3. Related Cases: Coral trade

1. The Issue
"Among the world's most beautiful habitats" are the coralreefs which are also "among the most threatened ecosystems on theplanet." Coral, a very sensitive organism, establishes itself inclear warm waters where there are not enough nutrients to sustainother marine life. The coral animal does this by "harnessing"microscopic algae which provide the corals with food and oxygenwhile the corals give the algae carbon dioxide and other necessarynutrients. As a coral reef emerges, it provides a home for avariety of organisms, all dependent on each other for life. Thecoral itself is very sensitive to water purity and temperaturechanges; therefore, if the coral is subjected to drastic changes inthese indicators, it may die. Coral is now being removed from theocean for a variety of reasons and concern about trade in coral hasprompted action. 2. Description Coral has many uses ranging from medicinal purposes to foodsupplies to protecting coastlines from storms and erosion. However, it has increasingly become exploited, in products such asfiller for concrete, gift shop souvenirs, and decorations foraquariums. The coral reef has become an endangered habitat. "Among the most biologically diverse ecosystems on Earth," thecoral reefs of ninety-three countries have been subject to damageand destruction by human beings. This lowers the benefits thatmight be received from a more careful monitoring and harvesting ofcoral. Although covering only 0.17 percent of the ocean floor,coral provides a home for one quarter of all marine species. Knownas the "tropical rain forests of the ocean," coral reefs are thehome for "one-tenth of all fish caught for human consumption." Coral reef species also provide great contributions to theworld of science and medicine. Kainic Acid is produced by certainreef organisms and can be used "as a diagnostic chemical toinvestigate Huntington's chorea," a nervous system disease. Otherchemicals produced by reef species are used in cancer and AIDSresearch. "Corals themselves produce a natural sunscreen" soonto be marketed, and "their porous limestone skeletons are promisingfor bone grafts in humans." Coral reefs serve to protect 109countries from storm surges and coastal erosion. Humans in some manner have destroyed between five and tenpercent of the world's coral reefs and will succeed in destroyingforty to sixty percent of them in the next sixty years unlesstrends change. This loss comes from a variety of sources,including: (1) dense coastal populations which increase the amount of sewage and waste production that affects the purity of the water; (2) heavy coastal development, logging, farming, mining, and dredging which increase the amounts of silt in the water that block out light necessary for algae photosynthesis and that may smother the coral; and (3) over-exploitation by fishermen looking for new sources of income which result in the decimation of the reef community. The coral reef is also vulnerable to global warming and the increasing intensity of the sun's ultraviolet rays due to ozone depletion. A further source of coral degradation is the tourist industry. Ironically, as tourism relies on the coral reefs to draw itscustomers, it also contributes to the destruction of the reefsbecause of many tourist resorts and the carelessness of thetourists themselves. Many people attempting to capture the beautyof the coral reefs walk on them, stir up sediments around them, orbreak off pieces of them for souvenirs. Also, cruise-liners andtourist boats often drop anchor over the reefs causing tremendousamounts of damage that takes years to repair. However, two means of degradation are intentional. Theyinvolve the mining of reefs for building materials and theexploitation of the coral reefs and their species in order tosatisfy the growing demand for decorative products and salt-water,home aquariums. Both Sri Lanka and India as well as thePhilippines and Indonesia mine coral to produce cement for domesticpurposes. This has resulted in the complete destruction of certainreefs. Worldwide, over 1.5 million kilograms of coral areharvested each year, and the United States "accounts for more thana third of the world demand for [coral and tropical fish]." Thecoral industry is big business. For example, "871 species [ofliving coral] were imported to the United States in 1984, about250,000 in 1991." Methods used to obtain coral and its related species are alsoenvironmentally atrocious. One chemical used in the capture ofcertain reef species is sodium cyanide. This not only causes thefish to become weakened and sickly, but it also kills the coral. For the past twenty years, more than one million kilograms (1100tons) of sodium cyanide has been used in the reefs. This amount