Certifying Quality and Sustainability in the Collection, Culture and Commerce of Marine Ornamentals

4-8-00 Prepared by Paul Holthus, Executive Director, Marine Aquarium Council

Marine aquarium industry collects and exports reef organisms from most coral reef areas.

Primary exporters: Indonesia, Philippines, Sri Lanka, Fiji.

Smaller amounts come from: other Pacific Islands, East Africa, Indian Ocean, Red Sea, Caribbean, and the US (Hawaii, Florida).

Primary products: fish, corals, soft corals and "live rock" (4-7 lb pieces of reef).

Primarily importers: US, EU, Japan.

Captive breeding of reef organisms (aquaculture) is only 2-5 % of the market, and is growing very slowly due to biological and technical constraints to production.

Significant captive breeding of these products in export or import countries will not be significant in the near-to-medium term, if ever.

Collecting and exporting marine aquarium organisms in developing countries creates jobs and income in rural low-income coastal areas that have limited resources and economic options, e.g. an estimated 7,000 collectors in the Philippines.

Aquarium animals are the highest value-added product possible to harvest sustainably from coral reefs.

Collectors of marine ornamentals, and their communities, often become active reef stewards - guarding these valuable resources against destructive uses and often creating de facto management or conservation areas.

Many in the industry already operate based on "best practice" to ensure quality and sustainability (i.e. minimal loses) and have records to prove it.

Impartial studies conclude: "in comparison to other extractive and destructive impacts on coral reefs,… the effects of collecting live coral for the aquarium trade are very small "and that the global coral trade has "little long term impact."

Some industry operators use destructive collecting practices and/or have poor husbandry and handling practices, resulting in unnecessary mortality and reef degradation.

There is little or no reliable information on amounts, kinds and trends in the collection and trade of marine ornamentals.

There is little or no reliable data on the amount, distribution and status of harvested stocks and reef habitat where harvesting occurs.

Government human and financial resources to actively manage coral reefs and enforce laws against destructive fishing practices are very limited.

There are no international industry standards regarding health reefs and stocks that are harvested, collection practices, or the holding, husbandry and transport of marine aquarium animals.

There is no system to identify quality products and use of sustainable practices that would allow consumers to reward these in their purchasing choice.

Most aquarium hobbyists want to support an industry that produces quality products using sustainable practices - both for ethical/environmental reasons and for personal reasons (i.e. these products are better value - they are healthier and live longer).

Responsible aquarium industry operators want minimal mortality, healthy animals and healthy bottom line (there is no profit in a dead fish), a sustainable supply (i.e. healthy, productive reefs) and standards that codify "best practice" and create a "level the playing field".

Conservation organizations want a sustainable, environmentally sound trade that provides incentives for reef stewardship, conservation and management.

Governments and coastal communities in export countries want a sustainable, environmentally sound trade that provides jobs and support for reef stewardship, conservation and management.

Governments in import countries want to their consumers, policies and legislation to support a sustainable, environmentally sound trade that provides incentives for reef stewardship, conservation and management.

The demand from informed consumers for quality products and practices creates an incentive for industry to adopt and adhere to standards - at no cost to governments.

Certification and labeling are the most useful means to ensure that the market requires quality products and sustainable practices, especially for industries and markets that are diverse and international.

The most valid and credible certification is developed though an institution and process that are independent, international, and is recognized by/involves all key stakeholders.

This kind of "third-party" certification institution/process developed international standards, accredit those who certify compliance, label the outputs, and raise awareness, demand, and confidence among the industry and consumers.

The Marine Aquarium Council (MAC) was been established in 1998 as an international non-profit with a conservation mission and its headquarters in Hawaii.

MAC brings together environment organizations, consumers, government agencies, the entire industry and others to develop 3^rd party standards, certification and labeling.

The MAC Board of Directors is required to have a majority of conservation/public interest representatives.

On the conservation side, the MAC Board includes the world's leading conservation organizations (e.g. IUCN, WWF, TNC), developing country conservation groups (IMA-Philippines, Indonesia Ecolabeling Institute), and the US public aquarium association (AZA).

