have considerably reduced their operations.

Approximately 85% of the purse seine catch is landed at the port of Victoria, in order to be trans-shipped to refrigerated vessels and exported, or processed in the Indian Ocean Tuna cannery.

4.2. Prospects for the Seychelles fisheries sector

The Seychelles fisheries sector needs to overcome a series of problems and limitations that are hindering its development. One of these limitations is the significant investment needed and the high operating costs in relation to the limited productivity of fishing activities. This problem affects fisheries sectors in all countries, but, in the case of the Seychelles, it is combined with high interest rates and a high insurance cost. This is particularly relevant for those fleets that need more investment and that, due to operating further off the coast, may be more exposed to the risk of being attacked by Somali pirates.

The Seychelles fisheries sector is also facing a problem in terms of available labour, particularly skilled labour. There is a widespread public perception that jobs in fishing have a low social status, and this perception is having a serious impact on the development of the fisheries sector. In fact, the comparison of incomes in the tourism sector with those in the fisheries sector plays a fundamental role in this perception. This problem is also affecting the boarding of observers on vessels operating under the various fisheries agreements with the EU and third countries. Following recent budget restrictions, maritime research is also suffering from the effects of the labour shortage.

As a result, the lack of workers with adequate professional training is another factor limiting the development of the fisheries sector. Despite efforts having been made by the Maritime Training Centre (MTC), the results have not been satisfactory as, once students complete their training, they seek employment outside the fisheries sector. Only 8% of MTC graduates work in sectors connected with the maritime economy. The shortage of skilled workers is not only affecting small-scale fishing, but also industrial fishing, which is having serious difficulty in meeting the required quota of Seychelles workers among the crews of tuna vessels operating under the agreements.

The small-scale fisheries sector is being affected by an additional problem: the ageing of fishermen. Younger generations are not replacing the older generations, which in the long term threatens the very survival of the small-scale fishing fleet.

Another major problem affecting the fisheries sector is the difficulty in meeting a highly seasonal demand for production factors, in particular bait for longliners. On occasions this can cause serious profitability issues, due to vessels having to wait in port for supplies.

Furthermore, increasing the value of exports and improving returns in the fisheries sector requires increased efficiency in processing and packaging arrangements, quality control and marketing.

34 Fisheries in the Seychelles and Fisheries Agreements with the EU

The likelihood of a significant increase in the demersal catch is moderate, although research and exploratory fishing may reveal the existence of unexploited resources. It seems that there is potential for an unprecedented but careful increase in the exploitation of deepwater demersal species on the slope of the continental shelf and among the small deep-sea banks beyond the Mahé Plateau and the Amirante archipelago.

Most of the fisheries research is conducted by the Seychelles Fishing Authority (SFA). The SFA has a research vessel with a length of 21 metres. Its lines of work include assessing fish stocks, aggregating fish, collecting biological data on those species with the highest commercial value, improving fishing techniques for semi-industrial longliners, and minimising the effects of predatory activity by false killer whales (Pseudorca crassidens). The collection of catch data and the surface sampling of tuna are carried out in collaboration with the Institut pour la Recherche et le Développement (Institute for Research and Development – IRD, France) and the Indian Ocean Tuna Commission (IOTC).

Other recent lines of research have focused on deepwater species (funded by the EU agreements) and those species fished by small vessels for use as bait on longliners or for the production of fishmeal.

The management of certain species could be improved with additional research effort. This is the case with the snapper and grouper, small pelagic species such as the European pilchard, anchovy and Atlantic horse mackerel, or deepwater species such as the scad (Decapterus spp.).

The Seychelles government has developed a strategy for 2017, setting out goals for the main economic sectors. The fisheries goals are to increase economic profitability and production value by increasing the percentage of catch processed on the islands, increasing Seychellois ownership of the processing industry, and encouraging exports. The ultimate goal is to transform the Seychelles from a trans-shipment hub into the main fish processing centre in the Indian Ocean, by encouraging investment and increasing competitiveness.

The government believes that increasing competitiveness is the way to offset the potential erosion of preferential access to the European Union as a result of the outcome of the post- Cotonou EU-ACP (Africa, Caribbean, Pacific) negotiations. In addition, the government wants to reduce its shareholding in the processing industry, while encouraging the inflow of private capital, either from the Seychelles or from abroad.

This plan is based on various different premises. Growth in the industrial fleet segment and in the processing industry will encourage job creation. In addition, the government hopes that a rise in the number of tourists will increase demand for high-value fresh fish. It also hopes to increase the penetration of Seychelles fishery products in the markets of countries such as China, India and other emerging markets in the region. It hopes to meet this demand through the fleet, by encouraging local investment, diversifying the catch, improving fishing methods, and generally increasing fishing capacity. It aims to implement these actions through an integrated fisheries development project.

In order to achieve these goals, the government is proposing to take a series of actions. These include initiating a communication strategy to raise awareness of the fisheries sector, by identifying its representatives. It also aims to improve the image of fishing, by informing people about the career prospects and by improving vocational training.

35 Policy Department B: Structural and Cohesion Policies

4.3. Fisheries management in the Seychelles

The general objectives of the Seychelles government’s fisheries policy are ‘to promote sustainable fisheries development and optimise the benefits of this sector for present and future generations’.

This general policy declaration breaks down into the following specific objectives:  promote marine resources conservation and management to ensure the industry’s long-term viability;  generate maximum employment;  maximise the income from fishing and related activities;  maximise the contribution of the fisheries sector to the current account balance;  establish close links with those sectors associated with the fishing economy;  promote safety at sea;  keep the port of Victoria as a central player in the landing and trans-shipment of tunas in the western Indian Ocean.

A fishing licence is mandatory for all vessels intending to catch fishery resources in Seychelles waters, with the exception of those vessels less than 7 metres in length, which lack mechanical propulsion systems and which do not catch vulnerable resources, such as sea cucumbers. Seychelles-registered vessels that are foreign owned must pay for these licences.

Fishing outside Seychelles waters is prohibited for vessels from the Seychelles. However, the SFA can grant permission to those vessels wanting to fish outside the EEZ, but this authorisation must be indicated on the licence. It can be cancelled if the SFA is unable to fulfil its flag State duties in terms of monitoring.

Fisheries management essentially involves limitations on access to fisheries and on catches. There is also a series of technical measures and temporary closures of certain fisheries. Finally, the closure of certain areas, including protected areas, completes the range of fisheries management instruments.

The main measures to limit access to fisheries are as follows:  The number of licences for foreign purse seiners is limited to around 50.  The number of licences for sea cucumber and crawfish fishing is limited to 25.  Demersal trawling is prohibited.  The use of mother ships is prohibited around the Mahé Plateau and Amirante archipelago. These are only authorised in some deep-sea fishing grounds close to the southern islands, which means that the use of mother ships is actually economically unviable.  Shark fishing with nets is prohibited, and those sharks landed on vessels more than 24 metres in length must have their fins attached to their body.  Fishing for live fish for export is prohibited.  Underwater spearfishing is prohibited.

