Category: Legislation

On December 13, the French Polynesian Assembly passed a law to reform regulations in the pearl farming sector. On June 28, the State Council issued a significant decision, approving most of the law while rejecting four articles concerning jewelry artisans. Consequently, the law will be promulgated before July 10 without these contested provisions.

This ruling follows a legal challenge by Pearly Investissements. Tearii Alpha, Minister of Primary Resource Development, clarified that despite the rejection of four articles, the law will still be enacted within the next ten days. The government has pledged swift action to implement the reform starting in July.

Concurrently, new legislation will be introduced to regulate street vending around markets, aiming to organize this sector while protecting jewelry artisans’ livelihoods. The reform’s overarching goals are to enhance the image of Tahitian cultured pearls, professionalize the industry, and establish strict resource management rules.

Minister Alpha emphasized the importance of tracking nuclei from production to exported pearls to streamline export procedures. The law will also introduce quotas, environmental and health standards, and transparency requirements for traders. Despite the partial rejection, the minister expressed satisfaction with the State Council’s decision and announced awareness campaigns in pearl-producing islands to prepare professionals for the sector’s reorganization.

In a legal dispute between EURL Raipoe International and French Polynesia, the company sought compensation of 124,410,000 FCFP for the destruction of 414,700 pearls by the Pearl Farming Department between 2007 and 2016.

The pearl trader argued that even if considered rejects, these pearls had market value, particularly when imperfections affected less than half their surface and they could be commercially sold as cut cultured pearls.

The court acknowledged the quality control exercised by the Pearl Farming Department. However, it also ruled that the deprivation of property resulting from the pearl destruction warranted compensation under Article 17 of the 1789 Declaration of the Rights of Man and of the Citizen. The court concluded the company failed to prove the destroyed pearls could be partially repurposed for commercial use.

Consequently, the court ordered French Polynesia to pay EURL Raipoe International 10,297,782 FCFP in compensation for the property deprivation of 323,080 pearls destroyed on May 17, 2016.

On Tuesday, December 13, 2016, the Tahiti Assembly approved a bill regulating professional activities related to the production and marketing of pearl and mother-of-pearl products in French Polynesia. The reform sparked intense debate among assembly members, who expressed divergent views on the legislation’s potential impact on the pearl industry.

Political Divide on Reform

The discussions were largely dominated by the Rassemblement pour une majorité autonomiste (RMA) group, which backed the bill. Charles Fong Loi, a representative of the group, praised the initiative as addressing the sector’s current crisis. He emphasized lagoon protection measures and the creation of advisory committees to empower local stakeholders, calling the reform “essential for the long-term viability of Polynesian pearl farming.”

In contrast, the Tahoera’a huiraatira group expressed reservations, supporting certain provisions while raising concerns. Monique Richeton of the orange party criticized the elimination of systematic pearl inspections, arguing this could undermine product traceability and sector competitiveness. She contended the government appeared to be restricting pearl trade—a point that fueled heated exchanges.

Regulatory Concerns and Defense

The Competition Authority reiterated earlier warnings about potential market distortions. However, Teva Rohfritsch, Minister of the Blue Economy, staunchly defended the reform, stating it aimed to “balance production control with sector-wide support.”

Outcome and Implications

After two hours of debate, the bill passed with 29 votes in favor, 14 against, and 10 abstentions. Despite objections, the reform clears the way for stricter, more transparent regulation of French Polynesia’s pearl industry—a sector accounting for 70% of local exports and 1,300+ jobs.

In response to concerns raised by the Polynesian Competition Authority regarding the pearl farming reform, Minister Teva Rohfritsch issued a statement detailing the government’s position on several points highlighted by the Authority. The latter had identified potential competition distortions and made recommendations concerning certain provisions of the proposed bill. Below is a summary of the minister’s responses to the key issues addressed.

