If everything goes to plan and the stars align, those close to the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union say the multi-billion dollar deal could come into being in early 2017.
This historic agreement has enormous potential for the Canadian fishing industry, as more than 98 per cent of the tariffs on seafood exported to the EU will be dropped immediately.
Local seafood processors will have nearly unfettered access to the biggest economy in the world — with 500 million potential customers living within the borders of the 28-country EU.
There is of course the still nagging issue between Ottawa and the Newfoundland and Labrador government over the joint federal/provincial $400-million fund tied to CETA. However, things have been very quiet on this front as of late, pointing to a thawing of relations between the two governments and possibly an agreement in the foreseeable future. But of course, only time will tell and one doubts this kerfuffle will slow down the CETA documentation coming into fruition next year.
So with Canadian companies looking to expand their sales further into the international EU marketplace, let’s take a look at where this country fits in on the world seafood stage.
With Canada bordering on three oceans and a commercial fishery dating back to the 1500s, many would be surprised to learn the Great White North currently has the 22nd ranked capture fishery in the world.
According to the most recent (2014) statistics from the United Nations’ Food and Agriculture Organization (FAO), Canada’s capture fishery produced 862,365 tonnes of seafood. While still an impressive number, Canada’s production has decreased over recent years — in 2003, the commercial fishery produced more than 1.1-million tonnes.
Out of the 57 seafood producing countries that the FAO tracks on an annual basis, Canada is hovering in the middle of the pack.
What also might be surprising for some is the list of fishing countries that produce more seafood than Canada.
Nobody will be shocked by the number one producing country in the world — China’s 2014 total was a staggering 17,106,547 tonnes. This was nearly three times the amount of fish caught by the number two country, Indonesia, which landed 6,436,715 tonnes.
However a surprising statistic is the country holding down the number three spot — and no it is not an Asian country. This country, producing 4,975,947 tonnes, is none other than Canada’s neighbour to the south, the United States of America. In 2014, the U.S. fishery produced nearly six times the amount of fish than Canada. One of the main factors driving this discrepancy involved Alaskan pollock. In 2014, more than 3.2-million tonnes of the groundfish was landed, making it the number one produced fish in the world, just ahead of the lowly anchovy. The top five was rounded out by skipjack tuna, chub mackerel and Atlantic herring.
If you are wondering about Atlantic cod — that same year, global fishermen brought in nearly 1.4 million tonnes — placing it at number nine on the list of the 70 most productive species tracked.
So what other notable countries have larger fisheries than Canada?
In recent decades, the commercial fishery, particular in Atlantic Canada, has drawn comparisons to that of Norway, Iceland and Greenland. In the fishing year 2014, Norway placed 11th in the world with 2,301,609 tonnes, while the tiny nation of Iceland came in 20th place with 1,076,769 tonnes landed. The Greenland commercial fishery brought in just shy of 292,441 tonnes.
What about the growing aquaculture industry?
In 2014, nearly 74-million tonnes of seafood was produced worldwide by the aquaculture industry. Of that total, China alone was responsible for more than 45-million tonnes — by far and away the world leader.
Canada did not even make the list of the top 28 FAO aquaculture-monitored countries in 2014. In 2012, Canada came in at number 25 with 173,352 tonnes of product. By comparison, the U.S. produced more than 425,000 tonnes while Norway’s aquaculture industry (sixth largest in the world) was responsible for in excess of 1.3-million tonnes.
So what do all of these statistics mean?
Is Canada destined to always be a middle-of-the-road seafood producing country or is CETA the ray of light this industry needs to put itself on the map and be a true global leader in quality and sustainable seafood products?
Seafood is in greater demand around the world than ever before.
According to the FAO, “in 2011, global per capita consumption of fish was estimated at 18.9 kilograms, with fish accounting for 16.7 per cent of the global population’s intake of animal proteins and 6.5 per cent of all proteins consumed. Globally, fish provides three billion people with almost their average per capita intake of animal protein and 4.9 billion people with 10 per cent of such protein. Estimates for 2012 indicated a further growth in per capita consumption to about 19.3 kilograms.”
And who is eating this seafood? It appears Canada’s soon-to-be free trade partners in the EU are eating more than their fair share.
“In 2012 about 73 per cent of total fisheries imports were in developed countries, with the United States and Japan together accounting for 27 per cent of the total. Imports by the European Union member organization represented a share of 36 per cent of total world imports. However, if intraregional trade among its member countries is excluded, the share declines to 23 per cent of world imports. This still makes the EU the largest market in the world,” the FAO has stated.
With the ratification of the CETA deal, Canada’s seafood industry stands on the precipice of something huge. The potential of these new tariff-free markets appears to be nearly unlimited. The Canadian industry needs to start preparing now. Let’s hope harvesters and producers alike are ready when the tariffs fall in less than 12 months.