The only management plan based on catch limits is the one that has been applied to sea cucumbers since August 2005. There is a quota system of 425 tonnes per year, with a total allowable catch (TAC) set for each of the four species. The TAC is divided equally between the licence-holders using a system of individual and transferrable fishing rights. Any transfer of these fishing rights is dependent on authorisation by the Seychelles Fishing Authority (SFA).

36 Fisheries in the Seychelles and Fisheries Agreements with the EU

There is a series of temporary closures and technical measures, which include the following:  Crawfish fishing is prohibited from the beginning of February to the end of October, and catching females with eggs is prohibited. A minimum shell length has also been set for catches of each species of crawfish.  Night-time fishing for mackerel using gillnets is prohibited.  Pot meshes must have a minimum size of 40 millimetres.

The area restrictions include the following:  Marine Parks have been established, mainly around the granitic islands, where all fishing activity is prohibited.  Protected areas have been established around the reefs of the three main granitic islands, where fishing with nets is prohibited.  Restricted areas have been established for foreign fishing vessels, with fishing activity being prohibited less than 3 kilometres from the 200-metre isobath.

Table 2: Protected Areas

Total surface Marine Name of the Date of IUCN Type area surface area area establishment category (km²) (km²)

African Banks Protected Area 1987 0.03 Ib

Aldabra Special Reserve 1981 350.00 142.00 Ia

Aldabra Atoll World Heritage Site 1982 350.00 142.00 Ia

Aride Island Special Reserve 1975 0.70 Not defined Ia

Baie Ternay National Marine Park 1979 0.87 0.86 II

Cousin Island Special Reserve 1975 0.02 0.02 Ia

Curieuse National Marine Park 1979 15.78 12.84 II

Ile Cocos, Ile National Marine Park 1997 1 705.00 1 665.00 Not La Fouche, Ilot defined Platte

Port Launay National Marine Park 1979 1 579.00 1 543.00 II

Silhouette National Marine Park 1987 30.45 II

Ste. Anne National Marine Park 1973 13.85 9.96 II

Source: IUCN. Own table

The protected areas of the Seychelles have a total surface area of 4 046 km². Most of the protected areas are around the granitic islands. These islands also have the largest protected areas (Ile Cocos, Ile La Fouche, Ilot Platte and Port Launay). The African Banks area is in the Amirante archipelago. The Aldabra Atoll, which is the largest coral atoll in the world and which has been listed as a World Heritage Site, is much further south, in the Aldabra archipelago, close to Madagascan waters.

37 Policy Department B: Structural and Cohesion Policies

Map 5: Protected areas in the Seychelles

Source: Own map

38 Fisheries in the Seychelles and Fisheries Agreements with the EU

Certain financial incentives are available for fishing in the Seychelles. The Development Bank of the Seychelles (DBS) grants soft loans, for a maximum of 50 000 rupees, to fishermen so that they can purchase vessels and engines. Since 1995 these interest-free loans have been granted to fishermen through the Youth Enterprise Scheme (YES).

Fishermen with a licence are entitled to a fuel subsidy through a fuel voucher system. Seychelles enterprises involved in semi-industrial tuna and swordfish fishing benefit from a tax exemption scheme on fuel and on the import of fishing gear or bait. This scheme stems from the former Investment Promotion Act (IPA), which in 2005 became the Agriculture and Fisheries (Incentives) Act. In addition to the exemptions indicated above, this Act provides for an exemption from business tax for owners of vessels making profits of less than 240 000 rupees, and for a tax rate of 15% for those exceeding this amount.

The institutional framework of the fisheries sector is determined by the Ministry of the Environment and Natural Resources, which establishes the general lines of fisheries policy. The Seychelles Fishing Authority (SFA) is the executive body. It is the sole body responsible for management, planning, development, scientific research and training. It also has powers in terms of enforcement, such as surveillance duties in collaboration with the Coastguard, and catch monitoring. The SFA is arranged into four departments. Its two most important functions are, on the one hand, research and development and, on the other hand, fisheries management. With regard to fisheries research, the SFA has developed collaborations with other research institutes, such as the Institut pour la Recherche et le Développement (Institute for Research and Development – IRD, France), the Instituto Español de Oceanografía (Spanish Oceanographic Institute – IEO, Spain) and the Institut Français de Recherche pour l'Exploitation de la Mer (French Oceanographic Institute – IFREMER, France). For the purpose of communicating with the authorities, the fisheries sector is generally represented by the Fishing Boat Owner’s Association (FBOA), although there are other organisations which want to become involved in the public sphere.

The general legal framework of the fisheries sector consists of the following:  Maritime Zone Act (1977): This proclaims the Seychelles to be a sovereign State and establishes and defines the Seychelles Exclusive Economic Zone, baselines, continental shelf, territorial waters, historical waters, etc. It was repealed and replaced in 1999 by the Maritime Zone Act.  Seychelles Fishing Authority (Establishment) Act (1984): Article 5 defines the functions of the SFA:  Promote, organise and develop the fishing industry and fishery resources in the Seychelles.  Participate in formulating the development policy for fishing and fishery resources.  Represent the Republic of Seychelles in negotiations, meetings, seminars and discussions on fishing or related industries, both nationally and internationally.  Determine the training needs of fishing vessel crews and fishing industries.  Fisheries Act (1987): This lays down the rules on fishing by Seychelles-registered or foreign-flagged vessels. It establishes the main methods of fisheries management, procedures for granting fishing licences and fines for offences. It was amended by the Fisheries Amendment Acts of 1997 and 2001.  Licences (Fisheries) Regulations (1987): This defines the various categories and conditions of fishing licences and the fees applicable to Seychelles-registered or foreign-flagged vessels.

39 Policy Department B: Structural and Cohesion Policies

The Indian Ocean Tuna Commission (IOTC) plays a central role in managing the most economically important species in Seychelles waters. The IOTC has been operating since 1997 and is based in Mahé. It is an intergovernmental organisation with the power to administer stocks of 16 species of tuna and other highly migratory species in the Indian Ocean and adjacent areas. Its aims are to promote cooperation between its members in order to ensure, through appropriate management, the optimum conservation and use of resources, and the sustainable development of their exploitation.

Map 6: Area covered by the Indian Ocean Tuna Commission (IOTC)

Source: IOTC

4.4. Fish processing industry

There is a large cannery (operated by Indian Ocean Tuna), which has a capacity of 350 tonnes of tuna per day and which mainly supplies the export market. Indian Ocean Tuna is currently the world’s largest canning company after Starkist Samoa. This second place may change with the rapid development of the canning industry in Papua New Guinea. In any event, it is still the largest fish processing factory in the Indian Ocean.

