Most people in Atlantic Canada will not have to read this editorial to realize that this month marks the 25th anniversary of the infamous cod moratorium.
On July 2, 1992, John Crosbie put, what many thought, would be the final nail in the coffin of what was once the largest cod fishery in the world. The feeling at the time was the fishery in Newfoundland and Labrador, as it was known at the time, was over. But despite the initial shock and despair at the time, the fishery was forced to look to new species and markets and eventually reinvent itself.
As a result, the year 1992 will forever be looked upon as a turning point in the East Coast fishery.
However, will 2017 also be tagged with an asterisk in the history books as also being a milestone or game changer for the fishery in Atlantic Canada?
This year will finally see the implementation of the long-awaited Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA). After years of negotiations, endless talk, speculation and promises, this deal is about to become a reality.
In fact, Bill C-30, the CETA implementation legislation, has been passed by the Government of Canada and received Royal Assent, so an announcement on the date of implementation is imminent.
Politicians and diplomats have been promising big things for Atlantic Canada’s fishing and seafood industry if and when this deal actually materializes, but is it the panacea some make it out to be?
From the 30,000-foot level, CETA certainly looks promising for local seafood exports.
The EU is the world’s largest importer of fish and seafood products — gobbling up $32.2-billion worth of products in 2015. This accounts for 27 per cent of the world’s total fish and seafood imports. As well, the average EU resident consumes, on average, 23.9 kilograms of seafood annually.
In the past, Canadian seafood exports have been saddled with EU tariffs for fish and seafood averaging 11 per cent, with some being as high as 25 per cent.
When CETA comes into force, almost 96 per cent of EU tariff lines for fish and seafood products will be duty-free immediately and in seven years, 100 per cent of these tariff lines will be dropped.
So how will each Atlantic province fare in this new duty-free era?
Could Nova Scotia be the big winner? Due to its growing lobster industry, it is already a major exporter of seafood, so CETA has the potential for further significant growth.
Shellfish such as lobster, scallop and snow crab now account for almost 50 per cent of the total catch in Nova Scotia, so it stands to be a major winner when the tariffs are dropped.
Nova Scotia’s seafood industry has made significant progress in transforming itself from a resource-driven to a market-driven, sustainable sector.
To the east, in light of recent quota cuts in snow crab and Northern shrimp, the Newfoundland and Labrador fishery is currently focused on diversification, revitalization and long-term sustainability.
The province is a significant exporter of fish and seafood goods, with some of its key exports in the sector, including shrimp, snow crab and pelagics. But perhaps one of the biggest areas of potential for Newfoundland and Labrador could ironically be in the area of groundfish. With cod stocks improving and quotas on the increase, this centuries-old producer and exporter is now looking to get back into the groundfish game and CETA could be the ticket.
While New Brunswick has not traditionally exported as much fish to the EU as Nova Scotia or Newfoundland and Labrador, it also stands to grow markets in Europe.
The main reason has to do with the province’s approach to industry growth. New Brunswick has earned an international reputation for developing policies and programs that support environmentally responsible practices and a sustainable approach to development. The government of New Brunswick has committed to ensuring sustainable fisheries and aquaculture, as well as healthy and productive aquatic ecosystems. Product traceability and sustainability is something many of the European consumers will be looking for as part of their future seafood purchases.
Canada’s smallest province also stands to make huge gains from CETA. For several years, the Prince Edward Island lobster industry has worked hard in marketing its core product overseas and securing EU buyers, notably in France.
The dropping of the protective tariffs will immediately open up new market opportunities for P.E.I. lobsters, while eliminating the suffocating duties that in many cases made difference between profit and loss for Island processors.
The P.E.I. aquaculture industry should also see a boost, particularly mussel exporters, as the current 20 per cent on the tasty shellfish will also be dropped.
The jury is still out on who will be the big winner in the Atlantic Canadian/EU seafood export game — but it is a safe bet that all four provinces are standing on the precipice of expanding markets.
