Trade

The US Department of Commerce (DOC) has issued its final decisions in the antidumping (AD) and countervailing duty (CVD) investigations involving shrimp exports from Ecuador, Indonesia, India, and Vietnam.

One of Ecuador’s largest shrimp exporters, Songa, received a zero percent dumping rate, while another major exporter, Santa Priscila, was assigned a 0.48 percent rate, which qualifies as de minimis. As a result, Santa Priscila will not be subject to any penalties or required to make cash deposits on its exports.

Ecuador, one of the leading shrimp suppliers to the US market, welcomed the results. José Antonio Camposano, executive president of Cámara Nacional de Acuacultura, which represents Ecuador’s shrimp industry, expressed satisfaction with the outcome. “This confirms our long-held stance that Ecuador does not engage in unfair trade practices,” Camposano said.

For Indonesia, PT Bahari Makmur Sejati was also given a zero percent dumping rate. However, PT First Marine and other Indonesian exporters were assigned a 3.9 percent rate, indicating that some companies had sold shrimp below fair market value.

The DOC’s probe, which began last year, was initiated following complaints from the American Shrimp Processors Association (ASPA), a trade group advocating for wild-caught US shrimp producers. ASPA sought duties on imports of frozen warmwater shrimp from the targeted countries, alleging unfair competition.

In addition to antidumping duties, the DOC investigated whether the exporters benefited from government subsidies, which could result in countervailing duties. While Indonesia avoided CVD penalties, the investigation found that exporters from Ecuador, India, and Vietnam had benefited from subsidies.

Notably, Ecuador’s combined duty rate dropped significantly, from 13.47 percent to 3.78 percent. Meanwhile, India saw a slight increase in its CVD rate, rising from 5.28 percent to 5.77 percent.

According to Max Bouratoglou, an aquaculture analyst at S&P Global, these final rulings will have wide-reaching effects on global shrimp markets. “The reduced duties provide some relief for Ecuador, easing concerns about demand from the US,” Bouratoglou said, adding that the decision will likely result in lower shrimp prices.

The ruling follows a period of sluggish consumer demand and reduced US shrimp imports, driven in part by preemptive buying ahead of the duty imposition and a drop in Chinese imports.

The outcome of the investigations is expected to bring some stability to shrimp suppliers, especially Ecuador, the second-largest shrimp exporter to the US. “With these final rates, the challenges faced by exporters should ease, fostering better trade dynamics moving forward,” Bouratoglou concluded.

Tokyo, Japan: Skretting, a leading global aquafeed producer, has unveiled plans to invest €10-15 million in its Imari facility in Japan, with a focus on bolstering the production of high-quality feeds for recirculating aquaculture systems (RAS) and expanding offerings to species like yellowtail.

During a recent visit to Japan, Skretting CEO Bastiaan van Tilburg emphasized the strategic importance of this investment. He noted that the upgraded facility will enhance the supply chain for RAS feeds while also improving the overall quality of feed products produced locally for yellowtail farming.

In addition to strengthening feed production, Skretting Japan is actively pursuing ASC (Aquaculture Stewardship Council) certification for its feed. Achieving this certification will help position Japanese farmed fish for international markets, further supporting the export potential of the country’s aquaculture sector.

Japan plays a critical role in Skretting’s growth strategy, with the company aiming to address key challenges such as rising raw material prices and climate change through sustainable feed solutions. The broader goal is to improve profitability across Japan’s aquaculture industry by providing environmentally friendly and efficient aquafeeds.

A recent milestone in Japan’s aquaculture sector highlights the growing potential of domestic fish farming. On September 30, 2024, Japan celebrated its first-ever local harvest of Atlantic salmon. The fish were raised in a state-of-the-art RAS facility in Shizuoka Prefecture, built and managed by Proximar Seafood, a Norwegian company.

Skretting has been a key partner in this venture, working closely with Proximar from the beginning of the project. The global team at Skretting collaborated with their Japanese counterparts to ensure top-tier quality monitoring, making the successful harvest a shared accomplishment for both companies.

