Trade is the transfer of ownership of goods and services from one person to another by getting something in exchange from the buyer.• Trade is sometimes loosely called financial transaction. A network that allows trade is called a market. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.• Trade exists for man due to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions size allows for the benefits of mass production. As such, trade at market prices between two locations benefits both locations.
• Trading can also refer to the action performed by traders and other market agents in the financial markets.INTERNATIONAL TRADE• International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.• Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system.• International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.
• 38 % of fisheries and aquaculture production is traded internationally. This trade was worth US$ 8 billion in 1976, US$ 58 billion in 2002 and US$ 78 billion in 2005.• The most important species traded are shrimp (16.5 % by value in 2004), groundfish (fish living on or near the bottom of the sea such as cod, hake, pollock and haddock, 10.2 %), tuna (8.7 %) and salmon (8.5 %).• An increasing proportion of fish products traded come from aquaculture, which accounts for over one third of global fisheries production. Most of this trade is regulated by the World Trade Organisation (WTO).• China is the world’s number one producer and exporter of fish products. It was responsible for 10 % of world exports by value in 2006• Fish trade can bring a range of benefits, but its potential impact on fish stocks, social equity and economic development must also be considered to minimise negative impacts and promote sustainable development
Net export revenues from fisheries, agricultural and forest commodities fordeveloping countries, 1976–2004. Data sources: Fisheries - FAO FISHSTATfrom Fisheries and Aquaculture Information and Statistics Service;Agriculture and Forestry - FAOSTAT.
Amount of fish traded internationally : A large share of all fish production enters international marketing channels, with about 38% (live weight equivalent) exported in 2004. Value of fish exports: In 2004, total world exports of fish and fish products reached a record value of US $71.5 billion, a 51% increase from 1994. Value of fish imports: World fish imports rise 25.4% from 2000 to 2004, reaching the new record of more than US $75 billion in 2004. Developed countries accounted for about 81% of the total value of imports.
Top exporting countries:• China (exports valued at US$6.6 billion)• Norway (US$4.1 billion)• Thailand (US$4.0 billion)• United States (US$3.9 billion)• Denmark (US$3.6 billion) Top Importing countries:• Canada (US$3.5 billion)• Spain (US$2.6 billion) •Japan (US$14.6 billion worth of• Chile (US$2.5 billion) imports)• Netherlands (US$2.5 billion) •United States (US$12 billion) •Spain (US$5.2 billion)• Viet Nam (US$2.4 billion). •France (US$4.2 billion) •Italy (US$3.9 billion) •United Kingdom (US$2.8 billion) •Germany (US$2.8 billion).
INDIA, in WORLD FISH TRADE• In most developing countries, like India, prosperity of the fisheries sector relies largely on the international trade.• According Ministry of Commerce, Government of India, Around half of the world’s exports of fish and fish products originate from the developing countries.• India’s trade share in fisheries sector is only 2.64% in 2006–07 to the total global trade (with total global trade amounting to about US$ 70 billion), that is Rs. 83,630 million.
Fisheries Sector Trade There are four distinct channels through which fish is marketed in the country. These are: (i) local fresh fish trade; (ii) processed fish trade; (iii) export trade; and (iv) domestic urban trade (Salagrama, 2004). Fishmeal trade is another important market chain catering to poultry and aquaculture sectors. It is estimated that, in 1997–98; about 780 thousand tonnes of fish out of a total production of 5.3 million tonnes (roughly 15 percent) was used for ‘non-human’ uses (FAO, 2002), which could be for fish meal purposes.
EXPORT TRADE• India has been exporting varieties of fisheries items for a long time now.• India’s fish exports even in real terms show an impressive growth from the decade of 1960s till about 1980–81. Though a downward trend is visible thereafter, it picks up from1999–’00 again. (Source: Compiled using data from the Ministry of Commerce,
• In terms of overall exports from the country, seafood stands at 10th place, accounting for 2.7 % of total export earnings in 2001.• Among seafood exporting countries, Indian exports stood at 17th position in terms of quantity and 12th in terms of value (Mathew, 2003). Its export share in the world seafood market is about 2.4% (Kulkarni, 2005).• Shrimp is the most important species in the export market chains and its contribution to overall exports went up from a mere 13 MT in 1953 (Kurien, 1985) to 110,275 MT during 1999–2000 (MPEDA, 2001).• Over time, finfish exports have shown rapid growth in the export basket, accounting for nearly 35% of the volume of export trade in fisheries in 2004–2005.• Although this means that the contribution of shrimp to overall exports declined from about 59% in 1978–79 to a little under 30% in 2004–05 in terms of volume, it still accounts for 63.50% of the total value of the exports (MPEDA, 2006).
Export of marine products(INDIA)Year US $ Million 3000 28572001-02 1253 25002002-03 1425 2133 2000 1850 1899 19092003-04 1331 1644 1425 14782004-05 1478 1500 1253 13312005-06 1644 10002006-07 1850 5002007-08 1899 02008-09 19092009-10 2133 US $ Million2010-11 2857 (Source:MPE
• Major exporting countries from India are as follows Australia ,Canada ,Germany, France, Belgium, Italy, Hong Kong, U.K., China, U.S.A., Japan . EXPORT OF FISHERY AND MARINE PRODUCT FROM INDIA (Rs. Crores) Source: Compiled using data from the Ministry of
SHARE OF DIFFERENT COUNTRIES IN INDIA’S FISH EXPORTS Source: Compiled using data from the Ministry of Commerce, Government of India (GoI).•To begin with Japan however had the highest share in India’s exports followed byUSA.•Amongst the exporters Norway has the lowest share.
• China, Thailand, Vietnam, Indonesia, Mexico, Greenland and Ecuador are the major competitors of India in the main shrimp export markets.• For the promotion of exports, marine products export development authority has been constituted with its main office in Kochi (or, Cochin), Kerala, which takes various actions for improving fish exports from India.
IMPORT TRADE• In the Indian fisheries industry, the situation for imports is quite different from that of exports. From being a country where no imports were allowed, imports quickly increased when the borders were opened, though the level of imports is still very low.• real imports data for a long period of 1962 to 2004 shows that though in the initial years imports were high, it fell drastically later and remain low till now.• From the year 2000, however, an increasing trend is visible. Source: Compiled using comtra
TOTAL IMPORT OF FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTEBRATES (crores) Source: Compiled using data from the Ministry of Commerce, Government of India (GoI).
INDIA’S IMPORT SHARE OF FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTE- BRATES FROM MAJOR EXPORTING COUNTRIES (2006-07) Source: Compiled using data from the Ministry of Commerce, Government of India (GoI). While India’s imports are much lower that exports highest share is that of USA closelyfollowed by Norway. There has been a significant jump in India’s import of fishery items fromNorway
• R. Meenakshi, Fisheries trade in india: Understanding Potntials and Barriers, Institute of Social and Economic Change, Bangalore,India• FACT SHEET: The international fish trade and world fisheries, United Nations Food and Agriculture Organization (FAO)• Fisheries and Policy International Trade,Department for International Development (DFID) and Marine Resources Assessment Group (MRAG) Ltd, UK
Previous Years questions2008- outline the recent trade in seafood export from india.2009- Explain with help of emperical data the recent trends in the export of marine products from India.2010- write short notes:- India’s share in world fish trade.