Incentivising change to beneficial ownership and open registers—Holding flag states responsible for their fleets and costs of illegal fishing

Abstract

AbstractWhile efforts to reduce illegal fishing have been underway for some time, market data suggest the volume of illegal fish in the markets is not decreasing significantly. One issue that may be driving this is the difficulty in imposing meaningful sanctions. We discuss an alternative approach aimed at reducing illegal fishing. A State's open register allows relatively unassociated vessels to purchase entry to that register and fly that State's flag. This relationship between the vessel and the flag State is both a financial and legal one. The licensed vessel must comply with laws of the flag State around operations, safety, fishing access agreements, and other regulatory requirements. The flag State must exercise due diligence in the performance of its responsibility to exercise jurisdiction and control over its vessels. The State(s) which has incurred the cost and damages resulting from pursuit, apprehension, and prosecution of the vessel may have a claim for expenses and damages from the flag State if the flag State fails to exercise due diligence. By shifting the costs and harms associated with illegal fishing from coastal States to flag States that fail to exercise jurisdiction and control over the vessels they flag, such flag States may be incentivised to improve oversight over their vessels and join the international effort to combat illegal fishing.