“Our feeds currently support 26 million seafood meals every day,” Van Tilburg said. “It’s crucial that we develop a robust protein supply chain capable of meeting future demands, especially as the global population is expected to reach 10 billion by 2050.”

In August 2024, shrimp imports to the U.S. fell significantly by 10.4 percent compared to the same month last year, totaling 146 million pounds (66,194 metric tons). This figure is down from 162 million pounds (73,429 metric tons) recorded in August 2023. However, this month’s imports did see an increase from July, which totaled 134.4 million pounds (60,981 metric tons).

During the first eight months of 2024, shrimp imports experienced an overall decline of 5.3 percent, reaching 1.05 billion pounds (477,021 metric tons), a decrease from 1.2 billion pounds (503,214 metric tons) in the same period the previous year.

India remained the leading supplier of shrimp to the U.S., although its shipments fell by 15 percent year-over-year in August, dropping from 67 million pounds (30,412 metric tons) in 2023 to 58 million pounds (26,302 metric tons) in 2024. Similarly, Ecuador experienced a notable decline, with exports to the U.S. decreasing by 18 percent from 41 million pounds (18,577 metric tons) in August 2023 to 34.1 million pounds (15,462 metric tons) this year.

Indonesia’s shrimp exports also saw a 7 percent drop, declining from 26 million pounds (11,735 metric tons) last year to 24.1 million pounds (10,945 metric tons) in August 2024. In contrast, Vietnam reported a 14 percent rise in its exports, increasing from 14.7 million pounds (6,669 metric tons) to 17 million pounds (7,699 metric tons). Thailand’s exports decreased from 5.9 million pounds (2,669 metric tons) to 3.5 million pounds (1,608 metric tons), while Argentina experienced growth, with shipments rising from 2.7 million pounds (1,246 metric tons) to 3.8 million pounds (1,739 metric tons).

Only a few other countries exported more than 2.2 million pounds (1,000 metric tons) of shrimp to the U.S. in August.

The Southern Shrimp Alliance (SSA) disclosed on October 4 that the U.S. Food and Drug Administration (FDA) had rejected 40 seafood shipments in September, three of which were shrimp containing prohibited antibiotics. The FDA also indicated an additional eight shrimp refusals in August for similar contamination issues, underscoring growing concerns regarding shrimp imports. The number of refusals linked to antibiotic contamination in 2024 has already reached the second-highest level since 2017.

The refusals in August and September were associated with two shrimp processors certified by Best Aquaculture Practices (BAP). Thuan Phuoc Seafoods and Trading Corporation from Vietnam, which boasts a four-star BAP certification, had several shipments of breaded shrimp denied entry due to contamination with veterinary drug residues. Likewise, Avanti Frozen Foods, also holding a four-star BAP certification, faced refusals for shrimp tainted with chloramphenicol, a common antibiotic used to treat eye infections.

The FDA has further updated its import alerts to include Indonesia’s Timur Laut BMSfood, which has been flagged for shrimp contaminated with enrofloxacin and oxytetracycline—antibiotics associated with antibiotic resistance issues. Mega Marine Pride, another Indonesian exporter operating under a four-star BAP certification, had three shrimp shipments rejected for short-weighting in August and September.

The SSA has been critical of BAP’s oversight in the past and maintains a “Check Your Suppliers” webpage to assist importers in identifying shrimp contaminated with antibiotics or produced under conditions involving forced labor.

Source: Seafood Source

The farmgate prices of Vannamei shrimp in Andhra Pradesh, India’s largest shrimp-producing state, have spiked due to limited supplies and rising demand. Prices for 30-40 count per kilogram head-on shell shrimp have increased by ₹50 per kilogram, bringing the rate to approximately $595 per metric ton. Andhra Pradesh, which accounts for over 80% of India’s total shrimp production, has been grappling with disruptions from the “low season” between the first and second crop of the year.

Severe floods in early September further compounded the supply crunch by damaging farms that had recently completed seeding for the second crop. Market observers anticipate that the true impact of these floods will become more apparent when the second crop harvest starts in November.