On the industry side, the Board includes the export associations of Indonesia and the Philippines, the US pet trade association (PIJAC), and the 2 largest international aquarium trade associations.

Certification will create credible, international, multi-stakeholder standards of practice where none exist.

The standards will be based on what industry, conservation, consumers and government - if it chooses to participate - agree is needed for the trade to be responsible and sustainable.

Certification and labeling will create market incentives for industry to comply with standards of practice by allowing consumers to vote with their dollars.

Certification will allow the industry and market to reject unsustainable, sub-standard practices and products.

Sub-standard operators will be forced by the market to either adjust their practices "upward" or lose market support and leave the trade.

Certification will require proof of compliance with domestic law, e.g. no destructive fishing practices, and with international law, e.g. CITES permit conditions.

Certification will require, among other things:

Monitoring of reefs and stocks for compliance with sustainability standards.

Industry documentation of compliance with standards and providing data to an international trade information system.

Management plans and conservation areas for harvested reefs.

This means the industry will be required to support monitoring, documentation and conservation and management of reefs as the way it does business - i.e. sustainable self-financing of reef conservation.

On the other hand, developing countries with most reefs - and even developed countries - do not have enough funds to create, implement and enforce enough laws and management plans to protect all reefs all the time.

Coastal communities with incentives to manage and conserve reefs are the only hope for widespread, ongoing, effective and financially sustainable reef conservation and management.

Coastal communities involved in the aquarium trade will be guardians, stewards and enforcers of management and conservation, often in remote areas rarely visited by government.

By following WTO guidance, the 3^rd party standards and certification system can ensure that WTO concerns about "technical barriers to trade" in "non-tariff measures" are addressed.

The standards and the certification system will:

Be transparent in their preparation, adoption and application.

Afford opportunities for participation in their preparation by interested parties from all affected and interested countries and stakeholders.

Be non-discriminatory and non-arbitrary; i.e. not discriminate between home-produced goods and imports nor imports from or exports to different trading partners.

Not affect secure and predictable market access, not distort competition or consumer choice, not affect producer access to the full range of market opportunities.

Be voluntary and applied in a non-discriminatory and non-arbitrary manner by a credible, independent, international, 3^rd party standards-setting multi-stakeholder institution relevant to the trade in non-food coral reef species.

Ensure international comparability and equivalency of the standards and certification.

Include access to assistance for technical support, training, and assessment.

MAC has made a consistent good faith effort for constructive interaction with the USCRTF.

MAC has made interventions and presentations at USCRTF meetings in March 99, Nov 99, and March 2000 and at the USFWS public hearing in December 1999.

MAC proposed and held meetings/briefings with USCRTF Trade sub-group in April 99, Nov 99, and March 2000, and the State Dept information aquarium trade briefing in Sept 99.

MAC has held numerous meetings and conference calls with key individuals from the USCRTF Trade sub-group.

MAC provided substantial written input to the USCRTF in June 1999 and December 1999.

US Fish and Wildlife Service published a Federal Register call for public input on the trade in coral reef ornamental species, particularly to consider whether additional legislation is needed and what this might address.

The overwhelming majority of submissions to the government in Dec 99 - 50 of the 58 - centered on the need for government to work with the industry and other stakeholders to achieve sustainability and provide incentives for reef stewardship.

The majority submissions stressed that 3^rd party certification and government enforcement of existing legislation play key roles.

The remaining 8 submissions advocated an increased government role, e.g. encouraging aquaculture, and also supported working with the industry and consumers to create incentives and standards so that hobbyists could knowingly support sustainable practices.

Only 3 or 4 respondents strongly urged stricter government control, but also acknowledged the need to work with the hobby and industry.

In spite of the overwhelming public sentiment against legislation, the USCRTF Trade Sub-Group has prepared a legislative concept and is now drafting legislation.

Unilaterally prohibits the domestic harvest and the import or export of CITES listed species (i.e. most stony corals, live rock, giant clams), without provisions for stakeholder input.

