Explanatory Memorandum to COM(2023)218 - Signing and provisional application of a Sustainable fisheries agreement with Madagascar and the Implementing Protocol thereto (2023-2027)

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

A Fisheries Partnership Agreement between the European Union and the Republic of Madagascar was signed on 19 December 2007 and has been provisionally applied since 1 January 2007. It is tacitly renewable for periods of 6 years from its entry into force.

The last Implementing Protocol to this Partnership Agreement was signed on 23 December 2014 and applied from 1 January 2015 until 31 December 2018, when it expired.

On the basis of the relevant negotiating directives1, the Commission conducted negotiations with Madagascar on concluding a new Sustainable Fisheries Partnership Agreement (SFPA) between the European Union and Madagascar, including a new Implementing Protocol to that Agreement. The objective is to allow Union vessels to access Madagascar’s fishing zone and to fish for tuna and associated species there, under the management mandate of the Indian Ocean Tuna Commission (IOTC). Following these negotiations, a new text of the Agreement and a new text of the Implementing Protocol were signed on 28 October 2022.

The new Agreement repeals and replaces the existing Agreement. It covers a period of 4 years from the date of provisional application laid down in Article 19 thereof, namely 1 July 2023, subject to signature by the Parties, or the date of such signature if it is signed after 1 July 2023.

The new Protocol covers a period of 4 years from the date of provisional application laid down in Article 19 thereof, in accordance with the same provisions as the Agreement.

The purpose of the proposal is to authorise the signing and provisional application of the Agreement and its Implementing Protocol.

Consistency with existing provisions in the policy area

The main aim of the new SFPA is to provide an updated framework that takes into account the priorities of the reformed common fisheries policy and its external dimension. This will help maintain and strengthen the strategic partnership between the European Union and Madagascar. The new SFPA will enable them to work more closely together to promote a sustainable fisheries policy, in line with the objective of conserving marine biological resources, as recognised by EU law, and responsible exploitation of fishery resources in Malagasy waters. It will also support the development of a sustainable ocean economy, in the interest of both Parties. This cooperation will also contribute to decent working conditions in the fisheries sector.

The new Protocol provides for fishing opportunities for Union vessels in Madagascar’s waters, where applicable within the limits of the available surplus. It is based on the best available scientific advice and on recommendations made by the IOTC, which is the regional fisheries management organisation responsible for the management of highly migratory fish stocks, whose decisions are fully applicable, as stated in the Agreement (Article 4(3)). The management measures adopted by the IOTC are also included in the relevant provisions of the common fisheries policy applicable to the IOTC area, in particular those of the Annual Fishing Opportunities Regulation2.

The Commission has based its position in part on the results of an evaluation of the previous Protocol (2015-2018) and a forward-looking assessment of whether a new Protocol should be concluded. Both were carried out by external experts.

The Protocol provides for the following fishing opportunities for highly migratory fish:

- 32 tuna seiners,

- 13 surface longliners with a tonnage greater than 100 GT,

- 20 surface longliners with a tonnage less than or equal to 100 GT,

- and support vessels in accordance with the relevant IOTC resolutions.

Consistency with other Union policies

The negotiation of a new SFPA forms part of the EU’s external action in relation to African, Caribbean and Pacific (ACP) countries and takes into account, in particular, the EU’s objectives on respecting democratic principles and human rights.

The Union and Madagascar are also parties to the Interim Agreement signed on 29 August 2009 establishing a framework for an Economic Partnership Agreement (EPA) between the Eastern and Southern Africa States, on the one part, and the European Union and its Member States, on the other part. The negotiations for a new SFPA are in line with the EPA, which provides for cooperation between the Parties in fisheries trade and development covering marine fisheries, inland fisheries and aquaculture.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The legal basis is Article 43(2) TFEU, which establishes the common fisheries policy, and Article 218(5) TFEU, which provides that the Council, following a proposal by the negotiator, must adopt a decision authorising the signing of the Agreement between the EU and third countries and, if necessary, its provisional application before its entry into force.

Article 17(1) of the Treaty on European Union lays down that, with the exception of the common foreign and security policy, the Commission is to ensure the Union’s external representation. Consequently, officials designated by the Commission have sole competence for signing an agreement between the EU and a third country.