is"enough to kill five hundred million people." There have been some efforts by many of the countries involvedto stop the degradation and begin to conserve their preciousresource; however, only a limited number of programs currentlyexist. Some believes the solution is in controlling tourism to acertain degree and putting some of the money tourism makes backinto the conservation programs. The Regional Seas Program was set up by the United NationsEnvironment Programme (UNEP) in 1974 in order to enable countriesto "establish goals and negotiate legally binding treaties tomanage coastal waters." Although ten regional programs nowexist, they are limited because of lack of funding. In 1985,"stony corals were listed in Appendix II of CITES (the Conventionon International Trade in Endangered Species), so countries couldbegin tracking the trade" (see SWIFT, ELEPHANT, and RHINO casesrelating to CITES). There are currently trade restrictions onsome corals. "Seven reefs are now protected as World HeritageSites," and the "World Bank plans to put 15-20% of its $3-billionbiodiversity budget into marine and coastal habitats." Anotherproposal has suggested that the world's reefs be mapped usingsatellite and aerial surveillance equipment to increase theinformation on coral reefs so that countries can better monitorthem. In 1975 Australia created the Great Barrier Reef Park toregulate and monitor the use of the reef so that it remainshealthy. The reef was divided up into different sections: one forscientific research, one for tourists, and one each for commercialfishing and harvesting. These divisions enabled Australia'sgovernment to keep tabs on how different activities affect thereef. The Sudan has "prohibited the export of marine ornamentals." Sri Lanka in 1991 "halted trade in coral but not in tropical fish." Kenya, New Caledonia, and the Maldives have "licensing andregulatory systems," and the Philippines and Indonesia have somerestrictions that are not obeyed. Germany "has banned the sale ofcertain corals." China is also taking action against thecollection and damaging of coral by declaring a National Coral ReefReserve in Hainan Island. The United States itself has engaged in a variety ofprotective measures. It has acted to preserve its coral reefs bydeclaring certain areas as sanctuaries which eliminates oil and gasactivities permanently from these areas. A House ofRepresentatives Bill has declared that if reef activities are notcontrolled, both the reef and the $50 million tourist business inFlorida will die. In June 1990, President George Bush declared aten-year ban on offshore drilling near the Florida Keys. In 1989,Florida shut down its coral industry to protect its reefs. Ithas taken protectionist measures including "licens[ing]collectors..., in some cases set[ting] limits on catches," andticketing tourists who engage in activities abusive to sanctuarycorals including "anchoring in coral, spear fishing, and hanging onto coral while scuba diving." In 1990, Hawaii "banned the takingand selling of stony coral and in 1991, of any 'rock with marinelife attached.'" Guam outlawed "the import and collection of allstony coral, living or dead," and Puerto Rico "classes live rock asprotected earth crust." Although the United States "banned theimport of coral from the Philippines, where export is legal," itcontinues to receive coral from Indonesia, Singapore and otherplaces.3. Related Cases BAUXITE case SEAHORSE case BARRIER case Keyword Clusters (1): SIC = CRAFT (2): Bio-geography = OCEAN (3): Environmental Problem = HABITat loss4. Draft Author: Nicole E. LewisB. LEGAL Clusters5. Discourse and Status: AGReement and COMPlete A variety of nations have attempted to regulate the coralindustry and protect the reefs. However, there is no all-inclusiveinternational agreement concerning coral reefs. Although stonycorals were added to Appendix II of the CITES Agreement in 1985,this action simply allowed countries to follow the trade of theitems. In that respect, there is agreement that corals are aspecies in need of monitoring; however, there is no universalagreement on what type and how much regulation should beadministered to the coral reefs. For now, regulation and tradecontrol is left up to individual states.6. Forum and Scope: CITES and MULTIlateral One hundred and nine nations are protected from detrimentalstorms and coastal erosion by coral reefs. Ninety-three countrieshave coral reefs which have been damaged and/or destroyed by someform of human action. 