The Indian Ocean Tuna Ltd (IOT) factory was opened in 1987 in the fishing port of Victoria, under the name ‘Conserverie de l'Océan Indien’. Initially the Seychelles government was the largest shareholder (70%). The remaining 30% belonged to two French companies, Pêcheurs de France and Armement Coopératif Finistérien (ACF), which operated purse seiners in Seychelles waters.

Conserverie de l'Océan Indien was a leading economic player right from the start, both due to the jobs created and the volume of its exports. Conserverie de l'Océan Indien initially employed 300 people and had a production capacity of 50 tonnes per day, equivalent to 15 000 tonnes per year. The production capacity has increased to 350 tonnes per day and the cannery directly employs 2 400 people, some 1 300 of whom are Seychellois citizens. With this capacity, IOT can process around 30% of the catch passing through Victoria.

40 Fisheries in the Seychelles and Fisheries Agreements with the EU

IOT’s operations have a regulating effect on the market, as they absorb part of those catches landed, particularly skipjack tuna, which are less in demand for direct consumption or for the production of high added value products by European industry. However, it is not perceived as an important market outlet, either for Seychelles vessels or for foreign fleets, whether European or Asian.

IOT has the only frozen product storage facilities in the Seychelles, the capacity of which allows for 25 days of production. IOT also has a fishmeal production factory, which uses the cannery’s by-products and certain by-catches of the fleet. There is also a company called Ocean Products Seychelles, which is owned by IOT and which extracts oil from the tuna heads. The cans are made by a company called Impress, which has 40 employees and which is located close to IOT and works exclusively with it. In total, it is estimated that IOT generates around 300 indirect jobs, in addition to the 2 400 direct jobs.

However, IOT does not contribute through taxes or social security contributions as it is covered by the free zone arrangements. Despite that, in addition to helping to maintain an industrial fabric, it also generates container traffic, putting the port of Victoria on the map of trade routes. Without this traffic, the costs of the other activities in the Seychelles economy would increase considerably.

IOT is currently the heaviest consumer of electricity and water in the Seychelles. It has helped to ensure that the port of Victoria is a hub of global importance in the tuna trade. In order to reduce production costs, which are higher than in other countries in the region, IOT has chosen to improve the efficiency of its processes by investing in equipment. The huge labour cost is offset by higher productivity, measured in tonnes of tuna processed per person and per year, which is 75% higher than in Mauritius or Ghana. Likewise, although the cost of water is higher, water consumption is half that in other countries.

In 1995 Heinz purchased 60% of Conserverie de l'Océan Indien, which was renamed Indian Ocean Tuna. The Seychelles government has retained a 40% shareholding in IOT. Free access to the European Union market was a decisive factor in Heinz’s investment. In May 2006 Heinz sold its holding in IOT to MW Brands. MW Brands Holding SAS is based in Paris, but on 29 October 2010 it was purchased by Thai Union Frozen Products Public Co. Ltd. It also has production centres in France, Portugal and Ghana.

The Seychelles are heavily dependent on the European market for exports of canned tuna. The main importers are the United Kingdom and France, followed by Italy and Germany. Most of the products are exported to the EU under the brand names of John West (to the United Kingdom), Petit Navire (to France) and Mareblu (to Italy). Although the Seychelles share of the EU market is fairly small compared to the canned tuna trade as a whole, it is the EU’s main supplier among the ACP countries. Since 2006 canned tuna exports from the Seychelles to the EU have fallen. This can be attributed to the reduced tuna catch, which is due to tuna movements, the impact of Somali piracy and the share of the EU market captured by canned tuna from third countries such as Papua New Guinea (PNG).

As a result, the Seychelles economy is heavily dependent on IOT’s operations, which are in turn highly dependent on the European Union market. Given its relatively high cost, any erosion of the preference for importing Seychelles tuna into the EU could have wide- ranging economic repercussions. This could happen as a result of the tariff concessions granted to certain countries, such as the derogation from rules of origin applicable to Papua New Guinea.

41 Policy Department B: Structural and Cohesion Policies

The derogation from rules of origin granted to fishery products from Papua New Guinea (PNG) could pose a serious risk, given the development of the canning sector in PNG, its lower production costs and the ease of access for catches made by any fleet. At the moment there has been a fall in IOT’s profits. The potential impact on the Seychelles economy will depend on whether the derogation from rules of origin for Papua New Guinea is maintained and whether the canning industry in that country develops.

SAPMER, a French tuna fishing company, has set up, in Port Louis in Mauritius, a unit for processing tuna destined for the sashimi market. Originally this plant was to have been located in Victoria, but difficulties due to the impact of Somali piracy meant that a change of location was recommended.

There are also other processing activities, such as the smoking of sailfish, which is mainly destined for the hotel market. At certain times of the season, some vessels from the southern island groups, which make longer fishing trips, salt their catch and sell it on the main islands. Finally, due to the high price of their products, it is worth mentioning the drying of sea cucumbers and shark fins for export to the Far East markets.

4.5. Fish marketing and distribution

The port of Victoria is managed by the Seychelles Port Authority (SPA) and has a commercial port and a fishing port, which in turn has one part for purse seiners and another part for longliners. At the port there are also businesses that provide services and supplies to the vessels. However, there are no businesses offering frozen product storage services, which is one of the reasons why the Asian longliners do not dock in Victoria.

There are six ice plants on Mahé, which produce 35 to 40 tonnes of ice per day. There is also an ice plant on Praslin, which produces 3 tonnes per day. Due to the increased catches and operational peaks of the semi-industrial longliners, there are repeated shortages of ice, which the SFA is trying to solve. The tsunami caused a temporary interruption in ice production, although the effects of this were mitigated by a reduction in fishing effort due to the damage suffered by part of the fleet. Ice production has subsequently improved, with the construction of ice plants at Anse La Mouche and Anse Royale.

Most of the catch is sold at public markets, with the most important being in Victoria. The fish is generally consumed fresh. It is only when there is excess supply that it is frozen for subsequent distribution, particularly among those consumers who have less purchasing power. On average, around 80% of the industrial purse seine fleet catch is trans-shipped to refrigerated vessels bound for Europe, Mauritius, Puerto Rico and Thailand. The remaining 20% is sent for canning. High-quality species such as groupers (Serranidae) and snappers (Lutjanidae) are generally sold for export and to first processing companies that in turn sell them to hotels or export them by refrigerated transport to Réunion or the European Union.

The two most important companies in the marketing of the Seychelles small-scale fleet catch are Oceana Fisheries Co. Ltd and Sea Harvest. Both these companies are linked to two other companies that own semi-industrial longline fleets, which essentially fish for swordfish. In addition to the catch of this semi-industrial fleet, they market between 15% and 20% of the small-scale fleet catch and part of the Asian longline catch. The small-scale fleet products that are sold are the southern red snapper (Lutjanus purpureas) and, to a lesser extent, carangids, various other snappers, groupers, threadfins and octopus. The

42 Fisheries in the Seychelles and Fisheries Agreements with the EU

products are sold fresh or frozen. One of these companies has two cold stores, with a total capacity of 600 tonnes, whereas the other has a cold store that can hold 40 tonnes. It is hoped that other businesses will set up in the new small-scale port of Providence.

