Economy Report Canada

______

2008/MRCWG/025

Agenda Item: 1

Economy Report – Canada

Purpose: Information

Submitted by: Canada

/ 21st Marine Resource Conservation Working Group MeetingPiura, Peru
14–18 April 2008

1

ECONOMY REPORT – CANADA

21ST MEETING – MARINE RESOURCE CONSERVATION WORKING GROUP

19th MEETING – FISHERIES WORKING GROUP

April 14-18, 2008, Piura, Peru

Introduction

This has been another extremely busy year for Canada with a number of important domestic and international developments and meetings occurring. Advancing sustainable oceans and fisheries management at home and strengthening international governance continue to be priorities for the Government of Canada. The framework used in the Bali Plan of Action (BPA) provides a practical, integrated approach in order to advance progress domestically, regionally and internationally. For this reason Canada has chosen to use the BPA framework for its economy report.

As a primary sponsor of the APEC Bali Plan of Action stock-take project, Canada is pleased to see significant progress in ensuring a successful and informative stock-take. Most APEC economies and a number of international organizations have returned detailed surveys that are currently being analyzed by expert consultants who are reporting on their interim analysis at the 2008 FWG and MRCWG meetings.

In November 2007, a workshop was held in Manado, Indonesia on the Bali Plan of Action and its implementation throughout the Asia-Pacific. The workshop was attended by government officials of APEC economies, international government organizations, as well as non-governmental organizations. It was an excellent opportunity to learn about the work being done to secure BPA outcomes by other Economies as well as forge new partnerships. The final workshop report has been sent out to both working groups and the outcomes will be discussed at our meetings.

UnderstandingOceans, Seas and Coasts

This last year Canada has been particularly active in helping to define a methodology for identifying the major bio-regions of the world’s oceans. This represents an important first step in understanding the major marine ecosystems. In addition to identification of these large scale ecosystems, Canada has also helped develop a set of criteria for identifying more specific areas of ecological and biological significance. The combination of identifying large scale bioregions and specific areas of significance requiring special consideration, represents an important foundation for managing international marine areas.

In addition, Canada is active in the initial phase of GRAME, the Global Reporting and Assessment of the status of the Marine Environment. The first phase of this assessment process is to gather an inventory of existing assessments, develop assessment templates, and regional and thematic summaries. This initial phase is almost complete.

DFO also developed its Five-Year Research Agenda (2007 – 2012) which includes a number of priority areas that focus on environmental sustainability, aquatic animal health, invasive species and ecosystem assessment. This targeted approach will increase our understanding and support for informed management decisions.

Managing the Marine Environment Sustainably

Ecosystem-Based Management

The 2007 Government of Canada Budget reflected a commitment to the health of our oceans, and the Canadian government is investing $61.5 million over five years for 22 new federal oceans initiatives. This will allow real progress for Canada in protecting the most sensitive areas of our oceans, closer cooperation with international partners, increased scientific investment, improve our surveillance and enforcement measures, and detecting and mitigating marine pollution. It will also allow the establishment of four new Oceans Centres of Expertise. These centres will focus on: better protecting Canada’s deep-sea coral and sponges; improved reporting on the health of our oceans; incorporating greater traditional knowledge in oceans management; and advancing ecosystem-based management approaches in coastal areas.

Canada’s efforts to protect vulnerable marine ecosystems extendto the high seas as well. At its annual meeting in September 2007, the Northwest Atlantic Fisheries Organization (NAFO) agreed to Canada’s proposal for a coral protection zone off the Grand Banks that requires the immediate closure to all bottom contact fishing for the next five years. Scientists will use this time to gather data on corals and other marine habitat in the area to determine long-term protection strategies. A special meeting of NAFO in May 2008 will also be held to determine other measures that the organization can take to protect vulnerable marine ecosystems in the Northwest Atlantic.

Marine Pollution

In addition, to the efforts mentioned above Canada has been active in a regional and global context to address marine pollution. Canada is co-leading an Arctic Council project to revise and update a regional programme of action to address land-based sources of marine pollution. We have also actively engaged in the last consultative meeting of the ‘London Dumping’ Convention. At this meeting we led the development of a compliance mechanism, contributed to developing protocols for the safe storage of carbon dioxide in sub-seabed geological formation, we proposed and obtained agreement to develop measures to address transboundary movement of CO2, and we proposed and obtained agreement on scientific and legal analysis necessary for the regulation of ocean fertilization.