7. Decision Breadth: 117 (CITES signatories) Some multi-national organizations are following the coral reefissue such as the members of the CITES and the Regional SeasProgram, the World Conservation Union (involved in studies of theissue), and the United Nations Environment Programme (UNEP). However, the majority of action is being taken unilaterally bygovernments wishing to regulate their own resources. Theseinclude, but are not limited to, the governments of Australia,China, Germany, the Sudan, Sri Lanka, Kenya, New Caledonia, theMaldives, the Philippines, Indonesia, and the United States(including Guam and Puerto Rico). The U.S. Minerals ManagementService (MMS) and the National Oceanic and AtmosphericAdministration (NOAA) are two U.S. government agencies involved inthe coral issue.8. Legal Standing: TREATY A variety of nations have included regulatory legislationconcerning the coral reef. For example, the United States Code ofFederal Regulations for Virgin Islands National Park states: No person shall cut, carve, injure, mutilate, remove, displace, or break off any underwater growth or formation. Nor shall any person dig in the bottom, or in any other way injure or impair the natural beauty of the underwater scene. No rope, wire, or other contrivance...shall be attached to any coral, rock, or other underwater formation....No watchcraft shall be operated in such a manner, nor shall anchors or any other mooring device be cast or dragged or placed, so as to strike or otherwise cause damage to any underwater features.C. GEOGRAPHIC Clusters9. Geographic Locations a. Geographic Domain : GLOBAL b. Geographic Site : GLOBAL c. Geographic Impact : GLOBAL Badly damaged areas include Japan, Taiwan, the Philippines,Indonesia, Singapore, Sri Lanka, India, Kenya, Tanzania,Mozambique, Madagascar, the Dominican Republic, Haiti, Cuba,Jamaica, Trinidad, Tobago, and Florida in the United States. 10. Sub-National Factors: NO Florida, Hawaii, Guam, and Puerto Rico all have their ownrestrictions regarding the harvesting and sale of coral. However,most agreement is at the national and international levels when theissue of coral arises.11. Type of Habitat: OCEAND. TRADE Clusters12. Type of Measure: Import Ban [IMBAN] There are actually a variety of measures used to protectcoral. 1. Import Ban (the United States bans imports of coral from the Philippines) 2. Export Ban (the Philippines bans coral exports) 3. Some collection quotas (Florida) 4. Licensing (Florida) 5. Regulatory Standards (Kenya, New Caledonia) 6. Bans on the sale of certain corals (Germany) 13. Direct vs. Indirect Impacts: DIRect14. Relation of Measure to Environmental Impact a. Directly Related : YES CORAL b. Indirectly Related : YES FISH c. Not Related : NO d. Process Related : YES HABITat loss Coral legislation also covers certain species of fish whichare unique to the coral reef eco-system, because of over-exploitation of those fishes. Legislation also concerns thecapture, export, and sale of certain reef fish. In capturingcertain fish, the chemical sodium cyanide is used to stun the fishso that they may be collected more easily. In the process, much ofthe coral is damaged or destroyed. There are regulationsconcerning capture methods and the use of such chemicals.15. Trade Product Identification: CORAL The trade product is "raw" coral for aquariums, exotic fishfound in the reefs, gift-shop souvenir corals, and cement made fromthe limestone. The products also include coral and animals thatlive in and around the reefs, as well as other uses such as coralreef crafts, lime extraction (useful for making concrete), and fishtank decorations. The leading coral exporters are the Philippines,Sri Lanka, the Caribbean nations, the Red Sea area, East Africa,Indonesia, the South Pacific, Singapore. The leading importers arethe United States and Canada.16. Economic Data The aquarium trade is big business within the United States. The United States is "the world's largest consumer of tropicalfish." There are over 10 million aquarium hobbyists in the U.S.involving between two and three billion fish. Worldwide, $4billion is spent on this hobby, with the United States accountingfor about $1.6 billion. The new trend is the home mini-reef whichtakes between fifteen and several hundred gallons of water; itscost ranges from $1,000 to tens of thousands of dollars. Thefoundation of such a mini-reef is "live rock," chunks of dead coraland non-coral limestone that serve as the balance of the captiveecosystem. Marine aquariums constitute 15 percent of Americanaquarium sales. North Americans spend $240 million every year onequipment and animals. Florida is a good example of the vastness of the coralbusiness. One establishment, Exotic Aquaria of Miami, needs 50tons of live rock every year to sustain its business. Floridaalone has 290 licensed coral collectors, 20 percent of which usecoral harvesting as their "primary source of income." Wholesaleprices of the rock are above $2 million, with the retail pricerunning at more than five times that amount." Coral