Exports of fish and fishery products account for over 90% of all the Seychelles exports. There are four recognised export companies: Indian Ocean Tuna (IOT), Oceana Fisheries, Sea Harvest and Ocean Product Seychelles (OPS). Their main markets are France, Germany, Japan, Mauritius, Réunion and the United Kingdom. The semi-industrial longline fleet catch (60% swordfish and 40% tuna) is generally exported in refrigerated transport to the EU (France, Italy and the United Kingdom) and, to a lesser extent, to Japan.

4.6. Aquaculture

There are only two aquaculture production facilities. On Praslin there is a production facility for black-lip oysters (Pinctada margaritifera) and another for maxima clams (Tridacna maxima).

Praslin Ocean Farm Ltd began operating in 1993 in L'Amitié, close to Praslin airport. Production began with the maxima clam (Tridacna maxima and Tridacna squamosa) in four land-based seawater recirculation tanks. Its operations are now focused on producing adult oysters for aquaria. The seed oysters are produced in tanks from adults captured from the natural environment. The oysters are exported to Europe and the United States of America when they are between two and four years old (10-15 cm), but good prices cannot be achieved due to a brown colouring. Another problem with this production is that the maxima clam is listed in CITES Appendix II and exports require a certificate, which is difficult to obtain.

In 1995 facilities were constructed for Praslin Ocean Farm Ltd in the National Park between Praslin and Curieuse, covering a total area of 18.7 hectares. This concession covers the harvesting and subsequent breeding of larvae. The pearl seed is implanted by experts from abroad when the oysters reach 10 centimetres. The pearls are exported to Australia, where they are mounted in jewellery, which is then re-exported to Praslin to be sold to tourists.

In 2008 the shrimp production facility on Coëtivy, around 300 kilometres from Mahé, was closed. This facility had been managed by the Seychelles Marketing Board. Production began in 1989 and, following expansion in 1999, the facilities occupied just over half of the island’s surface area. These included 200 production tanks, with a surface area of 80 hectares, and other infrastructures such as an ice plant, packaging plant, energy production plant and staff accommodation. All these facilities were on this small island, which measures just nine kilometres by one kilometre. Production focused on the giant tiger prawn (Penaeus monodon). Most of the juveniles were imported from Madagascar and Mozambique. The production was exported to European and Japanese markets.

The closure of the Coëtivy shrimp production facility in 2008 and the sale of its stocks in 2009 made an impact on the foreign trade balance for those years. This production facility was replaced by a hotel complex, which was to include an integrated development plan that has not yet been produced.

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44 Fisheries in the Seychelles and Fisheries Agreements with the EU

5. SEYCHELLES FISHERIES AGREEMENTS

KEY FINDINGS

 The Seychelles have concluded agreements with the European Union, Japan, South Korea and Taiwan. All these agreements focus on catches of highly migratory species (tunas, swordfish or sailfish) in the open sea.  The agreement concluded with the EU is one of a series of tuna agreements in the Indian Ocean, and has developed from the 1984 Fisheries Agreement to the Fisheries Partnership Agreement signed in 2005.  This agreement allows Community vessels – both purse seiners and, to a much lesser extent, longliners – to fish for tuna in Seychelles waters.  Longliners are currently making very little use of their fishing opportunities. As for purse seiners, although their fishing opportunities were well used until 2007, this has declined considerably and now the main beneficiaries of the agreement are Spanish and French vessels.  In exchange for access to these waters, the EU pays a contribution, over half of which must be used to develop a fisheries policy in the Seychelles.  The Seychelles fisheries sector is heavily dependent on the EU agreement. However, the Seychelles are not taking full advantage of all the agreement’s options, particularly in terms of boarding local crews or observers.  The EU contribution varies and is based on reference catches valued at a flat rate per tonne. If the EU vessel catches exceed the reference tonnage, the EU contribution increases proportionally. However, if the Community vessels land less than the reference catches, the basic contribution is not reduced.  The current protocol grants fishing opportunities for 48 purse seiners and 12 surface longliners.  The vessels benefiting from the agreement are required to pay a contribution in exchange for a fishing licence. Purse seiners must pay EUR 61 000 per year. The financial contribution of surface longliners consists of a fixed part and a variable part. For longliners with a tonnage in excess of 250 GRT, the fee is EUR 4 200 for 250 tonnes of tuna. For longliners with a tonnage less than 250 GRT, the fee is EUR 3 150 for 90 tonnes of tuna. In both cases, if the longliner catches exceed the corresponding tonnages, the vessel owners must pay EUR 35 per additional tonne of tuna.

The Seychelles have concluded fisheries agreements not only with a number of countries, but also with economic entities, companies or associations of fishing companies. The Seychelles legislation is versatile, and applies to both national and foreign vessels. As a result, in many cases fishing licences are granted to fishing operators under the fisheries legislation and not under a specific fisheries agreement.

The agreements only cover catches of highly migratory species (tunas, swordfish or sailfish) in the open sea. The Seychelles have concluded agreements with the European

45 Policy Department B: Structural and Cohesion Policies

Union, Japan, South Korea and Taiwan. The aid received by the Seychelles under the fisheries agreements and the activities of foreign-flagged vessels mean that fishing-related activities form one of the key sectors of the Seychelles economy.

The Republic of Seychelles receives aid from various sources, but the most important are the European Union and Japan. However, the most significant agreement in financial terms is the one concluded with the European Union. Whatever its source, the foreign aid is used to develop the Seychelles fisheries sector and increase the income of its fishermen.

The Southwest Indian Ocean Fisheries Project (SWIOFP) is a regional initiative funded by the World Bank through the Global Environment Facility (GEF). It involves four coastal states (Kenya, Tanzania, Mozambique and South Africa) and five island states in the south- west Indian Ocean, including the Seychelles. Its aim is to promote research and cooperation between the participating countries in order to develop a framework for the sustainable management of the resources exploited in the region.

The agreement concluded with the EU provides funds for scientific research and development of the fisheries sector. Since 1987 Japan has subsidised six projects. These funds have been used to build ice plants, quays and fishing port infrastructure, such as the small-scale fishing port of Providence. The purchase of research and fishing vessels has also been subsidised, together with fishing gear and engines. Japan has also helped to fund those port infrastructures damaged by the tsunami in December 2004. For its part, the FAO advises on fisheries legislation, and in particular has provided technical assistance with drawing up a management plan for inshore fishing.

In addition, away from the fishing sphere, the European Union supports the Seychelles through other actions. Since 1977 the Seychelles have received EUR 25 million from the EU through successive European Development Funds. This aid covers various sectors, including the environment, health and rural development. Since the mid-1990s, attention has been focused on the environment, with the funding of a new solid waste disposal facility on the island of Mahé. In addition to various cooperation projects between the public and private sectors, the Seychelles have received aid for reconstruction following the 2004 tsunami.

