Global trade in marine fisheries and aquaculture reached a record $186 billion in 2022, a 63% increase from $114 billion in 2012. Particularly notable is the rise of South-South trade — commerce between developing nations — which doubled over the same period, growing from $19 billion to $39 billion. This boom highlights the significant opportunities in the sector for sustainable economic growth, but also underscores the challenges that must be addressed, including trade barriers, overfishing, and climate change.
According to a new analysis by the UN Conference on Trade and Development (UNCTAD), developing countries are rapidly expanding their trade in marine fisheries, aquaculture, fish processing, and fishing vessels. Countries like Chile, China, Ecuador, India, Peru, Thailand, and Vietnam are at the forefront of this movement, accounting for 46% of global seafood exports in 2022 — up from 42% in 2012. Even more impressively, developing nations contributed 53% of higher-value processed seafood exports, compared to 40% for unprocessed goods, showcasing their success in adding value to their marine exports.
“This growth in South-South trade signifies a new era where developing countries are increasingly trading with each other, retaining more economic benefits locally while creating jobs and fostering innovation,” says David Vivas Eugui, head of UNCTAD’s ocean and circular economy section. He notes that this shift not only improves food security and provides protein-rich foods to coastal populations, but also strengthens local industries and increases their capacity to compete in international markets.
Competitive Advantage of Developing Countries
UNCTAD’s Revealed Comparative Advantage analysis highlights several countries excelling in specific marine products:
- Mozambique: Exports rock lobsters and sea crawfish.
- Argentina: Known for frozen hake, a globally prized fish.
- Morocco: Dominates with processed sardines.
- Peru: Specializes in preserved anchovies from nutrient-rich stocks in the Humboldt Current.
A | B |
C | D |
These specializations allow developing countries to capitalize on global markets, driving economic growth and diversifying export portfolios.
Challenges: Climate Change, Overfishing, and Trade Barriers
Despite the significant growth, the sector faces considerable hurdles. Overfishing remains a critical concern, with overfished stocks tripling since 1974 and more than one-third of the world’s assessed fisheries classified as overfished. Climate change exacerbates these issues by affecting sea temperatures and ecosystems, threatening both marine life and the livelihoods dependent on these resources.
Non-tariff measures (NTMs) — rules and regulations other than tariffs — pose another major challenge. NTMs, including sanitary and phytosanitary (SPS) standards and technical barriers to trade (TBT), often increase compliance costs for exporters and restrict market access. A staggering 93% of fish product imports are affected by SPS measures, while 82% face TBT hurdles.
Revitalizing the Global System of Trade Preferences (GSTP)
To unlock further growth, there is a pressing need to revitalize the Global System of Trade Preferences (GSTP) among developing countries. This agreement promotes trade by offering preferential treatment in tariffs and other barriers. Despite lower tariffs under the GSTP, NTMs continue to obstruct trade flows. Harmonizing and reducing NTMs could enhance market access and help developing countries integrate more fully into global value chains.
In 2022, GSTP members accounted for over 60% of developing countries’ total exports in marine fisheries and aquaculture, underlining the agreement’s vital role in fostering South-South trade. The GSTP’s 42 member countries, spanning Africa, Asia, and Latin America, represent a market of 4 billion people, offering enormous potential.
“The GSTP provides a unique platform for addressing trade challenges by fostering cooperation among developing countries,” says Chantal Line Carpentier, head of UNCTAD’s trade, environment, and climate change branch. Revitalizing the GSTP could increase trade flows, improve food security, and promote sustainable economic development across the developing world.
UNCTAD urges renewed commitment to the GSTP to unlock the untapped potential of South-South trade in fisheries and aquaculture, benefiting developing nations and helping advance key Sustainable Development Goals (SDGs), such as improving food security (SDG 2) and protecting marine life (SDG 14).
Source: UNCTAD