harvestingis a very lucrative business, especially when there is such a greatdemand for the product by countries such as the United States. However, if the collectors are not careful, there will be no morecoral to harvest.17. Impact of Measure on Trade Competitiveness: BAN An increasing number of coral reefs are being declaredsanctuaries which protects them from any outside exploitation byhumans other than through indirect pollution effects. The cost ofcertain collection regulations applies also to species around thecoral. As the restrictions on coral and reef species collectiongrow, the price of these items will probably also increase.18. Industry Sector: CRAFT While fish keeping is a hobby belonging to the arts and craftsindustry, there are several ways coral is used.19. Exporter and Importer: MANY and USAE. ENVIRONMENT Clusters20. Environmental Problem Type: HABITat loss The coral reef problem has implications for many other relatedenvironmental problems. The most obvious ones are trying topreserve the world's most important and sensitive resources (thecoral reef) and attempting to maintain bio-diversity by regulatingthe ecosystem. Further, there are implications for pollutioncontrol and slowing the progress of other global problems such asglobal warming and ozone loss. These three variables affect thecoral reef in tremendous ways and may harm the reef habitat if theyare not controlled.21. Name, Type, and Diversity of Species Name: Coral Type: Animal/Radiata Diversity: NA22. Impact and Effect: HIGH and PRODuct The effects of pollution on the coral reefs are constantlybeing studied. Coral is not very sensitive to water purity andtemperature; therefore, as pollution increases, the coral reefs areat a greater risk of being damaged or destroyed. Also, ifcollection techniques and policies are not regulated or stoppedcompletely, the species among the coral reefs and the reefsthemselves will be depleted before they have a chance to regeneratethemselves.23. Urgency and Lifetime: MEDium and 100s of years Much of the coral reefs could be destroyed within the next 50years. Many coral reefs are hundreds of years old and can bepermanently decimated within a matter of minutes.24. Substitutes: SYNTHetic products Large commercial organizations which use aquariums asexhibits, for example, Epcot Center, use artificial substitutes fortheir coral reefs. There are also attempts to establish anaquaculture where certain demanded species can be raised incaptivity. However, it has not yet been possible to get a stonycoral to spawn or to establish a coral colony in captivity. Also,it takes an extremely long time for a coral colony to form.VI. OTHER Factors25. Culture: YES Keeping aquariums is thought by Chinese to lead to good healthand therefore are kept in many homes. For Americans and Canadiansit is a hobby and is said to provides a calming effect. Perhaps itis reminiscent of sitting by an ocean. 26. Trans-Border: NO27. Rights: NO28. Relevant LiteratureAllen, William H. "Increased Dangers to Caribbean Marine Ecosystems." Bioscience 42/5 (May 1992).Baquero, Jaime. "There's a Tankful of Environmental Trouble in Aquariums." The Ottawa Citizen (December 15, 1992).Brower, Kenneth. "State of the Reef." Audubon 91 (March 1989)."China Moves to Protect Coral Reefs in South China Sea." Agence France Presse (August 20, 1992).Derr, Mark. "Raiders of the Reef." Audubon (March/April, 1992)."An Ecology Agency Is Proposed." The New York Times (September 21, 1980)."Fishy Trade for Home Aquariums Destroys Coral Reefs." New Scientist 108 (19/26 December 1985).Gittings, Dr. Steve. "Historic Data on Gulf of Mexico Shows Compatibility with Drilling, Production." Offshore (May 1992).International Environment Reporter Current Report 11/7 (July 13, 1989).Jackson, Derrick Z. "Trouble Comes to a Deep-Water Paradise." The Boston Globe (November 4, 1990).Kanamine, Linda. "Some Fear Ecosystems in Jeopardy." USA Today (June 12, 1992).Mathews, Jay. "Gulf Oil Spills Defy Easy Cleanup, Experts Conclude." The Washington Post (March 9, 1991).Reed, Stanley. "A Coral Reef in Your Living Room." Business Week (May 7, 1990)."Sanctuarial Movement Growing in U.S. Waters." Offshore (September 1991).Schmich, Mary T. "Coral Reef War Pits Nature vs. Tourists." Chicago Tribune (July 22, 1990).Smucker, Philip. "Thailand: Sea Gypsies Survive on Fringes of Tourist Industry." Inter Press Service (April 25, 1991).Tsuruoka, Doug. "Vanishing Coral Reefs." Far Eastern Economic Review 156/1 (January 7, 1993)."U.S. Justified in Attaching Environmental Strings to Foreign Aid," Kasten Says." PR Newswire (May 12, 1989).Weber, Peter K. "Saving the Coral Reefs." The Futurist 27/4 (July 1993).Worldwatch Institute. State of the World, 1993. New York: W.W. Norton and Company, Inc., 1993.