Marine Invasive Species

Canada has also been promoting standards to address marine invasive species. Domestically, there are research groups and policy working groups that have been struck to tackle the problem of invasive species. Of note Canada has established a Center for Aquatic Invasive Species Risk Assessment (CEARA), which is developing methodology and conducting risk assessments on high priority species and pathways. This past year,CEARA conducted risk assessments on 5 species of tunicates, green crab, Chinese mitten crab and several species of spiny-rayed fish.Canada has also established an Aquatic Invasive Species Network to conduct cooperative research and includes scientists and students from several universities and DFO laboratories. With respect to legislative tools,amendments to the federal Fisheries Act were introduced that will provide the Minister with the powers to regulate (import, movement and control) invasive species in Canada.

Canada co-chairs, along with Russia,the PICES (North Pacific Marine Science Organization) Working Group 21 (WG-21) on Marine Non-indigenous Species.WG-21 also includes representatives fromJapan, China, Korea and the United States. With funding from Government of Japan, WG-21is developing a database that will contain distributional, ecological and taxonomic information on aquatic invasive species from the North Pacific. WG-21 members met March 2-3, 2008 in Busan, Korea to beta-test the database developed by the United States Geological Service and Environmental Protection Agency. The long-term goal of this project is to provide member-countries with web access to comprehensive information on marine non-indigenous species. WG-21 will also be undertaking rapidassessment surveys’ of marine non-indigenous species in each PICES member country.

Coral Reefs and other Vulnerable Areas

In addition to the science work mentioned above related to identifying areas requiring special consideration and management, Canada has been very active over the last year in helping to develop policy guidance on how fishing activity could avoid serious adverse impact to vulnerable marine ecosystems, including corals. Canada was closely involved in both the expert consultations and first half of the technical consultations for the FAO guidelines for deep sea fishing. The technical consultations have not concluded, but once complete the FAO guidelines will represent the new global norm for taking a precautionary approach to deep sea fisheries. Canada has also been working hard in the regional context by inputting into the developing standards of the new South Pacific RFMO for managing vulnerable areas, and in developing proposals for NAFO. Building on seamount closures and the designation of a coral protection zone, Canada is developing proposals for the NAFO Regulatory Area that include precautionary measures for a deep sea management area, and other interim standards for encounters of corals, data collection, an exploratory fisheries policy, and impact assessment process, etc. All intended to improve how we manage vulnerable areas.

Managing living resources sustainably

International Governance Strategy

Canada/DFO’s International Governance Strategy, which follows a similar structure to the BPA, was renewed this year. This will help guide us as we participate in international events aimed at strengthening international governance of oceans and fisheries.

Recognizing that global solutions require the effective engagement of the full range of States,Canada provided $500,000 to the UN Fish Stocks Agreement Part VII Assistance Fund. This funding is designed to help developing countries build their enforcement capacity, undertake scientific research, and more actively participate in meetings and activities of regional fisheries management organizations.

Sharing knowledge and building capacity is a key part of improving international governance, Canada hosted the 5th International Fisheries Observer Conference in Victoria for individuals and organizations involved in fisheries monitoring, control and surveillance to share best practices, discuss emerging issues, and identify opportunities for future collaboration.

How we manage our resources regionally, using regional bodies is fundamental for ensuring resource sustainability. In August 2007, an independent panel that was commissioned following recommendations from the High Seas Task Force released the Model RFMO Report: Recommended Best Practices for Regional Fisheries Management Organizations. Recognizing the important role RFMOs play in international fisheries governance, Canada was proud to be the main financial supporter of this initiative.

The Model RFMO report complements ongoing work by Canada to encourage performance reviews of all RFMOs and strengthen their performance. Canada played an important role in securing cooperation from members of NAFO to adopt needed changes to the NAFO Convention. Canada is also participating in meetings to establish a new South Pacific RFMO.

To help enhance bilateral cooperation, Canada signed two Memoranda of Understanding related to fisheries cooperation: one with Russia and another with Spain.

Improving behaviour on the high seas is founded on ensuring flag states meet their responsibilities. It is in this context that Canada hosted an experts workshop on flag State responsibilities in Vancouver, British Columbia (March 2008). This workshop was the result of discussions at the FAO-COFI meeting held in March 2007, in which members called for the FAO do develop guidelines outlining actions that may be taken when flag States do not meet their obligations under international law. The outcomes of the workshop will hopefully provide valuable input to the FAO expert consultation, which will be held at a later date.

