Ending the Use of Flags of Convenience by Pirate Fishing Vessels
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LOWERING THE FLAG ENDING THE USE OF FLAGS OF CONVENIENCE BY PIRATE FISHING VESSELS A REPORT BY THE Protecting People and Planet in collabora������������������������ Foundaon for Internaonal Environmental Law and Development (FIELD) and Kalipso LOWERING THE FLAG 1 Protecting People and Planett 1 Amwell Street 41, Avenue des Azalées 3 Endsleigh Street London EC1R 1UL, United Kingdom Quatre Bornes, Maurius London WC1H 0DD, UK Tel +44 (0) 20 7239 3310 Tel: +230 465 3889/ +230 465 field@field.org.uk Fax +44 (0) 20 7713 6501 3913 | Fax: +230 466 459 www.field.org.uk [email protected] www.kalipso.mu Registered charity no: 802 934 www.ejfoundaon.org The Environmental Jusce Foundaon is a UK NGO working internaonally to ensure environmental security and defend basic human rights. Charity registered in England and Wales (No. 1088128). PDF version of this and other EJF reports can be found at www.ejfoundaon.org/reports EJF’s Save the Sea campaign is generously supported by: Comments or queries about EJF’s projects to protect the marine environment and coastal communies in the global south should be directed to [email protected]. This document should be cited as: EJF (2009) Lowering the Flag – Ending the use of Flags of Convenience by Pirate Fishing Vessels. London ISBN No. 1-904523-19-6 This report was researched, wrien and produced by the Environmental Jusce Foundaon (EJF). This report has been generously supported by: Layout and cover design by Guilherme Altmayer. Printed on 100% post-consumer waste recycled paper using vegetable-based inks. EJF, FIELD and Kalipso would like to thank the following people and their organisaons for the invaluable me and assistance IMPORTANCE NOTICE: Much of the data collected in this report with informaon, ideas and visual materials used in this report, has been compiled using Lloyd’s Register of Ships. It is impor- but we in no way imply that they endorse the report’s content or tant to note that data obtained from Lloyd’s has limitaons, as conclusions. only vessels with IMO numbers are included. This is likely to Greenpeace Internaonal, Ma Gianni, Judith Swann, Marni mean that there are more fishing vessels without IMO numbers Gotje, Michael Earle, Gilles Hosch, Frank Meere, Maurian Fishing that fly Flags of Convenience than those idenfied in the data Communies in this report. Informaon available on Lloyd’s databases is also subject to the limitaons of informaon reporng, and may be All images copyright Environmental Jusce Foundaon (EJF), inaccurate. As vessels can and do reflag, oen frequently, data unless otherwise indicated. available on Lloyd’s can also be out of date. 2 LOWERING THE FLAG LOWERING THE FLAG ENDING THE USE OF FLAGS OF CONVENIENCE BY PIRATE FISHING VESSELS CONTENTS Execuve Summary 4 Introducon 5 What is IUU Fishing? 6 What are Flags of Convenience? 7 Flag of Convenience States 8 How Flags of Convenience facilitate IUU fishing 10 Who is Responsible? 12 Fishing Vessels flagged to FoC States 13 Why FoC Countries fail to fulfil their Flag State Responsibilies 14 Fisheries Support Vessels 15 Case Study - Reefers, FoC, and IUU fishing in West Africa 17 Who Benefits? 19 Do FoC States benefit financially from flagging Fisheries Vessels? 20 Flags of Convenience and the exploitaon of crews 22 FoC States face economic loss - New regulaons and trade sancons 23 Case Study: Maurius 25 Current Status of IUU Fishing 26 Addressing Flags of Convenience 28 Conclusions 32 Recommendaons 33 References 34 GLOSSARY CHOGM Commonwealth Heads of Government Meeng IMO Internaonal Marime Organisaon CCAMLR Commission for the Conservaon of Antarcc Marine Living IOTC Indian Ocean Tuna Commission Resources IPOA Internaonal Plan of Acon DfID Department for Internaonal Development (UK) ITF Internaonal Transport Workers Federaon DG Mare Directorate-General for Marime Affairs and Fisheries ITLOS Internaonal Tribunal for the Law of the Sea (European Commission) IUU Illegal, Unreported and Unregulated (Fishing) DWFN Distant Water Fishing Naons LSFV Large Scale Fishing Vessels EC European Community MCS Monitoring, Control and Surveillance EEZ Exclusive Economic Zone EU - European Union MRAG Marine Resources Assessment Group FAO United Naons Food and Agriculture Organisaon OECD Organisaon for Economic Co-operaon and Development FoC Flag of Convenience PoC Port of Convenience FONC Flag of Non-Compliance RFMO Regional Fisheries Management Organisaon ICCAT Internaonal Commission for the Conservaon of Atlanc UNCLOS United Naons Convenon on the Law of the Sea Tuna UNFSA United Naons Fish Stocks Agreement ILO Internaonal Labour Organisaon VMS Vessel Monitoring System LOWERING THE FLAG 3 EXECUTIVE SUMMARY Illegal, Unreported and Unregulated (IUU) or ‘pirate’ fishing • As well as fishing vessels, refrigerated transport ves- is plundering fish stocks, devastang marine environments sels (know as ‘reefers’) flying FoC have been widely and stealing from some of the poorest people of the world. implicated in IUU fishing operaons; in West African IUU is the term given to any fishing acvity that contra- field invesgaons undertaken