Despite the trade deal concluded between the European Union and the United Kingdom on 24 December 2020, arrangements for fishing operations in the territorial waters of each party have left a bitter taste.
On the European side, the effects of the 25% drop in fishing quotas over five and a half years are a cause for concern. On the other side of the Channel, Scottish fishermen had hoped to come out with a larger slice of the total allowable catch (TAC) cake.
Following the deal reached on 24 December, the EU negotiator-in-chief, Michel Barnier, announced that the EU had “achieved reciprocal access to waters and to resources [and a] distribution of quotas” that takes account of “Britain’s new status as an independent coastal state, that is a state which will no longer be part of by the common fisheries policy” (CFP).
The President of the European Commission, Ursula von der Leyen, stated that the agreement reached gives the EU’s fishing industry much-needed “full predictability”.
In practice, however, the EU fishing industry will have to make sacrifices and there are still question marks as to what happens post-2026, when the transitional period comes to an end.
“This agreement will require efforts to be made. I am aware of that. But the EU will be standing alongside European fishermen to help and support them”, Barnier said.
The Brexit adjustment reserve, with a total budget of five billion euros, gives the EU member states the option to fund measures to compensate fishing boats that have been the hardest hit by the loss of fishing rights in British waters.
The post-Brexit fishing agreement thus makes provision for a transition period of five and a half years, to run until summer 2026, during which EU fishermen will gradually forgo 25% (in terms of value) of their annual catch in British waters. A 25% reduction is equivalent to 650 million euros a year (value of fish caught in British waters).
At the end of this five-and-a-half year period, the agreement provides for annual negotiations with the British over TAC levels, along the lines of the regular talks conducted by the EU with Norway. United Kingdom could even decide to withdraw access altogether. In such an event, the EU would be able to hit back with sanctions to include closing EU waters and taxes on British fishery products.
Gerard van Balsfoort, Chairman of the European Fisheries Alliance, called it a “dark day” for the European fisheries sector. He stressed that “losing a sizeable chunk of our fishing rights, acquired over many generations of fishermen, is a tough blow”. Furthermore, the “extremely short” transition period “will leave us facing further uncertainties and difficulties in the very near future”, he argued.
Consequences of Brexit. The United Kingdom, which has been an independent coastal state since 1 January of this year, is no longer bound by the rules of the CFP on equality of access of member states to Community waters, the provisions on the distribution of quotas and the sustainable management of resources. Under international law, the EU and the UK are jointly responsible for managing around a hundred shared fish stocks.
British waters (territorial waters up to 12 nautical miles and the adjacent exclusive economic zone up to 200 nautical miles) are no longer classed as EU waters. In the absence of any provision to the contrary, access to waters of third countries is no longer assured.
The trade and cooperation agreement. The agreement sets out new provisions for the joint and sustainable management of the hundred or so shared fish stocks in the waters of the EU and the UK, in full respect of the rights and obligations of each side as coastal independent states, and taking account of the best available scientific opinions. It lays down new provisions on reciprocal access to the waters of the exclusive economic zone and the nautical zone of six to 12 miles, as well as new stable arrangements for the share-out of quotas.
Following a stability period of five and a half years, during which the current rules will remain in place for reciprocal access, the agreement provides for annual consultations to establish the level and conditions for reciprocal access to the exclusive economic zones and territorial waters of each side.
The quota shares for the TAC of all shared stocks will be modified gradually, including the stocks managed trilaterally (for instance with Norway) or within a multilateral framework. These modifications will take account of the need to ensure the sustainable management of marine resources and to preserve the activities and livelihoods of the fishing communities which depend on these waters and these resources.
Quota levels. Under the agreement, the terms for the share-out of quotas will also be modified progressively. The agreed reduction in the EU’s quota shares takes account of the need to ensure a fair share-out of the burden between the member states concerned and to safeguard the livelihoods of the fishing communities which depend on these waters and these resources, the Commission stresses. The agreed quotas are included in the appendices to the agreement.
The EU and the United Kingdom will hold annual consultations jointly to determine TACs for each stock. These consultations take account of scientific opinions and of the relevant socio-economic factors.
Then, these TACs will be allocated to each party in accordance with the quota share-out laid down in the agreement. If, however, the parties fail to agree on catch levels, a provisional TAC will be agreed upon, corresponding to the level advised by the International Council for the Exploration of the Sea (ICES), until such time as an agreement can be reached.
In the event that TACs cannot be agreed upon for 2021 between the EU and the United Kingdom for the jointly managed fish stocks, the Council of the EU established temporary fishing opportunities on 17 December (see EUROPE 12625/6).
Possible sanctions. What happens if one side decides to deny or withdraw access? If, following the adaptation period, one party withdraws access from the other as a result of differences of opinion over TACs, the other can apply compensatory measures, including a suspension of tariff concessions for fisheries products or the total or partial suspension of access to its waters. These compensatory measures will be “proportionate” to the economic and social hardships caused by the withdrawal of access.
One side may also suspend certain provisions of the agreement under a general safeguard clause, should the closure of the waters lead to serious hardships for the communities dependent on the fishing industry.
Figures. The economic value to EU vessels of fishing in British waters represents 637 million euros, according to the latest Commission figures. On average, this represents 12% of the total value of member states’ catch. This value varies considerably between member states, ranging from less than 1% for Spain to 33% for Denmark, 38% for Ireland 43% for Belgium.
Conversely, the United Kingdom’s catch of fish in the exclusive economic zone of the EU27 in value terms is 110 million euros (10% of its total catch). More than two thirds of British fish production is exported to the EU market, while most products consumed in the United Kingdom come from its non-EU trade partners (Iceland, Norway) or EU processing factories, for instance in Germany and Poland.
Fishing licences. The European Commission published information on the fishing licences of the EU member states in British waters at the end of December (http://bit.ly/3s9GbbY ). It clarifies that with effect from 1 January 2021, the United Kingdom and the European Union will exercise the rights of coastal states for the purposes of the exploitation, conservation and management of live marine resources in their respective waters.
Up to 30 June 2026, each side has undertaken to offer boats from the other side total access to its waters to fish for certain specific stocks, some of which are subject to a TAC and some not, in the respective exclusive economic zones (EEZ), between 12 and 200 nautical miles, and in parts of the waters located between six and 12 nautical miles.
The Commission has notified the member states of the lists of vessels authorised to fish in British waters. These boats will receive a licence in compliance with the legislation of the respective parties. The licence will remain valid for the whole of 2021.
The lists of vessels under licence with access to British waters in the 12-200 nautical mile zone are available at: http://bit.ly/3bfSwVP.
The EU/United Kingdom trade and cooperation agreement is available at: https://bit.ly/3nqembI. (Lionel Changeur)