Sustainable Fisheries and Aquaculture Management

In November 2007, a new Bill was introduced to modernize Canada’s Fisheries Act. The Bill aims to provide a more predictable, stable and transparent fisheries and fish habitat management system where fish harvesters, and others with an interest in the fisheries, can share in the management of this important public resource.

In the last year, DFO also developed a new Resource Management Sustainable Development Framework that will help ensure a rules-based approach to decision-making that is more transparent, rigorous and systematic.
The Framework introduces new fisheries management policies and tools that include the following:

• A Fisheries Checklist to help DFO demonstrate progress towards sustainability and to report externally on performance and progress towards sustainable management of fisheries;
• A fishery decision-making framework for establishing harvest strategies which incorporates a precautionary approach;
• A policy to manage the impacts of fishing on sensitive benthic Areas
• A policy to help guide decisions regarding fisheries for forage species; and
• A renewed Integrated Fishery Management Plan template to help implement these existing and new considerations.

A new aquaculture regulatory science program within DFO Science is currently being developed to address aquaculture environmental interactions including habitat and fish communities.

With respect to international cooperation, Canada and Chile recently signed a Memorandum of Understanding regarding aquaculture cooperation. Canada is supporting the development of the Aquaculture Network for the Americas, which will help enable sustainable aquaculture development in the Asia-Pacific region.

Finally, Canada is contributing CDN $50,000 to the FAO Small-Scale Fisheries Conference taking place in Bangkok, Thailand in October 2008.

Providing for sustainable economic benefits from the oceans

Maximize Value from Use, Production and Harvesting

In the last year, a series of measures were announced to address challenges facing the Canadian fishing industry, including introduction of an integrated Ocean to Plate approach to fisheries management decision-making.

The vision of the Ocean to Plate approach is a seafood sector in which all stakeholders, including government agencies and those involved in all levels of the seafood value chain, are working towards a common goal of a sustainable, economically viable and internationally competitive industry.

In 2008, DFO has been focusing on industry rationalization and restructuring; working with recognized financial institutions to facilitate better access to capital for fish harvesters; a licence policy review and consolidation process; a licence fee review; and working on a strategy for DFO to be able to respond to increased requests from MSC and other certification bodies.

DFO is working with other departments and agencies on: food safety, quality, tracking and traceability, and development of technology innovation and seafood marketing.

Trade Facilitation and Market Access

Canada has remained fully engaged in all WTO DOHA negotiations and discussions, and continues to support a practical and enforceable outcome.

The Government of Canada through the South East Asia Regional Program at the Canadian International Development Agency continued its support under the APEC-WTO Capacity Building Initiative Economic Integration Program to help build the capacity of government agencies and departments in four APEC economies in Southeast Asia (i.e., Vietnam, Thailand, Indonesia and the Philippines) to function effectively in WTO fora, to meet their obligations under WTO agreements, and to facilitate regional and global trading relations. This assistance is generic and not limited to any one particular sector. The project also supports Cambodia and Laos, which are not APEC members, in their WTO negotiations.

Canada is currently negotiating free-trade agreements with two APEC economies (Singapore and Korea) and will be seeking further free trade agreements in the region given the importance of this market.

Sustainable development of coastal communities

Canada continues our multilateral efforts related to early warning systems, including tsunami warning, through the Intergovernmental Oceanographic Commission (IOC), and emergency preparedness. This includes the existing Pacific systems, the developing Atlantic system and capacity building programs in the Indian Ocean.

In addition, Canada through its work with ASEAN has been promoting disaster risk reduction measures with APEC countries. Work is also being undertaken to improve the ability of disaster management bodies to prevent and reduce the impact of disasters.

Canada is supportingIndonesia in the protection and creation of sustainable livelihoods through equitable access to and sustainable management of natural resources in TominiBay, on the island of Sulawesi.

Conclusion

In conclusion, many of our domestic and international efforts are directly or indirectly supportive of the objectives of the Bali Plan of Action. The BPA offers us an excellent integrated agenda and Canada has used the BPA as a model in defining our working framework. In moving forward, Canada has and will continue to internalize the overall goals and objectives of the BPA and APEC.