Producers remain optimistic, hoping the current price rally will extend into the upcoming harvest, fueled by renewed buying interest from international markets. US retail buyers have already begun to re-enter the market, following the temporary suspension of a port workers’ strike on the East Coast, which is set to last until mid-January. According to exporters, the festive season has also prompted retailers to stock up in anticipation of higher demand.

The US continues to be India’s largest shrimp market, with peeled and deveined shrimp leading trade volumes. Additionally, farmgate prices for smaller shrimp sizes have consistently risen since June. The price of 50-60 count per kilogram head-on shell shrimp in Andhra Pradesh increased from ₹250 per kilogram ($2,993 per ton) in June to ₹335 per kilogram ($3,989 per ton) by mid-October.

China has also contributed to the upward trend, with increased demand for smaller headless shell-on (HLSO) shrimp. While China’s overall shrimp imports have declined in 2024, India’s shrimp exports to China surged by 11.19% year-on-year from January to July, underscoring a shift in demand toward smaller shrimp varieties.

Domestically, demand for smaller shrimp is growing, but the absence of a robust local shrimp market leaves Indian producers heavily dependent on international buyers to sustain prices. Meanwhile, Ecuador, the world’s largest shrimp producer, faces its own challenges with rising prices. Energy rationing in Ecuador has tightened supply, threatening to reduce shrimp export revenues by $75 million per month, as per the Ecuadorian Aquaculture Association (CNA). The energy crisis has disrupted not only shrimp farming but also associated industries like feed mills and processing plants.

Industry experts predict that Ecuador’s supply constraints could prompt global buyers to shift focus toward India, especially for value-added shrimp products, potentially driving further price increases in the Indian market.

The Kerala government has launched efforts to restore its position in shrimp exports to the United States, aiming to reverse the decline caused by import restrictions imposed by the US in 2019. At the heart of the issue is the requirement that all trawl nets used for shrimp fishing in India must be certified with Turtle Excluder Devices (TEDs) by the US National Oceanic and Atmospheric Administration (NOAA).

The ban has dealt a severe blow to Kerala’s fishing sector, with shrimp caught from the sea being sold at heavily discounted prices in the domestic market. This slump has resulted in significant income losses for fishermen and peeling workers, triggering concerns about employment and sustainability in the sector.

In response to the crisis, Kerala Fisheries Minister Saji Cherian confirmed that a delegation of officials and representatives from industry stakeholders will soon visit New Delhi to urge the central government to expedite solutions for resuming exports. The installation of TEDs in trawl boats is being viewed as a critical step, not only for meeting US standards but also for reducing bycatch, improving fuel efficiency, and making fishing operations more profitable.

The state has already taken proactive measures, amending the Kerala Marine Fisheries Regulation Act (KMFRA) in 2019 to make TEDs mandatory for bottom trawl nets. The Central Institute of Fisheries Technology (CIFT) has been leading demonstrations on TED installation at several fishing harbors, including Sakthikulangara, Neendakara, Beypore, and Azhikkal, in coordination with the Marine Products Export Development Authority (MPEDA) and its arm, NETFISH.

Stakeholder consultations have also been underway, with a meeting held in July to address the concerns of fishermen and boat owners about the technical and financial challenges of TED installation. The discussions involved representatives from various fisheries bodies, including MPEDA-NETFISH and the Central Institute of Fisheries Nautical and Engineering Training (CIFNET).

Meanwhile, the Kerala State Cooperative Federation for Fisheries Development (Matsyafed) has been tasked with identifying new domestic markets for shrimp to offset the impact of the US ban and falling prices. Officials stress that exploring local avenues could help stabilize the market while efforts to comply with international requirements continue.

The state government remains optimistic that once TEDs are installed across the fleet and trade barriers lifted, Kerala will reclaim its prominence in the lucrative US shrimp market, thereby reviving the livelihoods of thousands dependent on the industry.

