Unveiling the Secrets Behind Global Fishing Industry Ownership
Understanding the Global Fishing Fleet Ownership
A recent report from the EqualSea Lab of the University of Santiago de Compostela shines a spotlight on ownership structures within the vast network of industrial fishing fleets. These vessels play a significant role in the global seafood supply, responsible for a staggering 60% of fish landings, while also benefiting from over 80% of government subsidies designed for fisheries. This makes understanding the ownership behind these fleets crucial for effective governance and fair competition.
Hidden Ownership Revealed
The research reveals an alarming trend: almost two-thirds of large-scale fishing (LSF) vessels do not have publicly available ownership data. This lack of transparency raises questions about who truly profits from our oceans. In many cases, the flag state where a vessel is registered does not reflect the true owner. More than one in six vessels are owned in countries separate from their registered flag states, enabling a practice known as beneficial ownership. This technique often involves multiple layers of registered entities and shell companies, making it easier to avoid taxes, reduce costs, or escape regulatory scrutiny.
Impacts on Local Fishing Communities
Philip Chou, a Senior Advisor for Oceana, emphasizes the detrimental impact of this concealed ownership on local fishermen. “The lack of transparency around vessel ownership undermines local fishers’ livelihoods with unfair competition,” he states. The enforcement of laws becomes problematic when ownership data is hidden, resulting in crew members facing penalties while the actual owners remain unscathed.
Regulatory Challenges Faced by Flag States
Many flag states, which are the countries that register these vessels, do not require the disclosure of beneficial ownership information at registration. This anonymity hampers their ability to enforce regulations and hold owner entities accountable for illicit activities.
Calls for Transparency and Accountability
Maisie Pigeon, the Director for the Coalition for Fisheries Transparency (CFT), argues that large fishing operations should adhere to the same transparency standards reflected in other industries. “Without knowing who controls these significant fleets, stopping illegal fishing and ensuring equitable access to fishing rights remains a daunting challenge,” she mentions. The need for immediate transparency measures is paramount to enhance governance and accountability in the fishing sector.
Common Registries and International Efforts
The report identifies several popular registry countries employed by foreign firms to flag their vessels, notably Panama, Belize, and Honduras. At a recent ocean conference, Panama’s government expressed intentions to improve data accuracy regarding fishing vessel ownership, including beneficial ownership. However, there was no commitment to make this information public—a vital component of the CFT’s Global Transparency Charter, which outlines essential principles to boost transparency in fisheries.
Oceana’s Recommendations
Oceana advocates for flag states to mandate the disclosure of beneficial ownership information at registration, along with pushing for public sharing of such data. This initiative would play a crucial role in curbing illegal fishing practices and regulating the industry more effectively.
Conclusion
As Oceana works tirelessly to secure the oceans’ health, their focus on ensuring clear ownership within industrial fishing fleets stands out as a critical factor in this endeavor. By advocating for greater transparency and holding those responsible for illegal activities accountable, we can work towards a future where marine resources are managed sustainably for generations to come. To learn more about Oceana's continued efforts in ocean conservation and responsible fisheries management, visit their website.
Frequently Asked Questions
What are industrial fishing fleets?
Industrial fishing fleets refer to large-scale fishing operations that utilize advanced technologies and vessels to harvest seafood on a commercial scale, significantly impacting global fish stocks.
Why is ownership transparency important in fisheries?
Ownership transparency ensures accountability for fishing practices, prevents illegal fishing, and supports fair competition among local fishers, essential for sustainable management of marine resources.
What is beneficial ownership?
Beneficial ownership is a legal acknowledgment of the actual owner of a company or asset, often obscured by layers of corporate structures that can hide the true entity controlling the vessel.
How can flag states enhance their regulatory practices?
Flag states can improve regulations by requiring the disclosure of beneficial ownership during vessel registration, holding owners accountable, and enhancing law enforcement capabilities.
What is Oceana doing to support ocean conservation?
Oceana promotes science-based policies for sustainable fisheries management, advocating for transparency in ownership and practices, and working to protect marine biodiversity.
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