Secretary may extend this prohibition to any other coral reef species (including fish) if trade etc. in that species is determined to threaten its sustainability - or that of reefs.

Secretary may allow the domestic harvest and the import or export a prohibited species, if found to not to be a risk to the sustainability of that species - or of reefs

Secretary will work with stakeholders to develop criteria for transportation and handling of coral reef species that ensure survival in captivity.

Prohibits, after a certain time, the domestic harvest and the import of coral reef species not certified to have been collected using non-destructive practices, as verified by industry.

Secretary will work with stakeholders to develop criteria and a strategy for the conservation and sustainable management of coral reef ecosystems in the US.

Secretary will include provisions to encourage developing criteria and a strategy for the conservation and sustainable management of coral reef ecosystems outside the US, such as through multilateral negotiations, technical assistance and capacity building.

The legislation will include appropriations.

The major players, and a critical mass, of the aquarium industry are now at the MAC multi-stakeholder table and are committing to conservation-based certification.

The legislation, particularly an up-front ban of CITES species (and the option for government to add any other reef species), will primarily impact US industry and consumers, i.e. those most influential in reforming the trade, most engaged in MAC, and most susceptible to pressure from conservation groups.

The legislation may drive some industry away from the table with MAC, it may drive some to get whatever products they can by destructive methods before the ban comes into effect, and it may drive some out of business.

This will have a domino effect, reducing the number of exporters and collectors in developing countries.

This will reduce the ability for certification to achieve the economic and environmental benefits of a sustainable trade and self-financing conservation.

The loss of a viable, sustainable industry in rural, coastal communities in developing countries will eliminate jobs and lead to increased environmental degradation - counter to US international policy.

Eliminating the aquarium trade will:

Eliminate the stewardship incentive and open these reef areas to more destructive uses, i.e. a net negative impact on coral reefs.

Eliminate the community's high value-added aquarium fishery, thereby contributing to the poverty and poverty-driven use of destructive fishing practices for food by the community.

Eliminate economic options where there are few, and contribute to the out-migration from rural coastal areas to over-populated urban areas.

The proposed unilateral government development and application of criteria for sustainability will very likely be challenged as technical barrier to trade (TBT).

Even if the criteria were developed in consultation with other stakeholders in the US, they would not afford opportunities for participation by interested parties from all affected and interested countries, and would therefore be considered discriminatory.

The criteria would not be developed and applied in the manner counseled by the WTO for avoiding TBT in non tariff measures, i.e. through a credible, international, 3^rd party standards-setting multi-stakeholder institution relevant to the trade - providing for international comparability and equivalency and a non-discriminatory and non-arbitrary system.

No Scientific Basis: There is little or no reliable information on amounts, kinds and trends in the collection and trade of marine ornamentals and little or no reliable data on the amount, distribution and status of harvested stocks and reef habitat where harvesting occurs - therefore no scientific basis for assuming unsustainability and a need to restrict trade.

Coverage: only the US market will be significantly affected by the legislation, meaning the demand will continue from other importing countries - and the need for an international means to ensure sustainability through certification will continue.

Government criteria for sustainability of CITES species and for management plans: there is no indication of when, how or by whom these would be worked out.

Proposed self-certification that destructive methods have not been used: the industry will be expected to police itself, an invitation for cheating - and not a substantial improvement over the status quo.

Undertake an international multi-stakeholder process to determine sustainability criteria for all aspects of harvest or collection, import, export, or re-export of: i.e. species (CITES and non-CITES), use destructive fishing practices, handling and transport, ecosystem management.

Ensure a credible, international, 3^rd party standards-setting multi-stakeholder institution relevant to the international trade in non-food coral reef species has participated in the criteria setting process and agreed to the results.

As of a specified time period after the agreement on these criteria, the harvest, import, export, or re-export of ornamental coral reef species must demonstrate compliance with the criteria through internationally recognized performance based certification system.

An appropriation will be provided to assist stakeholders in the US and internationally to comply with the criteria and achieve certified sustainability.