In the heart of Chennai, a remarkable success story is unfolding, capturing the essence of resilience, innovation, and entrepreneurial spirit. Freshma, a dynamic omnichannel seafood brand launched in February 2022, is making waves in the industry, promising to redefine how consumers experience seafood. With impressive monthly revenues of INR 2.1 crore and a remarkable 100% revenue growth since its transition to an omnichannel model in January 2023, Freshma is not just a business—it’s a testament to the power of determination and adaptability.

Foundations of Freshma: A Personal Journey

The brainchild of Rajesh Kumar, Freshma emerged from humble beginnings. Rajesh, along with his brothers Ram and Raj Kumar and childhood friend Paranthaman G., ventured into the seafood market after recognizing an opportunity for improvement in an industry often hampered by middlemen and quality control issues. Rajesh’s connection to the seafood trade runs deep, inspired by his father’s longstanding career with the Tamil Nadu Fisheries Department. As a child, Rajesh accompanied his father to work, developing an early understanding and appreciation of the seafood industry.

However, his dreams faced a setback when he applied for a position similar to his father’s and was rejected. Undeterred, he leveraged the contacts he had built over the years and opened his first fish stall in 2016, laying the groundwork for what would become Freshma. The initial venture began with a small loan of INR 20 lakh from family and friends, and Rajesh’s ambition was clear: to establish a presence in the Indian fish market and become the “Fish King” of Chennai.

Navigating Challenges and Finding Opportunities

Rajesh’s journey was not without its challenges. The seafood trade often involved dealing with intermediaries, which meant that the prices consumers paid were significantly marked up, while the fishermen received only a fraction of the profit. Observing this imbalance, Rajesh was determined to change the narrative. He opened additional stalls in 2017 and 2019, and by the time he established his third outlet, he was already supplying fish to larger players, only to realize that these intermediaries were selling the products at nearly double the prices.

The turning point for Freshma came with the onset of the COVID-19 pandemic. Like many businesses, Rajesh faced significant challenges as lockdowns shuttered his stalls and disrupted supply chains. This forced him to reevaluate his business model. With the support of his family and friends, he conceptualized Freshma as a D2C seafood brand, eliminating middlemen to provide consumers with high-quality seafood at competitive prices.

A Commitment to Quality and Sustainability

Central to Freshma’s business model is the focus on sustainability and quality. Unlike many competitors who rely on nets for fishing, Freshma prioritizes sourcing seafood directly from fishermen using hook-and-line methods. This approach not only ensures the freshness of the catch but also minimizes the risk of dead or stale fish, which can occur when nets are left in the water for extended periods. Rajesh and his team have limited their procurement to the Bay of Bengal, known for its superior fish quality.

“The key distinguishing factor in our procurement lies in the hook-caught seafood we sell,” Paranthaman G. explained. “Given that a fisherman’s net sits in a water body for 5 to 6 days, there are possibilities of catching dead or stale fish. Further, we have restricted our procurement to the Bay of Bengal because of the superior quality of fish in this region.”

This commitment to freshness and quality sets Freshma apart in a market often flooded with chemically treated seafood. Rajesh identified a significant gap in the market regarding the excessive use of preservatives and chemicals in fish products. “When it comes to choosing fish, consumers seek freshness and variety, but with today’s fast-paced lifestyles, convenience is key. Our aim is to provide this convenience and value, sans middlemen,” he stated.

Leveraging Digital and Social Media Influence

Since its inception, Freshma has embraced an omnichannel strategy, offering customers multiple avenues to purchase seafood. The brand quickly gained traction, becoming a favorite among consumers. A significant contributor to Freshma’s visibility is Paranthaman G., who also serves as the group CEO. With over 200,000 followers on Instagram, Paranthaman uses his influence to promote the brand and enhance its aesthetic appeal. His online presence has helped establish a strong connection with consumers, creating a loyal customer base eager to explore the offerings of Freshma.

The company has expanded its physical presence, currently operating eight stores in Chennai. Freshma has harnessed the power of digital marketing and social media to strengthen its omnichannel approach, allowing customers to experience the brand both online and offline.