Consultation and Timelines

The government justifies the relatively tight deadlines by the need to submit a finalized bill for consultation. It emphasizes the importance of achieving broad consensus among professionals and elected officials, while welcoming the Authority’s prompt feedback despite time constraints.

Reform Objectives

The minister reiterates that the primary goal of the reform is to regulate production and enhance the value of Tahitian pearls, while preserving the environment and adopting sustainable practices. He notes that existing regulations have failed to reverse the decline in pearl values and highlights lagoon degradation, calling for necessary reforms to ensure a more responsible future.

Competition Analysis

Regarding the Authority’s concerns about competition distortions, the government clarifies that the new regulations prioritize ecological considerations. Criteria for administrative permits are designed to protect natural resources and lagoons while minimizing market distortions.

Regulation of Pearl Farming Professions

The minister explains that the proposed framework aims to professionalize the sector, particularly by ensuring product traceability, without imposing excessive control over commercial transactions. Market standards and buyer expectations will dictate requirements to ensure responsible and transparent management.

Implementation of Quotas

The government acknowledges shortcomings in communicating quota-setting rules during technical hearings. It specifies that quotas are calculated based on occupied surface areas and apply equally to all farms.

Quality Standards Revision

The government supports not rigidly classifying pearls in the law, arguing that flexibility will better meet market demands. It also proposes labeling pearl products to recognize regional specificities and enhance local production value.

New Governance Structure

On governance, the government stresses that committee composition will be balanced, ensuring representation from all sector stakeholders. These advisory bodies will make objective and transparent decisions. The Pearl Farming Council will propose quotas, which will then be finalized by ministerial decree.

Conclusion and Remarks on the Authority

The government reaffirms that the reform aims not to burden regulations but to address new challenges in sustainable resource management. It emphasizes the need for constructive dialogue among sector players and proposes local platforms to strengthen communication. Lastly, the government contends that the Competition Authority overstepped its mandate by commenting on international trade and quality standards, which fall outside its jurisdiction.

The Competition Authority recently issued a critical opinion regarding the proposed local government bill to reform pearl farming regulations in French Polynesia. In its statement, the Authority highlights several potential competition distortions and proposes recommendations to address these issues. The bill will be reviewed this Tuesday by assembly representatives, who must examine the implications of these legislative revisions for the entire pearl sector.

Assembly debates will focus on regulations concerning production, marketing of pearl and mother-of-pearl products, as well as sector entry conditions. In its analysis, the Polynesian Competition Authority emphasized the need for earlier consultation, stating that prior discussions would have allowed for a more thorough study of the project’s competitive impacts. It particularly criticized certain proposals in the bill, including market access regulation, production quotas, and new licensing requirements for pearl farming activities.

Among the main reservations raised, the Authority recommends revising ecological and management caps, which it considers favorable to existing operators at the expense of new market entrants. Additionally, the failure to submit implementing decrees was seen as a significant shortcoming, leaving uncertainty about the new rules’ impact on competition.

The pearl farming reform, a key sector of Polynesia’s economy, is the subject of intense debate, and the bill’s review may lead to adjustments based on discussions among various political and economic stakeholders. The objective remains to ensure a competitive pearl sector while addressing the environmental and economic challenges of French Polynesia.

French Polynesia’s Minister of the Blue Economy, Teva Rohfritsch, officially concluded the inaugural Pearl Forum held October 20-21 at the CCISM (Chamber of Commerce, Industry, Services and Skilled Trades) amphitheater in Papeete. Organized by the Tahitian Pearl Association of French Polynesia (TPAFP) under President Aline Baldassari-Bernard, with support from CCISM and Air Tahiti Nui, the event gathered nearly 100 pearl industry professionals.

Over two days of intensive discussions, eight speakers addressed critical themes spanning R&D, environmental and health monitoring, to pearl marketing strategies. The North American market received special focus through presentations by renowned American gemologist Étienne Perret.