ReCoMaP is a regional programme for the sustainable management of the coastal areas of Indian Ocean countries. It is an Indian Ocean Commission initiative, funded by the European Union to the tune of EUR 18 million. The programme was started in August 2006 and is planned to end in 2011. Seven countries in the region benefit from this programme: the Comoros, Madagascar, Mauritius, Kenya, the Seychelles, Somalia and Tanzania.

For the 2008-2013 period, the European Union has allocated a budget of EUR 8.4 million to help the Seychelles. Cooperation has also been restructured, moving from a project- focused approach to general budget support. However, certain environmental projects will absorb a large part of the total amount, with the emphasis being on the water supply network and its sanitary condition.

46 Fisheries in the Seychelles and Fisheries Agreements with the EU

5.1. Fisheries Agreements between the Seychelles and Third Countries

The Seychelles have concluded agreements with various associations and state bodies in Japan. In November 1990 the Seychelles signed an agreement with the Japan Marine Fishery Research Center (JAMARC). This agreement was for three years and focused on studying the viability of purse seine tuna fishing. In addition to this agreement for exploratory fishing, the Seychelles also concluded other agreements for commercial fishing. Following the purse seine exploratory fishing, in June 1995 an agreement was signed with the Japan Far Seas Purse Seine Fishing Association. This agreement was renewed in July 1998 and, after that, was automatically renewed every year. It granted 10 licences for Japanese purse seiners. However, these vessels abandoned the Indian Ocean in 1994.

In February 1988 the Seychelles signed an agreement with the Federation of Japan Tuna Fisheries Co-operative Associations (Japan Tuna) and with the National Federation of Fisheries Co-operative Associations of Japan (ZENYOREN). This agreement, which is renewable every year, authorises a maximum of 80 longliners to fish in Seychelles waters. The licence fees depend on the tuna catches and their value. In addition, a second part to the agreements with Japan provides for a subsidy for the purchase of equipment for the Seychelles Fishing Authority and other actions to help develop the fisheries sector in the Seychelles. The activities of the Japanese longliners peaked in 2007 and have since declined.

The Seychelles have also concluded agreements with a Taiwanese association known as the Taiwan Deep Sea and Tuna Boat Owners & Exporters Association. The first agreement, which was for three years, was signed in April 1997. It has subsequently been renewed several times, with the last renewal being in 2008. This agreement authorises 120 longliners to fish in Seychelles waters, although the Taiwanese longliners are fishing less and less in these waters. This trend has become more pronounced since 2008 due to the impact of Somali piracy.

In November 1998 an agreement was signed with a Chinese company, based in Hong Kong and known as Top Fortune International Ltd. This agreement was renewable annually. The last known agreement signed between the Seychelles and China expired in 2008. This agreement authorised fishing by 35 longliners, but has recently been used by not more than three vessels.

In May 1990 the Republic of Mauritius signed a bilateral cooperation agreement with the Republic of Seychelles, which included reciprocal access to their waters. This agreement entered into force in 1991, with an initial term of two years. It granted licences for five Mauritian-flagged purse seiners and one longliner. The agreement remained in force, even when there were no longer any Mauritian vessels operating in Seychelles waters.

5.2. EU-Seychelles Fisheries Agreements

The Seychelles signed the first Fisheries Agreement with the European Union in 1984, after a series of exploratory fishing voyages by purse seiners were hugely successful. Since 1987 fisheries relations have been governed by a framework agreement and successive protocols. In 2006 the Fisheries Agreement became a Fisheries Partnership Agreement.

47 Policy Department B: Structural and Cohesion Policies

The previous Fisheries Agreement was renewed every three years, but the current Fisheries Partnership Agreement has a term of six years and is automatically renewable. The agreement with the EU has developed from an agreement for financial compensation in return for fishing opportunities to including other cooperative fisheries actions. The current agreement provides for a strengthening of economic, financial, technical and scientific cooperation on fishing to ensure the conservation and sustainable use of fishery resources. However, certain aspects of the agreement, such as the boarding of Seychelles observers and crew, are not always easy to implement. The difficult budgetary situation in the Seychelles has led to some complexity with regard to the part of the financial contribution intended for a specific purpose.

This agreement is one of a series of tuna agreements in the Indian Ocean. These agreements also give access to other highly migratory species, such as the swordfish. All these target species move along seasonal routes through the western Indian Ocean. However, these movements can vary significantly from one year to the next. For this reason, the agreement with the Seychelles should be viewed from a regional perspective, together with other agreements signed with the Comoros, Madagascar and Mozambique. It should also be noted that certain companies have private agreements with Tanzania and Kenya.

This agreement allows Community vessels – both purse seiners and, to a much lesser extent, longliners – to fish for tuna in Seychelles waters. Longliners are making very little use of their fishing opportunities. As for purse seiners, although their fishing opportunities were well used until 2007, this use declined considerably up to the end of the previous protocol in 2011. The agreement’s contribution to employment in the Community fisheries sector has been significant, as also to the supply of raw materials to the European tuna canning industry.

Initially the main beneficiaries of the agreement were vessels from Spain, Portugal, France and Italy. The Portuguese vessels gradually withdrew from Seychelles waters, just like other longliners. For its part, the only Italian purse seiner switched to flying the French flag in 2009 in order to obtain military protection from pirates. As with other agreements, the one concluded between the European Union and the Seychelles has developed from the 1984 Fisheries Agreement to the Fisheries Partnership Agreement signed in 2005.

In exchange for access to Seychelles waters, the EU undertakes to pay the Seychelles a contribution, over half of which must be used to develop and implement a fisheries policy in the Seychelles in order to promote responsible and sustainable fishing in those waters. The fisheries agreement also benefits the Seychelles in terms of generating foreign exchange through the sale of access to resources and producing important socioeconomic benefits for a country that is facing an unfavourable economic situation. The Seychelles fisheries sector is heavily dependent on the EU agreement. However, the Seychelles are not taking full advantage of all the agreement’s options, particularly in terms of boarding local crews or observers. Despite that, the agreement has effectively contributed to the implementation of sustainable fishing practices and has improved the capacity for managing fishery resources and for monitoring fisheries.

Around 230 jobs on board vessels depend on the fisheries agreement. The protocol includes provisions requiring Seychellois nationals to form part of the crew of fishing vessels. However, on average only 30 Seychellois crewmembers are employed. In addition, there are 2 900 jobs in the Seychelles which depend on the provision of services to vessels or

48 Fisheries in the Seychelles and Fisheries Agreements with the EU

which are involved in the processing of fishery products. Furthermore, in Europe there are 760 jobs associated with the vessels operating under this agreement.

The total catch in Seychelles waters represents a substantial part of the total catch made by purse seiners in the Indian Ocean. In particular, nearly one-quarter of the catch is made by Community vessels. However, the catch made by longliners in the Seychelles EEZ is very small compared to the total.