Looking Ahead: Growth and Expansion Plans

Freshma’s growth trajectory is nothing short of inspiring. The brand is poised to achieve FY24 revenues between INR 35-40 crore, with INR 46 lakh expected from its online business alone—a 100% increase from INR 17 crore in FY23. With a robust foundation in place, the company plans to open three additional stores in Coimbatore in the upcoming quarter, further expanding its footprint in Tamil Nadu.

However, the path to success is not without its challenges. Freshma aims to convert its offline customers into online shoppers, a task that requires significant investment in advertising and marketing. To support this growth, the company is actively seeking to raise INR 20 crore in seed funding.

“As of now, the most pressing task at hand is to convert offline consumers to online,” Paranthaman emphasized. “Our first appearance outside Chennai will be in Coimbatore with three stores in the next three months. Bengaluru and Trichy will follow next. But, online growth will need more investment in terms of advertising and marketing.”

A Model for Future Entrepreneurs

The journey of Freshma is a powerful narrative of resilience, adaptability, and the relentless pursuit of excellence in the face of adversity. Rajesh Kumar and his team have transformed challenges into opportunities, setting a benchmark for aspiring entrepreneurs in India’s seafood industry and beyond.

As Freshma continues its quest to become the “Fish King” of Chennai, it embodies the spirit of innovation and determination that characterizes the thriving Indian startup ecosystem. The company’s story is a reminder that with passion, a commitment to quality, and a focus on consumer needs, it is possible to carve out a unique space in a competitive market.

With a strong vision and a dedicated team, Freshma is not only positioning itself for success but also inspiring a new generation of entrepreneurs to chase their dreams and disrupt traditional markets. As they chart their course, the seafood brand’s impact on the industry is poised to be significant, ensuring that fresh, quality seafood is accessible to all. The future indeed looks bright for Freshma and the values it stands for.

Source: Inc42

Vietnam’s fishery exports reached USD 866 million in September, pushing the total for the first nine months of 2024 to USD 7.16 billion, marking an 8.5% year-on-year growth.

After years of challenges due to COVID-19, global conflicts, and inflation, international markets are stabilizing, allowing Vietnam’s fishery exports to regain strength, particularly in the second half of the year.

In the third quarter alone, fishery exports surged to USD 2.76 billion, reflecting a nearly 13% increase compared to the same period in 2023. Major products demonstrated significant growth, with tra fish exports rising 13.5%, shrimp 17.5%, crab 56%, and shelled mollusks 95%.

Shrimp remains Vietnam’s top export earner, generating around USD 2.8 billion in the first nine months, a 10.5% increase. Despite competition from Ecuador and India in frozen shrimp, processed shrimp continues to hold a strong market presence. Overseas shipments of processed whiteleg shrimp grew by nearly 10%, and frozen whiteleg shrimp exports increased by 4.5%.

Tra fish exports brought in USD 1.46 billion from January to September, an 8% year-on-year increase, with processed tra fish products growing by 42%. Tuna exports, though strong earlier in the year, slowed since August due to raw material shortages but still rose by 16%, reaching USD 715 million over the nine-month period.

Crab exports saw exceptional growth, increasing by 56% in the third quarter and 66% over the first nine months, driven largely by Chinese demand.

The Vietnam Association of Seafood Exporters and Producers (VASEP) forecasts that total fishery export value in 2024 will reach USD 9.5 billion, representing a 7% rise compared to 2023. Shrimp exports are expected to approach USD 4 billion, with tra fish reaching USD 2 billion, tuna close to USD 1 billion, and squid and octopus at about USD 640 million.

Source: Vietnam Net Global

In a significant policy shift, the interim government of Bangladesh, led by Nobel laureate Muhammad Yunus, has approved the export of 3,000 tonnes of Hilsa fish to India, just ahead of the major Hindu festival of Durga Puja. This decision marks a reversal of the government’s earlier stance, where it had planned not to export Hilsa this year in an effort to boost domestic supply. The fish holds immense cultural and economic value in both Bangladesh and India, particularly during festival seasons.

