Africa, most affected continent, losing some US$11.2 billion in revenue annually

Developing countries are losing US$50 billion, due to illegal, unreported and unregulated (IUU) fishing, a new study by the Financial Transparency Coalition (FTC) has found.

The study reveals that the top 10 companies involved in IUU fishing are responsible for nearly a quarter of all reported cases. The Guardian is reporting that eight of these companies are from China, led by the Nasdaq-listed Pingtan Marine Enterprise.

The other companies are from Colombia and Spain.

The Spanish tuna giant, Albacora SA emerges as Europe’s largest alleged IUU fishing company, claims the report by a coalition of 11 non-profit organisations.

According to Matti Kohonen, one of the report’s authors and the executive director of the FTC, “illegal fishing is a massive industry directly threatening the livelihoods of millions of people across the world, especially [those] living in poor coastal communities in developing countries already affected by the COVID-19 pandemic, the cost-of-living crisis and the impact of climate change”.

Over exploited and depleted fish stock

More than 90 per cent of global fisheries stocks are being fully exploited, overexploited or depleted,  according to the UN. IUU fishing is a major driver of the marine ecosystem’s destruction and accounts for one-fifth of the global fisheries’ catches, worth up to US$23.5 billion (£20 billion) annually, the third most lucrative natural resource crime after timber and mining.

Africa is the most affected continent, losing some US$11.2 billion (£9.76 billion) in revenue annually from IUU fishing while concentrating 48.9 per cent of identified industrial and semi-industrial vessels involved in the practice, the FTC report found.

Of that total, 40 per cent are in west Africa alone, which has become a global epi-centre for IUU fishing. Elsewhere, Argentina loses between US$2 billion to $3.6 billion (£1.74 billion to £3.14 billion) in terms of IUU fishing catch per year, Chile estimates its losses at US$397 million (£346 million) and Indonesia’s are at US$4 billion (£3.49 billion) annually, equivalent to the country’s annual net rubber exports, it concluded.

IUU fishing represents around 20 per cent of the global fish catch, according to a 2013 report by the Pew Trust, thus playing a key role in overfishing. The greatest declines in fish stocks are expected to happen in the coastal regions that are most food insecure and more dependent on artisanal fishing for protein.

More losses for developing countries

In addition to the problems caused by food insecurity, Kohonen said developing countries lose billions of dollars in illicit money flows due to illegal fishing while “vessel owners continue operating with complete impunity, using complex company structures and other schemes to hide their identity and evade prosecution”.

The report warns that almost no countries require information about owners when registering vessels or requesting fishing licences, meaning that those ultimately responsible for these activities are not punished – rather, fines are issued to the captains and crews of the vessels.

It suggests that fishing vessel owners should be required to report the ultimate beneficial ownership when registering a vessel or requesting a license by regional fisheries management organisations, flag states and coastal states.

Collecting such ownership data, the report contends would allow the application of laws to combat money laundering, tax and financial crimes, thus creating ways to tackle the underlying fisheries-related crimes and abuses.

Worldwide, 820 million people rely on fishing for their livelihoods, according to the UN’s Food and Agriculture Organization. In some regions like west Africa, up to a quarter of the workforce are involved in fishing.

Fish consumption also accounts for a sixth of the global population’s intake of animal proteins. Neither Pingtan Marine Enterprise Ltd nor Albacora SA responded to the FTC’s request for comment.

Contacted by The Guardian, Albacora SA denied any involvement in IUU fishing.

According to a spokesman for the company: “IUU fishing is a very grave matter, which this company takes very seriously. We deny any accusations related to this.”