Bridges Weekly Trade News DigestVolume 10Number 1 • 18th January 2006

In Brief


TRADE IN WILD CAVIAR BANNED TO SAVE STURGEON

Legal trade in wild sturgeon caviar among the 169 parties to the UN Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) was suspended on 3 January due to concerns over the impact of trade in the species on its survival. The CITES Secretariat’s decision to stop issuing the certificates required for trade by the agreement was taken in response to concerns that the caviar export quotas proposed by sturgeon-producing states were too high given low fish stocks and the proposed quotas’ failure to take into account the magnitude of illegal fishing.

In 1998, CITES member states decided to place all sturgeon species on Appendix II of the Convention, thus subjecting them to trade controls to help ensure their survival. In deciding to not issue any certificates in 2006 for all beluga sturgeon, including Black Sea and Caspian varieties, the Secretariat effectively shut down all legal trade amongst parties to the Convention. It cited the caviar exporters’ failure to prove that illegal harvesting and trade was not adversely affecting the species and to provide satisfactory information about the management and sustainability of their sturgeon catch as its main reasons for not approving their proposed catch and export quotas. While countries sharing sturgeon stocks agree amongst themselves on these catch and export quotas, they subsequently have to be approved and published by the CITES Secretariat.

CITES also called on importing countries to ensure that border officials demand proper CITES registration and labelling to ensure that imports are from legal sources. Imports of caviar from beluga sturgeon were banned by the US in September 2005 (see BRIDGES Trade BioRes, 10 September 2004). According to some observers, however, this ban has backfired by driving up prices and, in turn, smuggling.

ICTSD reporting; "Ban on trade in wild caviar as sturgeon stocks plunge", THE GUARDIAN, 4 January 2006; "Caviar trade shut down to save sturgeon", NEW YORK TIMES, 4 January 2006; "International caviar trade suspended", WWF INTERNATIONAL, 3 January 2006; "No Legal Caviar Exports This Year," ENVIRONMENTAL NEWS SERVICE, 5 January 2006; "Caviar Smugglers Seen Foiling 2006 Export Rules", REUTERS, 29 December 2005; "Caviar Exporters Urged to Strengthen Controls and Promote Sustainable Fishing", UN ENVIRONMENT PROGRAMME PRESS RELEASE, 3 January 2006; "UN Moves to Block 2006 Caspian Sea Caviar Exports", REUTERS, 4 January 2006.

SAFTA IMPLEMENTATION UNDERWAY; PAKISTAN HESITANT TO RATIFY?

The South Asian Free Trade Agreement (SAFTA), which would cut tariffs on goods trade among seven countries in the region, passed its implementation date on 1 January. However, Pakistani daily Dawn reports that Islamabad appears hesitant to ratify the agreement.

The goods-only trade liberalising deal requires all South Asian Association for Regional Cooperation (SAARC) members to cut tariffs to 0-5 percent by 2013 for developing countries (India, Pakistan and Sri Lanka) and 2016 for least-developed country member states (Bangladesh, Bhutan, the Maldives, and Nepal). Tariff cuts are scheduled to begin on 1 July 2006. While India had initially stated that it would slash import tariffs from SAARC members by 5 percent upon SAFTA’s implementation, it is not clear whether this has been the case.

While the FTA has had a tumultuous past, a 12-13 November 2005 SAARC meeting indicated that member states supported meeting the initial January 2006 implementation date (see BRIDGES Weekly, 16 November 2005).

Pakistan’s perceived reluctance to ratify the FTA has drawn increased media speculation. Some suggest that Pakistan may be unwilling to ratify the agreement on the grounds that its most favoured nation (MFN) clause could pose political problems over the country’s relationship with India. Pakistan has maintained a longstanding position that bilateral trade talks with India should progress in tandem with progress on their bilateral political dispute over Kashmir.

India, Nepal, Bhutan, the Maldives, and Bangladesh have already ratified the agreement. While the Sri Lankan cabinet has also ratified the agreement, some provisions are still awaiting parliamentary approval — this is expected in April 2006.

ICTSD reporting; "SAFTA will enhance welfare for all," THE FINANCIAL EXPRESS, 11 January 2006; "SAFTA comes into effect; Pak yet to ratify," ECONOMIC TIMES, 1 January 2006; "Islamabad may stay out of South Asian Free Trade Area treaty," DAWN, 16 January 2006.

LAST-MINUTE DEAL ON CLIMATE CHANGE STRUCK AT DECEMBER KYOTO MEET

At the first Meeting of the Parties to the Kyoto Protocol (COP/MOP-1) from 28 November to 9 December in Montreal, Canada, governments reached what environmental groups called "a historic agreement" on how to tackle climate change in the future. After working through the night on the last day of the conference, delegates adopted the "Montreal Action Plan" committing industrialised countries to deeper cuts in greenhouse gas emissions, to be agreed by 2012 when the current agreement expires. While the details remain to be hammered out, the agreement was seen as giving new credibility to the Kyoto process. "This is a clear signal that the Kyoto agreement is alive and well," said Friends of the Earth International climate change campaigner Catherine Pearce.

Parties also approved a series of decisions aimed at simplifying the implementation of the global pact, which was adopted in 1997 but only came into force this year. These include the establishment of a Joint Implementation Supervisory Board, a mechanism that allows industrialised countries to earn carbon allowances by investing in low-emission projects in other developed countries they can count against their own reduction commitments. Delegates also finalised details of the Clean Development Mechanism, a system that similarly rewards them for investing in sustainable development projects in developing countries.

ICTSD reporting;"Conference reaches climate deal," TORONTO STAR, 20 December 2005; "Kyoto Protocol extended," GLOBE AND MAIL, 10 December 2005; "Kyoto thrives in Montreal despite last minute game of Russian roulette," FRIENDS OF THE EARTH INTERNATIONAL, 10 December 2005; "Developing countries: pay us to save rainforests," MONGABAY.COM, 27 November 2005; "Montreal climate conference adopts ‘rule book’ of the Kyoto Protocol," UN FRAMEWORK CONVENTION ON CLIMATE CHANGE, 30 November 2005; "U.N. talks adopt Kyoto rules on global warming," REUTERS, 30 November 2005; "Australia says ’son of Kyoto’ deal not possible," REUTERS, 1 December 2005.