Subsidiarity (for non-exclusive competence)

The proposal falls under the exclusive competence of the European Union pursuant to Article 3(1)(d) TFEU.

Proportionality

The proposal is proportionate to the objective of establishing a legal, environmental, economic and social governance framework for fishing activities carried out by EU vessels in third-country waters, as set out in Article 31 of the Regulation (EU) No 1380/2013 establishing the common fisheries policy. It complies with those provisions as well as with those on financial assistance to third countries laid down in Article 32 of that Regulation.

3. RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex post evaluations / fitness checks of existing legislation

In 2017 the Commission carried out an ex post evaluation of the 2015-2018 Protocol to the Fisheries Partnership Agreement with Madagascar and an ex ante evaluation of a possible new Protocol3.

The ex post evaluation of the 2015-2018 Protocol concluded that it complemented the other access arrangements established in the region, allowing EU vessels to optimise exploitation of migratory stocks within the regional rules set by the Indian Ocean Tuna Commission. The Protocol was considered relevant to the needs of EU stakeholders as it provided operators of EU vessels with predictable access to a fishing area of interest where targeted species are abundant. Access to Madagascar’s waters provides the EU longline fleet based in Réunion with opportunities to extend fishing areas to the neighbouring waters of this outermost region. The activities of the EU tuna fleet in Madagascar’s waters and in the wider Indian Ocean have generated substantial socio-economic benefits for Madagascar, which has used its local processing capacity to capture some of the added value, and the EU financial contribution has been broadly aligned with the fishing opportunities exploited.

As regards sectoral support, the evaluation noted that the implementation of the programme had been satisfactory, with a good mid-term disbursement rate, and that a future sectoral support programme should focus on strengthening monitoring, control and surveillance capacity, health inspection capacity to preserve export capacity, and support for vocational training of sailors. A future sectoral support programme could also help develop the national fisheries sector by supporting small-scale fishers and maintaining good coordination with activities financed by other funding providers. The evaluation recommended earmarking part of the funding available for the recruitment of an external technical assistant to coordinate and facilitate the implementation of the sectoral support programme.

It is important for the EU to maintain an instrument allowing for close sectoral cooperation with a country that is a major partner, a supplier of fishery products to the EU and a stakeholder on the international stage and that has fishing grounds of interest to the EU fleet.

Stakeholder consultations

As part of the above-mentioned evaluation, the Commission consulted the Member States, industry representatives and international civil society organisations, as well as Madagascar’s fisheries administration and civil society. Consultations also took place within the Long Distance Fisheries Advisory Council. These consultations led to the conclusion that it is in the interest of the European Union and Madagascar to maintain an instrument allowing for in-depth sectoral cooperation, with multiannual funding possibilities for Madagascar. It is in the interest of EU vessel owners to maintain access to an important fishing zone by means of a fisheries agreement. Since the 2018 evaluation, the fishing industry has confirmed its continued interest at the meetings of the Long Distance Fisheries Advisory Council.

Collection and use of expertise

The Commission used an independent consultant for the ex post and ex ante evaluations, in accordance with the provisions of Article 31(10) of Regulation (EU) No 1380/2013 establishing the common fisheries policy.

Impact assessment

1.

Not applicable


Regulatory fitness and simplification

2.

Not applicable


Fundamental rights

The negotiated agreement includes a clause on the consequences of violating the essential elements regarding human rights laid down in Article 9 of the Cotonou Agreement, or the corresponding article of any successor agreement.

4. BUDGETARY IMPLICATIONS

The annual financial contribution is EUR 1 800 000, based on:

(a) a reference tonnage of 14 000 tonnes, for which an annual amount linked to access has been set at EUR 700 000;

(b) support for developing Madagascar’s sectoral fisheries policy, amounting to EUR 1 100 000 per year.

This support meets the objectives of cooperation in the fields of sustainable exploitation of fishery resources, aquaculture, sustainable development of the oceans, protection of the marine environment, and the blue economy.

The annual amount for commitment and payment appropriations is established during the annual budgetary procedure, including for the reserve line for protocols not yet having entered into force at the beginning of the year4.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The monitoring arrangements are provided for in the Fisheries Partnership Agreement and its Implementing Protocol.