Since 2005 the average use of the agreement by longliners has been 24%, although there have been significant annual variations. In 2006 these variations only applied to Spanish vessels. Since 2005 France has not used any of its five licences. In 2010 Portugal only used one of its five licences, and Spain only used one of its two licences.

However, the agreement is being much more extensively used by purse seiners, at 78%. This use was very high during the first four years of the protocol. It fell to 78% in 2009, and then to 44% in 2010. Under the previous protocol, Spain achieved a level of use of 86%, whereas France only used 67%. The fall in use in 2009 and 2010 was mainly due to the movement of vessels to other fishing grounds in order to escape the activities of Somali pirates.

The catches exceeded the reference tonnage under the original protocol (55 000 tonnes) in 2005, 2006 and 2007. However, the reference tonnage of 63 000 tonnes agreed in the 2007 protocol amendment was not achieved in either 2008 or 2009, and much less so in 2010. This lack of use has increased as a result of the departure of vessels to escape the piracy. The difference from the peak was 18 000 tonnes in 2008 and 40 000 tonnes in 2009.

The Fisheries Partnership Agreement between the European Community and the Seychelles1covered the period between 18 October 2005 and 17 January 2011. However, unless terminated by one of the parties, this agreement is automatically renewable. This was the case in 2011, when it was extended for three years.

Before the end of the last protocol in March 2007,2the main parameters of the agreement – reference tonnage and financial contribution – were revised, after agreement was reached by the Joint Committee. This renegotiation of the protocol was due to the Seychelles questioning the reliability of the catch reports between 2008 and 2010.

During the Joint Committee meeting held on 15 to 16 December 2010, it was decided that, for 2010 and retroactively for 2008 and 2009, purse seiners should pay EUR 61 000 for licence rights. As a result, the payment system based on a reference catch made in the Seychelles Exclusive Economic Zone came to an end.

1 OJ L 290, 20.10.2006. The initial protocol was published on 25 January 2006 (Council Regulation (EC) No 115/2006 of 23 January 2006, OJ L 21, 25.1.2006). 2 Council Regulation (EC) No 480/2008 of 26 May 2008 on the conclusion of the Agreement in the form of an Exchange of Letters on the amendments to the Protocol setting out, for the period from 18 January 2005 to 17 January 2011, the fishing opportunities and the financial contribution provided for by the Agreement between the European Economic Community and the Republic of Seychelles on fishing off Seychelles.

49 Policy Department B: Structural and Cohesion Policies

According to the original protocol and its two amendments, the initial total cost of the agreement was EUR 37 786 800 for the six years of the protocol. With regard to this amount, 25% was to be paid by vessel owners and the remaining 75% was to come from the EU budget. The two protocol amendments changed the share paid by vessel owners. Initially, this was to be 13% of the total amount for the first three years of the protocol and 32% for the last three years. This is particularly important in view of the transition to a flat- rate system. As a result, the amendment introduced in 2010, applying retroactively to 2008 and 2009, has substantially altered the economics of the protocol.

On 12 July 2011 the Council adopted a decision on the signing of the new protocol3. From 18 January 2011 the reference tonnage was reduced to 52 000 tonnes. The annual financial compensation is EUR 5 200 000, of which EUR 2 200 000 is to be used to support the sectoral fisheries policy and maritime policy of the Seychelles. In addition, if the catch exceeds the reference tonnage, EUR 65 must be paid for each additional tonne, up to a maximum of EUR 6 760 000.

The current protocol grants fishing opportunities for 48 purse seiners and 12 surface longliners. For their part, the vessel owners benefiting from the agreement are required to pay the Seychelles authorities a contribution in exchange for a fishing licence. Purse seiners must pay EUR 61 000 per year. The financial contribution of surface longliners consists of a fixed part and a variable part. In the case of longliners with a tonnage in excess of 250 GRT, the fee is EUR 4 200 for 250 tonnes of tuna. If longliners have a tonnage less than 250 GRT, the fee to be paid is EUR 3 150 for 90 tonnes of tuna. In both cases, if the longliner catches exceed the corresponding tonnages, the vessel owners must pay EUR 35 per additional tonne of tuna.

3OJ L 345, 30.12.2010.

50 Fisheries in the Seychelles and Fisheries Agreements with the EU

Table 3: Main elements of the EU-Seychelles agreements Period of Financial Contribution from vessel owners Additional amounts Number of vessels validity compensation4 From ECU 3 000 000 for the period ECU 20/t of tuna. ECU 250 000 for scientific and technical 18 purse seiners. 18/01/1984 of the agreement. - Advance payment of ECU 120 000. programmes. Opportunity for other to Annual minimum payment of types of vessel. 17/01/1987 ECU 300 000 for 6 000 t of tuna. From ECU 2 200 000 per year. ECU 20/t of tuna. ECU 750 000 for scientific and technical 40 purse seiners. 18/01/1987 Minimum of ECU 2 000 000 for - Advance payment of ECU 5 000 per vessel and programmes. Opportunity for other to 40 000 t of tuna. per year for 250 t of tuna. types of vessel. 17/01/1990 From ECU 6 900 000 for the period ECU 20/t of tuna. - ECU 2 700 000 for scientific and technical 40 purse seiners. 18/01/1990 of the agreement for 46 000 t - Advance payment of ECU 10 000 per vessel programmes. Opportunity for other to of tuna. and per year for 500 t of tuna. - ECU 300 000 for grants and participation types of vessel. 17/01/1993 in international meetings. From ECU 6 900 000 for the period ECU 20/t of tuna. - ECU 2 700 000 for scientific and technical 40 purse seiners. 18/01/1993 of the agreement for 46 000 t - Advance payment of ECU 5 000 per purse programmes. Trollers and longliners to of tuna. seiner and per year for 250 t of tuna. - ECU 300 000 for grants and participation not exceeding 17/01/1996 - Advance payment of ECU 500 per longliner in international meetings. 18 metres in length. and per year for 25 t of tuna.

From ECU 6 900 000 for the period ECU 20/t of tuna. - ECU 2 700 000 for scientific and technical 42 purse seiners. 18/01/1996 of the agreement for 46 000 t - Advance payment of ECU 7 500 per purse programmes. 15 longliners not to of tuna. seiner and per year for 375 t of tuna. - ECU 300 000 for grants and participation exceeding 37 metres in 17/01/1999 - Advance payment of ECU 500 per longliner in international meetings. length. and per year for 25 t of tuna.

