Monthly newsletter of the tuna fishing industry

It is estimated that a quarter of the world's catch is produced from illegal, unregulated, and unreported (IUU) fishing. The UN that
includes more than 180 countries is now drafting rules that will close all its ports to IUU fishermen to prevent them from refueling,
taking on fresh crews, and unloading catches. The aggressive move by the UN which may affect many tuna purse seiners was
lobbied by environmental groups blaming pirate vessels for abusive catching practices on so-called "endangered" species. The
unregulated efforts of the IUU fishermen may also jeopardize the vessels in good standing that abide by UN rules enforced by their
respective regulatory agencies or face heavy penalties. The UN estimated that in 1997, 100,000 MT of Patagonian Toothfish was
caught with a value of GB £300 million. Environmentalists claim that if the trend continues, the Patagonian Toothfish will become
extinct in 2-3 years, The rules are said to demand the closure of companies that own and control the illegal ships. The fishing vessels
are said to be owned by companies in Europe, USA, Japan and Taiwan. According to reports from Japan and the USA, there 345
flagofconvenience vessels fishing for tuna in the Atlantic and the Mediterranean. They flew flags from 17 countries including
Honduras (103), Belize (83), Equatorial Guinea (51) and St. Vincent and the Grenadines (50). It was reported that most of the tuna
vessels me owned and managed by Taiwanese enterprises

To add to the challenges of the Taiwanese fishing enterprises, China is countering Taiwan's many approaches toward Island
Governments in the South Pacific. As an initial step, it has shown interest in assisting the Government of Tonga in developing its local
fishing industry. Tonga, with assistance from Japan, built a modern fish receiving facility in the harbour of Nuku'alofa. Tonga has been
calling for foreign, partners to assist them in acquiring know-how, capital, and vessels, China, the largest shipbuilder in the world saw
this as a golden opportunity, China has a large number of vessels fishing for different species on the high-seas worldwide.

China, positioning itself as the next superpower is following Japan's approach in courting the Island Nations. In exchange for fishing
licenses and other commercial and trade opportunities, it provides financial and "know-how" assistance in, developing the. local
fishing industry. In August 2000, Japan announced that it will dispatch specialists to conduct fishing training programs in the island of
Yap in Micronesia. This is part of a 3year program through July 2003 that includes the training of fishermen in Yap, their subsequent
acceptance in Japan and the supply of their machinery, The program is said to concentrate on tuna fishing operations.

According to IATTC reports, the low yellowfin catch in the ETP as of October 30, 2000 was 235,846 MT, compared to 262,671 MT for
the same period in 1999. The skipjack catch in the ETP for the same period in 2000 was 195,291 MT, compared to 244,160 MT in 1999.
The bigeye catch in the ETP for the same period in 2000 was estimated at 64,471 MT . The yellowfin fisheries closure in the CYRA is
still scheduled for December 1st.

Efforts to bring the price of tuna down has proven itself to be counterproductive over the long term for almost all sectors of the
industry, Although canneries claim to be giving up some of their profits to compete with other canneries and to move their large
inventories, vessel operators have given up all of their profits plus some of their future profits since most of them have been
operating at a deficit. Very little (if any) discounts have been passed on to the consumer. Industry experts believe that all price and
cost reductions have ended up in the bottomline of the retailers. In the greatest irony yet fuel costs, one of the vessel's largest
expenses is at a 20year high when tuna is at its over 20year low.

The price of skipjack in Ecuador is still about $450/MT. As if the problem of the tuna industry weren't enough a recent shipment of
tuna loins from Ecuador exported to Europe gave the tuna industry a blackeye when Customs Officials in Vigo (Spain) found some
boxes said to contain tuna loins containing drugs during a random check.

According to IATTC reports, several Spanish boats terminated their tuna fishing activities in the Eastern Pacific and moved to the
Western Pacific Ocean (WPO). Four big Spanish boats registered in Guatemala, Spain, and Ecuador set course for West of 150
degrees West, the Western Pacific Ocean about mid October. Together, they represent a total catching volume of 7000 MT. Also, two
U.S. seiners and one Panamanian boat, with a total of 6000 MT capacity sailed for the WPO. Those 7 boats represent about 8% of the
total catching capacity within the Eastern Pacific. The fact that these boats, who mainly target skipjack tuna, are relocating, is the
result of the limitations enacted by the IATTC on FAD fishing, It can also be attributed to the disappointing catches in the Eastern
Pacific Ocean. Although more than 50% of the EPO fleet is now in port due to the very low tuna price, and the, IATTC catching
restrictions, purse seiners with tonnages of 10002500 MT are continuing to fish and to move to areas where they expect better
catches.

On October 3,2 000, the National Marine Fisheries Service imposed embargoes on yellowfin tuna and yellowfin tuna products from
Belize, Bolivia, Colombia, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Vanuatu, and Venezuela. This action prohibits the
importation into the United States from these nations of yellowfin tuna and yellowfin tuna products harvested by purse seining in the
Eastern Tropical Pacific, Ocean. NMFS is imposing the embargoes because these nations harvest tuna in the ETP with purse seine
vessels with greater than 400 short ton of carrying capacity and have not received "affirmative findings" as required by U.S.
regulations. This determination remains in effect for each nation until an affirmative finding has been granted by the NMFS.

The NWS also issued an embargo for Spain under the Marine Mammal Protection Act on October 6, 2000. This embargo prohibits the
importation into the United States of yellowfin tuna products harvested in the eastern tropical Pacific Ocean (ETP) after March 3,
1999, by Spanishflag purse seine vessels or vessels operating under Spanish jurisdiction and all other yellowfin tuna harvested by
purse seine in the ETP exported from Spain. The embargo determination was made after considering documentary evidence
submitted by the Government of Spain and obtained from the InterAmerican Tropical Tuna Commission (IATTC).

At the Second Tuna Congress held in General Santos City on October 2829, Philippine tuna producers called for the government to be
more actively involved in strengthening the local industry to compete with the growing global tuna industry, They asked for more
government intervention to save the industry from a possible collapse. Among the resolutions passed in the twoday congress include
a call for government to accelerate negotiations for fishery access agreements with Pacific nations. The congress also urged
government to lobby for the reduction of the 24% tariff an Philippine tuna products in the US market. During the twoday congress,
experts warned that the current global crisis will most likely result in a worldwide shakeout.

The December rebound predicted by many industry experts is beginning to sound more like the Y2K predictions. More and more tuna
vessels are returning to port for their early Christmas break and planned extended stays. Canneries do not seem to be in any rush
either. In American Samoa, 21 vessels were tied up, in port as of midNovember with about half a dozen on their way back for an
extended tie-up. With the planned reconstruction American Samoa's main thoroughfare traversing the two major U.S. canneries, it
has been reported that StarKist Samoa, Inc. and COS-Samoa Packing Company will shut down starting December 10 until the end of
January 2001. This closure not only reduces demand for fish in the coming months but verifies the claim that canneries are
wellstocked for the next 46 months.

Casamar opened its SALT FACTORY in October in Guam supplying vessels with highquality Salt. Grand Opening Price of salt was
$140/MT FAS (FreeAlongside) CASAMAR DOCK competing with salt available in Chuuk (FSM) and the Zuanich Salt Factory in Guam.
Reasonable discounts may apply to volume and contract purchases. Casamar Guam Inc. is the largest onestop shop for tuna vessels
in the Western Pacific providing ship repair services, net repair and construction facilities, lube oil, fish unloading and transshipping,
salt, hydraulic parts and services, fuel, and a complete line of fishing supplies for tuna purse seiners and longliners.