by EJF virtually all IUU venes naonal or internaonal laws, such as using banned reefers were documented flying FoC. Reefers allow IUU fishing gears; targeng protected species; operang in fishing vessels to tranship their catches, restock on food protected or reserved areas or at mes when fishing is pro- and bait, refuel and re-crew without having to make hibited; or operang without any form of permit or license the lengthy (and costly) journey to port. 700 reefers are to fish. IUU fishing vessels cut costs to maximise profits and currently registered with FoC; Panama, Bahamas and use a variety of means, including Flags of Convenience to Liberia account for 70%. Even those reefers whitelisted avoid detecon and penalty for wrongdoing. by RFMOs favour FoC; 86% of Fish Carriers on ICCAT lists are taking advantage of FoC registraon • Globally, pirate fishing accounts for US$10 – 23.5 billion a year, represenng between 11 and 26 million tons • European Union(EU) and East Asian companies domi- of fish. It is a highly profitable acvity being driven by nate the ownership of FoC vessels. Taiwanese, South the enormous global demand for seafood, threatening Korean, Chinese and Japanese companies are signifi- the future of world fisheries. The impacts are social, cant, while overall EU ownership of fishing vessels flying economic, and environmental. Many IUU operators FoC has increased by 9% since 2005. There has been a deliberately target poor developing countries. recent large shi in ownership of vessels flying FoC to Panamanian companies, however it is likely that many • While internaonal law specifies that the country whose of these are shell companies registered in Panama by flag a vessel flies is responsible for controlling its acvi- foreign, and hidden, beneficial owners. es, certain states operate ‘open registries’ that allow foreign-vessels to fly their flag for a relavely ny fee. • Economically the benefits to FoC States of registering Known as Flags of Convenience (FoC), many of these fishing vessels are minimal. Annual revenues are es- countries lack the resources or the will to monitor and mated to accrue US$3-4 million to the major FoC regis- control vessels flying their flag, allowing pirate fishing tries from flagging fishing vessels, a ny amount when operaons to avoid fisheries regulaons and controls. compared to the millions of dollars lost by individual countries and the billions lost globally to IUU fishing. • FoC are notoriously easy, quick and cheap to acquire, obtainable over the internet for just a few hundred dol- • Among FoC States further economic losses are now lars. Vessels can re-flag and change names several mes likely as a result of trade sancons by RFMOs, as well as in a season, a pracce known as “flag hopping”. Backed the incoming EU-IUU regulaon, due to be implemented by shell companies, joint-ventures and hidden owners, in January 2010. This will target non-cooperave States, FoC reduce the operang costs associated with legal leaving FoC countries that depend on fisheries exports fishing, and make it extremely difficult to idenfy and extremely vulnerable to losing access to the largest penalise the real owners of vessels that fish illegally. seafood market in the world. • Available data indicates that there are currently 1061 • In light of the current crisis facing global fisheries, fishing vessels equal to or longer than 24 metres regis- failure to end the exploitaon of FoC by IUU fishing tered with FoC. Globally a further 8.5% of fishing vessels operaons will undermine efforts to achieve sustainable are listed as ‘flag unknown’, although it is likely that fisheries management, marine ecological security and some of these are flying FoC. Regional Fisheries Man- the development of many, primarily developing, coastal agement Organisaon (RFMO) blacklists are dominated States. Closing open registries to fishing vessels offers by vessels registered to FoC or flag unknown. While an efficient and cost-effecve measure to combat IUU some RFMO whitelists of authorized vessels do contain fishing. This report therefore calls for acon to end the a number flagged to FoC, total RFMO lists added to- granng of Flags of Convenience to fishing vessels, and gether do not approach the total number of FoC fishing those vessels that support fishing acvies, by indi- vessels - leaving open the queson of how and where vidual States, RFMOs, and bodies such as the European these vessels are operang. Union, Commonwealth and United Naons. 4 LOWERING THE FLAG INTRODUCTION ‘Flags of Convenience are the scourge of ©EJF today’s mari��me world. ����������������������e affects both fisheries and transport, although oil spills, given their spectacular dimension, mobilise public opinion more easily than the pernicious damage done to the marine environment by fishing vessels.’ Franz Fischler, former EU Commissioner for Fisheries (2004)1 Globally, Illegal, Unreported and Unregulated (IUU) ‘pirate’ fishing operaons are undermining aempts at sustainable FLAGS OF CONVENIENCE AND fisheries management, causing extensive damage to the ma- IUU FISHING rine environment, and jeopardising livelihoods and food secu- rity, parcularly in developing countries.