From EUR 6 900 000 for the period of EUR 25/t of tuna. EUR 3 450 000 shared as follows: 47 purse seiners. 18/01/1999 the agreement for 46 000 t of - Advance payment of EUR 7 500 per purse - EUR 1 950 000 for scientific and technical 32 longliners not to tuna. seiner and per year for 300 t of tuna. programmes. exceeding 37 metres in 17/01/2002 - Advance payment of EUR 1 375 per longliner - ECU 300 000 for grants and participation length. > 150 GRT and per year for 55 t of tuna. in international meetings. 5 - Advance payment of EUR 1 000 per longliner - EUR 450 000 for the installation of VMS . < 150 GRT and per year for 40 t of tuna. - EUR 750 000 for the development of the local longliner fleet.

4 If the catch exceeds the allocated quota, the compensation and costs increase proportionally. If the catch is below the allocated quota, there is no refund. 5 Vessel Monitoring System.

51 Policy Department B: Structural and Cohesion Policies

Period of Financial Contribution from vessel owners Additional amounts Number of vessels validity compensation4 From EUR 2 300 000 per year for EUR 25/t of tuna. EUR 3 480 000 shared as follows: 40 purse seiners. 18/01/2002 46 000 t of tuna. - Advance payment of EUR 10 000 per purse - EUR 1 230 000 for development of local 27 longliners. to seiner and per year for 400 t of tuna. fisheries. 17/01/2005 - Advance payment of EUR 2 000 per longliner - EUR 1 000 000 for VMS. > 150 GRT and per year for 80 t of tuna. - EUR 950 000 for scientific and technical - Advance payment of EUR 1 500 per longliner programmes. < 150 GRT and per year for 60 t of tuna. - ECU 300 000 for grants and participation in international meetings. From EUR 4 125 000 per year for EUR 25/t of tuna. 40 purse seiners. 18/01/2005 55 000 t of tuna. - Advance payment of EUR 15 000 per purse 12 longliners. to EUR 75 per additional tonne. seiner and per year for 600 t of tuna. 17/01/2007 Maximum of EUR 8 250 000. - Advance payment of EUR 3 000 per longliner > 150 GRT and per year for 120 t of tuna. - Advance payment of EUR 2 250 per longliner < 150 GRT and per year for 90 t of tuna.

From EUR 4 095 000 per year for EUR 35/t of tuna. EUR 1 260 000 per year for development 40 purse seiners. 18/01/2007 63 000 t of tuna. - Advance payment of EUR 21 000 per purse of sectoral policy in the Seychelles. 12 longliners. to EUR 65 per additional tonne. seiner and per year for 600 t of tuna. 17/01/2011 Maximum of EUR 10 710 000. - Advance payment of EUR 4 200 per longliner

> 250 GRT and per year for 120 t of tuna.

- Advance payment of EUR 3 150 per longliner < 250 GRT and per year for 90 t of tuna.

From EUR 3 380 000 per year for - EUR 61 000 per purse seiner and per year. EUR 2 200 000 to support the sectoral 48 purse seiners. 18/01/2011 52 000 t of tuna. - Fee of EUR 4 200 per longliner > 250 GRT and fisheries policy and maritime policy of the 12 longliners. to EUR 65 per additional tonne. per year for 120 t of tuna. Seychelles. 17/01/2014 Maximum of EUR 6 760 000. - Fee of EUR 3 150 per longliner < 250 GRT and

per year for 90 t of tuna. EUR 35/additional tonne of tuna for longliners.

52 Fisheries in the Seychelles and Fisheries Agreements with the EU

PIRACY IN THE INDIAN OCEAN

KEY FINDINGS

 Piracy off the coast of Somalia has posed a threat to maritime activities since the start of the civil war at the beginning of the 1990s.  The Somali pirates have extended their area of operations, moving ever further away from the Somali coastline by using mother ships. Their weapons, equipment and methods, economic intelligence resources and bargaining processes are becoming increasingly sophisticated.  This Somali-based piracy is significantly affecting fishing activities in the Indian Ocean, including the Seychelles EEZ. In fact, use of the fisheries agreement with the Seychelles by Community purse seiners has declined considerably since 2009. This piracy has not only led to a reduction in the number of vessels, but has also restricted their activities and pushed the fishing areas further east. However, the pirates have likewise extended their area of operations.  Purse seiners are more vulnerable than merchant vessels because they follow more predictable routes in search of catches, they travel more slowly, their deck height is much lower, making it easier to board, and when their nets are cast, they struggle to carry out evasive manoeuvres. Private or military armed protection teams seem to have been effective in reducing the number of hijacks, but operating costs have increased considerably.  Since August 2009, French purse seiners have carried military personnel for their protection, and since November 2009 it has been permitted to have private armed teams on board.  These pirate attacks are also hindering the proper development of scientific observation programmes and are making it difficult to monitor fishing activities, as the coastguards are having to focus their attention on the pirates.  This piracy has also had negative effects on activities in the port of Victoria. The number of vessels handled, volume of fish trans-shipped, catches destined for the IOT cannery and services provided to vessels have all declined. This situation has led to some trans-shipments being moved to Port Louis in Mauritius. Although activities at the port of Victoria have been negatively affected by the piracy, it is also true that this has taken competing ports out of circulation, by, for example, limiting processing activity at the port of Mombasa in Kenya.  Operation Atalanta is a military operation undertaken by the European Union. It involves 23 EU Member States and another four countries and its aim is to combat piracy in the Horn of Africa. It commenced operations on 8 December 2008 and these are scheduled to continue until December 2012.

Piracy off the coast of Somalia has posed a threat to maritime activities since the start of the civil war at the beginning of the 1990s. In 2004 the level of piracy increased, and several organisations, including the International Maritime Organization and the World Food Programme, expressed their concerns. This piracy began to decline in 2006, after the Union

53 Policy Department B: Structural and Cohesion Policies

of Islamic Courts seized power. However, it re-emerged again after Ethiopia invaded Somalia in December 2006.

Map 7: Somali pirate attacks 2005-2010

Source: Arun Ganesh, National Institute of Design, Bangalore

54 Fisheries in the Seychelles and Fisheries Agreements with the EU

Table 4: Main hijacks of fishing vessels by Somali pirates Vessel Flag Crew Start of End of Position hijack hijack Ching Fong Hwa Taiwan 15 28/4/2007 5/11/2007 168 Mavuno No 1 Tanzania 25 15/5/2007 12/11/2007 1°10′0″N Mavuno No 2 49°0′0″E Grecko 2 Greece 4 20/9/2007 Playa de Bakio Spain 26 20/4/2008 26/4/2008 00°06′14″S 049°08′33″E Tianyu No 8 China 14/11/2008 8/2/2009 Ekawat Nava 5 Kiribati 16 18/11/2008 Sunk Victoria IV Kenya 7 7/1/2009 7/1/2009 Safari Iran 14 16/3/2009 Still held Win Far 161 Taiwan 30 6/4/2009 11/2/2010 Alakrana Spain 36 3/10/2009 17/11/2009 1°32′00″S 054°52′00″E Thai Union Thailand 27 29/10/2009 Still held Yemen 31/10/2009 Still held Avel Vad France 31/10/2009 Repelled Ortube Berria Spain 11/2009 Repelled 230 miles to the south-west of the Seychelles Shahzaib Pakistan 29 6/12/2009 2/1/2010 Jih-Chun Tsai Taiwan 10 30/3/2010 Sunk 68 20/5/2011 Prantalay 11, Thailand 77 18/4/2010 Still held Off the Indian 12, and 14 coast Tai Yuan 227 Taiwan 9 6/5/2010 Still held Feng Guo No Taiwan 18 8/10/2010 Still held 250 miles to the 168 north-west of Madagascar Golden Wave Kenya 43 9/10/2010 Still held Ortube Berria Spain 17/10/2010 Repelled 700 miles off Somalia Elai Alai Spain 3/11/2010 Repelled 200 miles to the west of Mahé Erroxape Spain 11/11/2010 Repelled Vega 5 Mozambique 14 31/12/2010 Still held Felipe Ruano Spain 30 2/3/2011 Repelled 270 miles from the Somali coast Draco Seychelles 33 1/4/2011 Repelled 195 miles from the Tanzanian coast Source: Own table based on various sources