Hilsa, known for its delicate taste and texture, is a beloved fish in the Bengali diet, and its demand peaks in India, especially during the Durga Puja festival. The eastern region of India, particularly West Bengal, Odisha, and Assam, has a long-standing tradition of consuming Hilsa during religious festivities. The fish is seen as a symbol of celebration and prosperity during these times, making its availability highly anticipated.

Earlier, the Bangladeshi government had expressed concerns over maintaining sufficient supply for its own population, leading to the decision to halt exports for the year. However, the growing demand in India and the historical significance of exporting Hilsa during Durga Puja has prompted the government to revise this decision.

A report from leading Bangladeshi media outlet, The Daily Star, citing sources from the Commerce Ministry, confirmed the approval of Hilsa exports. The official statement from the ministry read:

“The export of 3,000 (three thousand) metric tonnes of Hilsa fish has been approved against the application of various exporters on the occasion of the upcoming Durga Puja. The concerned applicants are requested to apply with necessary documents to the Ministry of Commerce (Deputy Secretary, Export-2 Branch, Room No. 127, Building No. 3, Ministry of Commerce, Bangladesh Secretariat) by 24/09/2024. Applications received after the mentioned deadline will not be accepted. Note that those who have already applied do not need to apply again.”

This move is in line with the tradition of exporting Hilsa to India, a practice that has continued for several years. In 2023, the Bangladeshi government had allowed 79 companies to export 50 tonnes of Hilsa each, amounting to a total of 4,000 tonnes. The allocation was made just in time for Durga Puja, highlighting the economic and cultural ties between the two neighboring countries.

Hilsa is widely regarded as one of the most prized fish species in both Bangladesh and India, particularly for its rich taste and the culinary pride it brings to the Bengali kitchen. Despite its popularity, Hilsa’s availability has been threatened by overfishing and environmental changes, which has led both governments to carefully regulate its harvest and export.

The approval of Hilsa exports is expected to strengthen trade relations between Bangladesh and India, especially as both countries have a shared cultural connection through the celebration of Durga Puja. The export volume, though smaller than last year, is likely to meet some of the demand surge in India during this festive period.

This decision reflects the ongoing negotiations between the two nations, balancing domestic needs with regional demand, and maintaining a historical trade tradition. The fish’s symbolic role in cultural festivities on both sides of the border underscores its significance beyond being a mere commodity. As Durga Puja approaches, this decision is set to satisfy the appetites of millions of consumers who eagerly await the arrival of Hilsa on their festive plates.

Bangalore-based startup Loopworm, which specializes in farming and processing insects for various uses, including aquafeeds, has recently achieved several significant certifications for its insect protein production facility with a capacity of 6,000 tonnes. The company proudly announced that it has secured ISO 22000, GMP+, and HACCP certifications, bolstering its standing in the global market.

The ISO 22000 certification underscores Loopworm’s commitment to producing its insect-based products under tightly controlled, hygienic conditions, ensuring no contamination occurs during the process. This assures customers that Loopworm’s products are safe for animal consumption and do not introduce harmful pathogens into the food supply chain.

The startup’s GMP+ certification (Good Manufacturing Practices for Feed) further confirms the consistent quality and safety of its feed products, ensuring compliance with international standards. This certification is particularly important as it opens doors for Loopworm to explore export opportunities in key markets such as the European Union, which enforces stringent quality and safety regulations.

Additionally, the HACCP (Hazard Analysis and Critical Control Points) certification guarantees that Loopworm’s products are free from biological, chemical, and physical contaminants, further emphasizing the company’s dedication to quality control throughout the production process.

Ankit Alok Bagaria, co-founder of Loopworm, shared: “These certifications firmly establish Loopworm as a trusted and responsible supplier. By meeting global safety and quality standards in the pet food and animal feed industries, Loopworm is well-positioned to expand into crucial markets like Europe, where strict regulations apply. Whether working with pet food brands or animal feed producers, these certifications reflect our unwavering focus on delivering safe, high-quality, and sustainable products.”

