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FROM THE PRESIDENT'S DESK China's announcement that it would stop imports from several countries including India, starting June this year, is disappointing. The Indian seafood industry follows the highest quality and hygiene standards at all levels. China is our very important trade partner, and we hope that they realise and recognise the efforts we make, to ensure that the importing countries get our best products. Our list of importers includes many countries in the EU as well as the USA, who insist on the most stringent levels of inspection and quality specifications. The fact that we have consistently been on these countries' list of top exporters is proof of our quality credentials. Considering the fact that China was the largest market for Indian seafood exports last year, with 159,000 tonnes exported in 2011 (accounting for over 20 per cent of total seafood exports), this could be a severe setback. In value terms, exports to the Chinese market accounted for 15 per cent of the country's total export earnings. The Association is optimistic that the collective efforts of Indian exporters across various sectors, as well as the diplomatic initiatives at the government level would turn the situation around, bringing cheers to traders in both the countries. Seafood exporters are reeling under the impact of changes in procedure and documentation outlined by the various regulatory bodies and agencies, from time to time. Consequently, we are unable to compete with our Asian competitors like China, Vietnam, Bangladesh and Sri Lanka, resulting in our products being marginalised in certain markets. The industry is optimistic of working out amicable and mutually beneficial solutions on various fronts. We hope that the Government of India considers our long-standing demand of exemption from Service Tax, on services rendered in India and utilized by exporters. Service tax exemption has been granted for contract labour bills, sales commission and all export related activities. SEAI has the opinion that, since Excise and Customs duties on exported goods are set off by mechanisms such as DEPB and duty drawback, it is essential to bring about such redemption schemes with regard to service tax as well, to make Indian exports internationally competitive. India's seafood exports are likely to reach US$ 4.7 billion by 2014. High value products like shrimp, squid, cuttlefish and crab mainly sustain the growth in exports. It is a fact that many of the species caught in Indian waters have absolutely no demand in the local market and are totally dependent on the international market. Hence, anything adversely affecting the industry will first hit the farmers and fishermen, who are at the lowest end in the chain. 3 International Seafood Industry News WTO PREDICTS TRADE GROWTH TO SLOW IN 2012 World trade expanded in 2011 by 5 percent, a sharp of Independent States (CIS), South- deceleration from the 13.8 percent rise in 2010, and growth Central America, China and four newly will slow further to 3.7 percent in 2012, due to a number of industrialized economies (NIEs), namely shocks, including the European soverign debt crisis, according China's Hong Kong, the Republic of Korea, to a report released on 12th April by the World Trade Singapore and Chinese Taipei. Organization (WTO). The present trade forecast assumes The WTO's projected 3.7 percent growth rate for world global output growth of 2.1 percent in merchandise trade in 2012 -- with 2 percent export growth 2012 at market exchange rates, and there anticipated for developed economies and 5.6 percent for are severe downside risks for growth that developing economies -- is below the long-term average of 6 could have even greater negative percent for 1990 to 2008, and down from the average of 5.5 consequences for trade if they came to percent over the last 20 years including the period of the pass, including a steeper than expected trade collapse. Economists figured out that downside risks downturn in Europe, financial contagion would include deeper recession in the Eurozone and rising related to the sovereign debt crisis, commodity prices. rapidly rising oil prices, and geopolitical risks. The world imports growth also The total dollar value of world merchandise exports dropped sharply in 2011 from the increased by 19 percent to 18.2 trillion U.S. dollars in 2011, previous year, down from 13.7 percent to which is a record, in spite of the fact that was driven in large 4.9 percent, according to the statistics. part by higher primary commodity prices, according to the Fastest growing imports include China report. Commercial services exports also grew 11 percent in and India. 