Summary
This regulation establishes a comprehensive licensing system for foreign fishing vessels wishing to enter Canadian fisheries waters for any purpose including commercial fishing, transhipment, processing, port access, or scientific research. It requires prior ministerial approval based on 'favourable fisheries relations' with flag states, imposes extensive conditions on vessel operations, mandates detailed reporting and observer requirements, sets technical specifications, and authorizes inspections and enforcement actions. It incorporates numerous international fisheries agreements and creates detailed procedural and administrative requirements.
Reason
This regulation imposes heavy trade barriers that restrict foreign vessels from accessing Canadian waters and ports, even for legitimate transhipment, servicing, or processing activities—creating exactly the kind of interjurisdictional trade restriction that economists like Friedman and Hayek condemned as economically destructive. The licensing system grants sweeping ministerial discretion, creates a costly administrative bureaucracy, and imposes extensive compliance burdens that raise costs and reduce competition. Conservation objectives could be achieved more efficiently through property rights systems, tradable quotas, or international agreements without the heavy-handed command-and-control approach that inevitably distorts incentives, reduces supply, and invites regulatory capture. The regulation's unintended costs—including higher prices for Canadian consumers, reduced economic activity in port communities, and barriers to international cooperation—far outweigh any marginal enforcement benefits, especially when more market-oriented alternatives exist.