With these certifications in place, Loopworm has solidified its position as a reliable supplier in the global insect protein market, reinforcing the confidence of both pet food and animal feed manufacturers. The company’s focus on food safety and quality not only protects animal health but also ensures compliance throughout the entire production process.

Top of Form

Bottom of FormSource: The Fish Site

Global trade in marine fisheries and aquaculture reached a record $186 billion in 2022, a 63% increase from $114 billion in 2012. Particularly notable is the rise of South-South trade — commerce between developing nations — which doubled over the same period, growing from $19 billion to $39 billion. This boom highlights the significant opportunities in the sector for sustainable economic growth, but also underscores the challenges that must be addressed, including trade barriers, overfishing, and climate change.

According to a new analysis by the UN Conference on Trade and Development (UNCTAD), developing countries are rapidly expanding their trade in marine fisheries, aquaculture, fish processing, and fishing vessels. Countries like Chile, China, Ecuador, India, Peru, Thailand, and Vietnam are at the forefront of this movement, accounting for 46% of global seafood exports in 2022 — up from 42% in 2012. Even more impressively, developing nations contributed 53% of higher-value processed seafood exports, compared to 40% for unprocessed goods, showcasing their success in adding value to their marine exports.

“This growth in South-South trade signifies a new era where developing countries are increasingly trading with each other, retaining more economic benefits locally while creating jobs and fostering innovation,” says David Vivas Eugui, head of UNCTAD’s ocean and circular economy section. He notes that this shift not only improves food security and provides protein-rich foods to coastal populations, but also strengthens local industries and increases their capacity to compete in international markets.

Competitive Advantage of Developing Countries

UNCTAD’s Revealed Comparative Advantage analysis highlights several countries excelling in specific marine products:

1. Mozambique: Exports rock lobsters and sea crawfish.
2. Argentina: Known for frozen hake, a globally prized fish.
3. Morocco: Dominates with processed sardines.
4. Peru: Specializes in preserved anchovies from nutrient-rich stocks in the Humboldt Current.

These specializations allow developing countries to capitalize on global markets, driving economic growth and diversifying export portfolios.

Challenges: Climate Change, Overfishing, and Trade Barriers

Despite the significant growth, the sector faces considerable hurdles. Overfishing remains a critical concern, with overfished stocks tripling since 1974 and more than one-third of the world’s assessed fisheries classified as overfished. Climate change exacerbates these issues by affecting sea temperatures and ecosystems, threatening both marine life and the livelihoods dependent on these resources.

Non-tariff measures (NTMs) — rules and regulations other than tariffs — pose another major challenge. NTMs, including sanitary and phytosanitary (SPS) standards and technical barriers to trade (TBT), often increase compliance costs for exporters and restrict market access. A staggering 93% of fish product imports are affected by SPS measures, while 82% face TBT hurdles.

Revitalizing the Global System of Trade Preferences (GSTP)

To unlock further growth, there is a pressing need to revitalize the Global System of Trade Preferences (GSTP) among developing countries. This agreement promotes trade by offering preferential treatment in tariffs and other barriers. Despite lower tariffs under the GSTP, NTMs continue to obstruct trade flows. Harmonizing and reducing NTMs could enhance market access and help developing countries integrate more fully into global value chains.

In 2022, GSTP members accounted for over 60% of developing countries’ total exports in marine fisheries and aquaculture, underlining the agreement’s vital role in fostering South-South trade. The GSTP’s 42 member countries, spanning Africa, Asia, and Latin America, represent a market of 4 billion people, offering enormous potential.

“The GSTP provides a unique platform for addressing trade challenges by fostering cooperation among developing countries,” says Chantal Line Carpentier, head of UNCTAD’s trade, environment, and climate change branch. Revitalizing the GSTP could increase trade flows, improve food security, and promote sustainable economic development across the developing world.

UNCTAD urges renewed commitment to the GSTP to unlock the untapped potential of South-South trade in fisheries and aquaculture, benefiting developing nations and helping advance key Sustainable Development Goals (SDGs), such as improving food security (SDG 2) and protecting marine life (SDG 14).

Source: UNCTAD