This Somali-based piracy is significantly affecting fishing activities in the Indian Ocean, including the Seychelles EEZ. In fact, use of the fisheries agreement with the Seychelles by Community purse seiners has declined considerably since 2009. This piracy has not only led to a reduction in the number of vessels, but has also restricted their activities and pushed the fishing areas further east. However, the pirates have likewise extended their area of operations.

55 Policy Department B: Structural and Cohesion Policies

These pirate attacks are also having other effects, as they are hindering the proper development of scientific observation programmes and they are making it difficult to monitor fishing activities, as the coastguards are having to focus their attention on the pirates. This piracy has also had negative effects on activities in the port of Victoria. The number of vessels handled, volume of fish trans-shipped, catches destined for the IOT cannery and services provided to vessels have all declined. This situation has led to some trans-shipments being moved to Port Louis in Mauritius. Although activities at the port of Victoria have been negatively affected by the piracy, it is also true that this has taken competing ports out of circulation, by, for example, limiting processing activity at the port of Mombasa in Kenya.

Cargo vessel hijacks are the most common. However, for some time there has also been a large number of fishing vessel hijacks. Fishing vessels are more vulnerable than merchant vessels for a variety of reasons. Firstly, they follow more predictable routes in search of catches, they travel more slowly, and their deck height is much lower, making it easier to board. Secondly, when their nets are cast, they struggle to carry out evasive manoeuvres. Private or military armed protection teams seem to have been effective in reducing the number of hijacks, but operating costs have increased considerably.

Fishing vessels have also repelled a number of attempted hijacks. In terms of fishing vessel hijacks, it is worth noting that, according to the available information, since the end of 2009 none of the fishing vessels seized have been released.

The most significant captures of Community fishing vessels began with the hijack of the ‘Playa de Bakio’ on 20 April 2008, when it was fishing 460 miles off the Somali coast. This freezer tuna seiner, based in the port of Bermeo (Spain), had a crew of 26. On 26 April it was announced that the crew had been rescued and that another group of pirates had tried to seize the vessel again, but had been dissuaded by the presence of a Spanish frigate.

Another freezer tuna seiner, the ‘Alakrana’, also registered in Bermeo, managed to evade an attempted hijack on 3 September 2009, when it was 495 miles from Somalia. However, it was then hijacked on 3 October 2009 with its 31 crew some 413 miles off the coast of southern Somalia, when it was fishing far from the area protected by Operation Atalanta, but within the security zone in international waters. On 17 November 2009, after being held for 47 days, the ‘Alakrana’ was released. In this case also, pirates from another clan tried to recapture the vessel.

In addition, some of the African-flagged vessels that have been seized are operated by European companies. This is the case with the longliner ‘Vega 5’, which is registered in Mozambique but operated by Pescamar, which is owned by the Spanish multinational Pescanova.

Since August 2009, French purse seiners have carried military personnel for their protection. Differences in national legislation in terms of having military personnel on board led the only Italian purse seiner operating in Seychelles waters to re-register in France.

Spanish law was changed on 2 November 2009 to allow security guards to use weapons with a calibre of up to 12.70 mm on Spanish-flagged vessels, provided that these weapons are purchased from manufacturers or distributors based in Spain. However, until very recently the Seychelles only allowed weapons with a maximum calibre of 7.62 mm.

56 Fisheries in the Seychelles and Fisheries Agreements with the EU

However, vessels flying other flags are permitted to have military personnel on board, who can carry weapons with a larger calibre than that authorised on Spanish vessels.

In reality, until 2009 the Somali pirates had barely entered Seychelles waters. However, there have been a number of pirate attacks on fishing vessels trans-shipping or landing their catch in Victoria. There is also a fear in the Seychelles that tourists will identify the word piracy with the Seychelles.

Operation Atalanta is a military operation undertaken by the European Union. It involves 23 EU Member States and another four countries and its aim is to combat piracy in the Horn of Africa. It forms part of a wider Community action in the Horn of Africa to tackle the crisis in Somalia, and is the EU’s first naval operation. It commenced operations on 8 December 2008. The operation was scheduled to last for an initial period of 12 months, until 13 December 2009, but has been extended until December 2012. It has an annual budget of EUR 8 million. It involves 12 vessels, aircraft that carry out sea patrols, and a total of around 2 000 military personnel.

Its mandate is to help:  protect vessels of the World Food Programme (WFP) carrying humanitarian aid to those displaced in Somalia;  protect vulnerable vessels sailing off the coast of Somalia, and deter, prevent and repress acts of piracy and armed robbery off the coast of Somalia;  also monitor fishing activities off the coast of Somalia.

On 10 November 2009 the Seychelles signed an agreement with the European Union on the status of the European Union-led forces in the Republic of Seychelles in the framework of the EU military operation Atalanta6. The Seychelles have also signed a defence cooperation agreement with Belgium and a Memorandum of Understanding with the United Kingdom, which provides for joint military operations, including prosecuting and imprisoning in the Seychelles, where applicable, any alleged pirates captured in its territorial waters. The Seychelles government has asked the EU to extend the Atalanta operation to the islands’ Exclusive Economic Zone (EEZ).

Since Operation Atalanta began, fishing vessels have been asked to adopt all possible protection measures. These include operating in authorised areas, reporting their location and course to the military vessels, sailing at over 12 knots, moving in groups and installing security systems (‘panic rooms’ or ‘fortresses’). However, not all these measures can be taken by fishing vessels.

6OJ L 323, 10.12.2009.

57 Policy Department B: Structural and Cohesion Policies

NOTES

Directorate-General FOR Internal Policies POLICY DEPARTMENT Directorate-General FOR Internal Policies STRUCTURAL AND COHESION POLICIESB

POLICY DEPARTMENT AgricultureAgriculture and Rural and Development Rural Development STRUCTURAL AND COHESION POLICIES B CultureCulture and Education and Education Role

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