Argentine government analyses the implementation of measures related to fishing in Falkland Islands. (Photo: Colto/FIS)

Argentina’s next actions may impact fisheries beyond Falklands

ARGENTINA
Tuesday, June 26, 2012, 07:30 (GMT + 9)

It is clear and undoubtable that Argentina has taken a more robust and active attitude with respect to its claim for sovereignty over the Falkland Islands and the adjacent South Atlantic zone, comprising Georgia and the Sandwich Islands, which remains under the FIFD's exclusive management.

Recently, an Argentine commercial featuring an athlete who trained on the islands has drawn the international media’s attention and apart from generating some complaints from various sports organizations in the UK, in just a few days it led to the broadcast of another commercial in response to the former. At a first glance it appears to be a typical dispute between rivaled football fans, however, it has a significant background and for the first time, an unresolved conflict that generated a war exactly 30 years ago has been made public.

In recent months, Argentina has been gathering further support from neighbouring countries to take practical measures against maritime and logistical activities that affect the economy, tourism and oil exploration in the area corresponding to the islands. Obviously, there's a follow-up of companies, partners, shareholders, directors, investors, banks and institutions directly or indirectly involved in the activities that Argentina and its partners intend to undermine and destabilize, in order to force the British government to sit down and discuss the claims, as the various UN resolutions have determined.

The British Government, on the other hand, reported that a referendum will be called in 2013 for the inhabitants of the islands to define their position, which will certainly be to continue as part of the UK. And campaigns have been initiated in some journalistic media to gather support so that the British Parliament deals with some economic issues in response to measures taken by Argentina.

The fact is that so far the Argentine government has taken no action with respect to fisheries, but there are strong rumors in Buenos Aires on certain measures, the implementation of which are being studied. One of them might be granting fishing licenses in the conflict zone to fishing vessels from third countries. This measure will involve an "overlap" with what the FIFD has been doing and which represents the main source of income that the Government of the Falklands has received for 30 years.

But there are countries that support Argentina's position at the UN, as is the case of Russia and China, and the possible entry of fishing vessels with those flags would mean a full u-turn from the situation the islanders and their current partners have enjoyed. Needless to say, these countries are privileged members of the UN, and therefore, if they perform fishing activities in the area with Argentinean permits, it would be very interesting to see what the reaction of the United Kingdom would be.

Sending Royal Navy vessels to the area to stop a helpless Russian or Chinese flagged fishing vessel would turn the UK into an "aggressor" and it would also force the British diplomacy not only to talk with Argentina but with other politically relevant countries. These alternatives would provide a major shift in the fishing and political situation beyond the Falklands, since resources and important areas are at stake.

Some striking and contradictory issues between politics and business are the ships belonging to countries that politically support Argentina's position but purchase their fishing licenses from the FIFD, as is the case of Spain, Chile and others.

This could eventually open the door for Argentina at some point to claim that ship owners should pay a fee for the captured volumes during recent years, since they have already been paid in full to the FIFD and nothing has been paid to Argentina. Since we are talking about a very large amount of money, given permits, inspection services and transhipment fees that have been paid to the sum of USD 1,500 million since the 80's to date, any Argentinean claim could cause serious economic and legal problems to important groups operating under the scheme of joint ventures, or simply buying permits in the area, like Grupo Pescanova (Belnova, Austral Fisheries and Pesca Chile), Grupo Nores (Nores Marine and Byron Fishing), Group Copemar , Varepi, Pesquera Guromar, Grupo Regal and others.

All in all, this is a very special international situation that may affect the economy of the islands and the future of some companies and species such as the Illex squid, the loligo fish and the Patagonian toothfish (Chilean sea bass). This will surely produce political decisions from both parties that will affect fisheries throughout the region and the participation of groups like COLTO or CCAMLR, among others.

By Andres Loubet-Jambert
FIS Co-Founder - Publisher
editorial@fis.com
www.fis.com

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