2011 to 4.1 trillion U.S. dollars. "The WTO has so far deterred economic A significant braking of trade expansion had been forecast for nationalism, but the sluggish pace of 2011, but multiple economic setbacks during the year recovery raises concerns that a steady dampened growth beyond expectations and led to a stronger trickle of restrictive trade measures could than anticipated easing in the fourth quarter. gradually undermine the benefits of trade "More than three years have passed since the trade collapse of openness. WTO members should turn 2008-09, but the world economy and trade remain fragile. The their attention to revitalizing the trading further slowing of trade expected in 2012 shows that the system and to ensuring such a scenario downside risks remain high. We are not year out of the wood," does not materialize," Lamy said. WTO Director-General Pascal Lamy said. The report also forcasted the world trade Statistics showed that the rate of world output growth fell to volume for 2013 is expected to recover 2.4 percent in 2011 from 3.8 percent in the previous year, to 5.6 percent, based on assumptions weighed down by the ongoing sovereign debt crisis in Europe, about the longer term trajectory of gross supply chain disruptions from natural disasters in Japan and domestic product (GDP), with exports of Thailand, and turmoil in Arab countries. This pace of developed and developing economies expansion was well below the 3.2 percent average over the 20 increase by 4.1 percent and 7.2 percent, years leading up to the financial crisis in 2008. Fast growing and imports increase by 3.9 percent and economies in 2011 include the Middle East, Commonwealth 7.8 percent. 4 MACKEREL CERTIFICATES SUSPENDED BY CERTIFIERS The certifiers for seven MSC certified mackerel fisheries in mackerel (NL) the North East Atlantic ocean on 2nd April suspended the - Scottish Pelagic Sustainability Group fisheries’ certificates. North East Atlantic mackerel (UK) The suspension notice follows two years of catches above the - Swedish Pelagic Producers scientific advice as a result of a significant increase in the Organisation North East Atlantic amount of mackerel caught by countries outside the certified mackerel (SW) fleets and the breakdown of international agreements and negotiations aimed at managing the stock. In July 2010, the Nicolas Guichoux, Europe Director of the certified fisheries were notified that – in order to maintain Marine Stewardship Council said: “While their certification and ecolabel – total catches in the North the suspension of these MSC certificates East Atlantic mackerel fishery would need to be brought back is disappointing for both the fisheries and under an internationally agreed management regime. This the MSC, there is a risk that the stock included the catches from countries outside the certified would become depleted as a result of the fleets. The deadline for implementing that notification expired current TAC overshoot. I know that the on 31st December 2011. fisheries involved are making enormous efforts to ensure that this does not The suspension is not the same as a certificate withdrawal as happen and the MSC will continue to suspended certificates can be re-instated on completion of a support these mackerel fisheries condition with no need for a new Full Assessment... throughout this difficult process. I look While the MSC certified fisheries have worked hard to reach forward to the reinstatement of their an international agreement on mackerel management, it certificates once an agreement has been proved impossible to find a solution in time for the deadline. reached.” As a result, in January the fisheries were given 90 days’ notice that their certificates would be suspended at the end of March Suspension, not withdrawal 2012. Any mackerel caught after 30th March is not eligible to The suspension is not the same as a be labelled as ‘MSC certified’. certificate withdrawal as suspended Fisheries affected certificates can be re-instated on completion of a condition with no need - Danish Pelagic Producers Organisation North East for a new Full Assessment of the fishery. Atlantic mackerel (DK) - Irish Pelagic Sustainability Association western mackerel (IE) - Irish Pelagic Sustainability Group western mackerel pelagic trawl fishery (IE) - North East Atlantic mackerel pelagic trawl, purse seine and handline fishery (NO) - Pelagic Freezer Trawler Association North East Atlantic 5 'MARSUNO' PILOT PROJECT DELIVERS FINAL RESULTS Nine northern EU Member States plus Norway and Russia total 24 public authorities were involved. have finalised a pilot project on Maritime Surveillance in the The project's objective was to support Northern Sea Basins (MARSUNO) initiated by the European the creation of the 'CISE' by identifying Commission. practical solutions to overcome legal, These partners make a number of recommendations for technical and administrative hurdles to overcoming the hurdles to creating a Common Information cross-sectorial and cross-border Sharing Environment ('CISE') for the surveillance of the EU information sharing between maritime maritime domain. authorities. MARSUNO is one of two dedicated pilot projects that feed the Commissioner Maria Damanaki welcomed the final report: Commission's six step Roadmap process "Our objective is to ensure safer seas while saving costs.