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G2 Joint Venture Reserve

Purpose and Need

The original FMP for the Gulf of Alaska (GOA) was prepared by the Council and published by the Secretary on April 21, 1978 (43 FR 17242). Among other things, the FMP established the amount of fish set aside as reserve, to ensure that an adequate supply of fish was available for potential harvest by U.S. vessels in joint venture operations (the sale of U.S. caught fish to foreign processors). The original FMP also established a procedure for apportioning amounts of fish from the reserve to the total allowable levels for foreign fishing (TALFFs) during the fishing year. 

Amendment 2 was proposed to:

1) Increase the amount of pollock held in reserve to 133,800 mt, with appropriate increases in the reserves of species taken incidental to fishing for pollock.

2) Modify the method used to determine the portion of each species’ optimum yield (OY) set aside as reserve. The action established a special joint venture reserve wherein: TALFF = (0.8 OY) - domestic annual harvest - special joint venture reserve. The intent was to re-evaluate the remaining 20% of the OY and the joint venture reserves beginning January 2, 1979 and reallocate to the domestic or foreign fisheries following reassessment of U.S. development, both in terms of joint venture operations and delivery to U.S. shore-based processors. 

With such a large piece of the fishery held in reserve, the Council also wanted to ensure that the fishery was apportioned effectively so that optimum yield (OY) could be reached and the fishery fully utilized. Amendment 2 provided that 25% of the initial reserve would be allocated to the TALFF every two months, unless it was determined by NMFS that the U.S. fleet could harvest all of the remaining reserve in the fishing year. This amendment stemmed from the difficulty of accurately predicting U.S. harvesting capacity when new joint ventures continued to be initiated. By establishing reserve amounts of fish for domestic harvest that could eventually be available to the foreign fleet, the possibility of overfishing or disrupting the foreign fisheries mid-season would be diminished, providing greater assurance that optimum yield would be achieved. 

Analysis

A 2-page environmental assessment (dated September 13, 1978) was prepared for this amendment. Two alternative solutions to the 25% bimonthly apportionment of the reserve to the TALFF were considered: 1) establishing a high, initial U.S. capacity estimate with lower TALFFs; or 2) establishing a low U.S. capacity with higher TALFFs. The first alternative was rejected on the basis that if the initial U.S. harvest capacity was greatly overestimated, there would not be adequate time to amend the FMP to increase the TALFF in order to achieve optimum yield. The second alternative was rejected on the basis that if the initial U.S. harvest capacity was underestimated, a relatively high TALFF could result in overfishing or disruption of the foreign fishery if an abrupt closure was deemed necessary. The preferred alternative allowed more flexibility to reach the optimum yield and prevent overfishing, depending on anticipated and reported U.S. harvest levels.

Regulation Summary

The regulation increased the amount of pollock held in reserve to 133,800 mt, with appropriate increases in the reserves of species taken incidental to fishing for pollock, and established the special joint reserve and stipulated the method for calculating the foreign allowance, wherein: TALFF = (0.8 OY) - domestic annual harvest - special joint venture reserve. The regulation also provided for 25% of the initial reserve to be allocated to the TALFF every two months, unless it was determined that the U.S. fleet could harvest all of the remaining reserve in the fishing year. That determination would be based on: 1) reported U.S. catch and effort by species and area; 2) projected U.S. catch and effort by species and area; and 3) projected and utilized processing capacity of U.S. fish processors. The regulation also stipulated that if part of the scheduled 25% apportionment to the TALFFs was withheld and the U.S. fleet failed to achieve the anticipated harvest levels in the next period, the amount of fish previously withheld would be made available to the TALFFs on the next bimonthly date.

Results

The amendment allowed for sufficient flexibility to apportion the reserve and maintain a TALFF that would achieve the OY, prevent overfishing, allow for joint ventures to continue, and provide for an expanding domestic fleet. 

Over the next several years, multiple amendments adjusted the domestic annual harvest (DAH) and the TALFF.  Amendment 6 adjusted the domestic annual harvest and corresponding TALFF to reflect the best information available from the observers and domestic processors; Amendment 7 established a mechanism to periodically review and reassess the domestic annual harvest and the reserve to TALFF; Amendment 8 allowed the transfer of domestic allocations to foreign TALFF; Amendment 11 increased the flexibility of the Regional Administrator to reapportion reserves and surplus DAH to foreign fishing. Lastly, Amendment 17 required all vessels receiving groundfish harvested in the EEZ to hold a federal permit and comply with federal reporting requirements. Ultimately, some of these amendments led to the complete Americanization of Gulf of Alaska fisheries; no foreign vessels caught or processed fish in the Gulf of Alaska after 1988.