DWFNDistant Water Fishing Nations
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If the existing DWFN fleets operating in the EEZ are forced out by appropriate access terms and conditions, they will be replaced by domestic harvestors/processors.
Rather it has led to a situation in which domestic harvestors/processors wish to undertake new activities, but doubt they could survive in face of competition from well entrenched DWFN rivals.
It is maintained that if DWFN fleets as harvesters and processors are denied access to the Alaskan groundfisheries, then a void" will be created in foreign groundfish markets.
For example, suppose that domestic fishermen and offshore processors were compelled to purchase their vessels from heavily protected, high-cost domestic shipyards, while DWFN fleet owners were able to purchase their vessels on the world market.
Off Canada's Atlantic coast, where most of Canada's gains from EFJ lie, DWFN participation in Canada's EEZ fisheries has steadily dwindled and in time will likely approach zero.
As suggested earlier, the potential can be easily lost if the terms and conditions of access which govern DWFN participation in the coastal state's fisheries are badly designed.
In deciding how to analyze the design (from the coastal state's perspective) of the optimal set of terms and conditions of access, it is important to consider the nature of the relationship between the coastal state and its DWFN partner(s).
In discussing the potential benefits of coastal state-DWFN arrangements, I wrote in terms of the coastal state "importing" the harvesting/processing services of DWFN fleets.
In an ideal world, as seen from the perspective of the coastal state, the DWFN "hireling" would be subject to the absolute control of the coastal state.
The coastal state cannot exercise perfect control over the DWFN "hirelings.
The implication of the hierarchical coastal state-DWFN relationship and the typical coastal state's inability to exercise absolute control over DWFN fleets is that the appropriate analytical framework may be found in what has come to be known as principal-agent analysis.
PNG extracts a return from DWFN fleets by means of access fees.