Closing of Symposium International seafood trade

Closing of Symposium

International seafood trade:

Challenges and opportunities

Honourable Minister of Fisheries

Mr. Einar K. Guðfinnsson

Ladies and Gentlemen.

Trade is a cornerstone of development. Iceland has witnessed first-hand the positive economic effects of trade. In the course of a few decades, the Icelandic population has come from poverty to enjoy one of the highest living standards in the world. Trade liberalisation has been crucial in this development. We not only believe, we know that trade works and millions of people could be lifted out of poverty like the Icelandic nation in the past.

The last decade has seen increased freedom of trade in Iceland. Capital transfer was liberated; the state finances have become stable with debts being paid and decreased, state-owned enterprises being privatized and the economic management framework being as good as it can be. There is one area, however, where things might have moved a bit faster - namely in international trade.

The main measurement of the prosperity of nations is the gross domestic product (GDP) per capita. Various research indicates that there is a strong correlation between freedom in international trade and economic growth. Such research also indicates that nations that have increased their free trade experience a higher long-term level of economic growth. Measures that are aimed at increasing international trade therefore have positive impact on the prosperity and welfare of the citizens. The old theory of the British economist, David Ricardo, certainly fully applies today: he said that every nation should specialize itself in the production of the commodities in which it has a comparative advantage. Increased international trade and the free flow of commodities promote the specialization of the workforce and generate increased competition and innovation. Free international trade serves the interests of all because:

·        Local consumers pay lower prices for comparable goods

·        Employees receive higher wages for their input

·        Manufacturers receive higher payment for their production

·        Deadweight loss by the society is minimized

This certainly applies to fisheries. Subsidies and other economic distortions, have served as obstructions to free trade in fisheries production. It therefore lays burdens on fish producing nation and definately leads to an over exploitation of fish stocks. One can therefore say with full confidence that isolationist policies are adversery to the idea of good and responsible fisheries management. Not least with reference to this fact I would like to urge all those who wants to exploit new potential in fisheries to bear this in mind. A prerequisite to a progress and maximum yield in exploiting our natural marine resources is a free trade for fishery products on a global scale.

Improved economic growth is a goal of all authorities, of all countries. I have at least never heard any government say that it doesn’t want higher growth. With economic growth, poverty can be reduced, education improved, children can be fed and so on and so forth.

But how can countries increase their economic growth? This is certainly a complex question and there are many possibilities. I for one do not pretend to have the answer to such a million dollar question. But I am surely not the only one to wonder why fisheries is not more often mentioned in this context. That, in my view, is a mistake. Fisheries can be, and in many countries really should be, an engine of growth. I say this judging from our own experience, because in my country this has been the case for decades. Iceland was one of the most backward country in Europe in the beginning of the 19th. century but is now one of the most prosperous one.

This of course is due to a number of factors. An emphaisis on fisheries as a modern industry certainly however plays a major role. We have never been able to afford anything less than an efficient fishing industry. Fisheries is the major industry in our economy and has been for decades. The high growth rate has therefore been driven mainly by the outstanding performance of our fisheries and fishing industry, although I would not like to underestimate other very important contributers to our economic performance. Particularly in recent years.

In too many countries, fisheries is not looked upon as a modern industry, obeying accordingly to the strict rules of the market economy. Fisheries is unfortunately in industrialised countries all too often seen as an integral part of social measures, which thus has contributed to its poor economic performance. That is a model to avoid. Fisheries and the fishing industry should be seen as means of generating better living standards.

In many places one sees new potentials, not least in the field of aquaculture, in improved fisheries management, increased knowledge, better yields and marketing. This is an objective of every progressive industry and will be the key to a further achievements. This is where I believe Iceland can play a role. In helping with the development of fisheries and aquaculture in developing countries. I would be the first one to admit that we have had our shares of mistakes in the past. We have, however, tried to learn our lessons and move forward although we still have a lot to learn.

Today, we are however at the forefront of fisheries in the world. We define our fisheries as a knowledge based, efficient industry, run by able management and employed by an efficient workforce. Fisheries as such are relatively well paid occupation though one must admit that the processing is unfortunately lagging behind. Due to increased efficiency, the number of people employed in fisheries, is declining. The technological advancement has led to that development.

The presence of a thriving and dynamic fishing industry in Iceland has initiated new industries which are based on the idea of serving the fishing industry, first in Iceland and later the whole world. This has been an important part of our economic development through the years.

We have participated quite extensively in development fishery projects in developing countries. The policy behind these projects has been to listen to our partners and never attempt to impose our culture – on others. We see our work as a mutual objective in order to achieve a common goal. This may have its disadvantages, but the positive consequences certainly outweighs them. Our government has furthermore committed it self to a gradual increase in its ODA, which has resulted in new and exciting projects. We want to believe that we can have a role to play, not least in the fields where we have special knowledge and have excelled. Fisheries being among those.

If I try to specify I would like to mention that some of the areas where Iceland could make a contribution are:

• Training of fishermen, in particular training of trainers. In Namibia for example, Iceland has assisted in the development of a training institute for fishermen, NAMFI in Walvis Bay.
• Quality control of fishery products. To give examples, in a number of African countries Icelandic experts have in the past assisted with the development of legislation in this area, for instance incorporating EU requirements into such legislation. They have also assisted with the organisation of competent authorities, development of inspection methods and procedures.

We will not claim to have solutions to all problems. Far from it. But it is the hope of the Icelandic people however, that we may in some small way assist other countries on their development path in fisheries, basing on our own experience.

I do hope that the discussions and deliberations during the past two days have been informative. We all have a common goal, namely, to make fisheries and aquaculture contribute more to the well being of the people in our countries. To become an engine of growth.

With these few words, I now declare this symposium on International seafood trade; Challenges and opportunities closed.  

Thank you.