In his closing address, Minister Rohfritsch outlined key elements of the proposed pearl sector reform, emphasizing:

• Production regulation through national quotas
• Classification modernization to meet international standards
• Enhanced oversight of industry stakeholders
• Sustainable practices including lagoon preservation and waste recycling

This ambitious reform aims to modernize French Polynesia’s pearl industry while ensuring its long-term viability amid current economic and environmental challenges.

The Pearl Forum served as a vital platform for professionals to exchange ideas, explore innovation pathways, and collectively commit to building a sustainable future for Polynesia’s pearl industry.

Under the leadership of Professor Nabila Gaertner-Mazouni, a comprehensive and accessible guide has just been produced to facilitate pearl oyster farming in French Polynesia. This collaborative project, developed with numerous scientific partners, represents a major step forward in knowledge transfer to pearl farmers.

A marine ecology professor at the University of French Polynesia and researcher at the “Oceanic Island Ecosystems” Joint Research Unit (UMR-EIO), Gaertner-Mazouni explains the goal was to make scientific knowledge accessible and directly applicable in the field.

The result of several years’ work under the ANR-funded Polyperl research program, this guide celebrates collective effort while providing tangible feedback to pearl farmers who were actively involved in the research.

Structured around thirty practical fact sheets, the publication covers all essential aspects of pearl farming: industry overview, administrative procedures for becoming a producer, health monitoring, diving safety, waste management, oyster collection, pearl oyster cultivation, grafting (the key pearl production stage), and a socioeconomic analysis of the sector.

“We provide recommendations and clarify certain regulatory points, but without imposing obligations,” emphasizes Gaertner-Mazouni. Designed for all industry professionals, the guide will soon be distributed across the islands and presented to participants of the Pearl Forum opening today at Papeete’s CCISM.

An ambitious reform of Polynesia’s pearl industry has just been adopted after months of negotiations between sector professionals and the Minister of Pearl Farming. This restructuring, which will take effect in January, marks a decisive turning point for this iconic industry in French Polynesia.

At the heart of this overhaul is the abandonment of the mandatory pearl certification system, deemed “obsolete” and “punitive” by many industry players. This 2005 system will be replaced by a quota scheme aimed at better regulating production while giving pearl farmers more freedom in their commercial strategies.

“We want to be able to sell more pearls. Before, there were strict controls on the pearl’s nacre thickness and appearance, which were really penalizing for producers and traders,” explains Aline Baldassari-Bernard, president of the Professional Pearl Producers’ Union. “This 2005 classification had become unbearable—it was completely outdated.”

This reform comes amid concerning economic conditions for the sector. The latest figures from French Polynesia’s Institute of Statistics reveal a drastic drop in raw pearl exports in April, with a 65% decline in value, highlighting the urgent need for restructuring.

Teva Rohfritsch, Minister of Pearl Farming, emphasizes the philosophy behind the reform: “The spirit of this text is about empowering industry stakeholders, with a redefinition of the administration’s role and greater responsibility for professionals.” However, he clarifies that “the option to obtain free certification of nacre thickness from the Marine Resources Department” remains for those who wish to use it as a selling point.

The introduction of quotas is another major innovation of this reform. Managed by local committees, these quotas will not only allow precise quantification of pearl production—a previously unknown statistic—but also incorporate environmental criteria to preserve resources.

Other key measures in this regulatory overhaul include professionalizing the sector through the introduction of professional licenses, implementing a pearl product traceability system, and establishing a Pearl Farming Council.

The draft law still has several steps to complete before its expected implementation on January 1: finalizing the text, presenting it to the Council of Ministers, and then review by the CESC and the French Polynesian Assembly. Nevertheless, industry professionals appear confident in the outcome of this process and the anticipated benefits of this regulated liberalization.

An ambitious draft law aimed at revitalizing Polynesia’s pearl industry is currently being prepared by the local government.

Presented Thursday to professional organizations in the sector, this legislative text notably proposes the establishment of a rigorous certification system, integrated into a “quality label” for Tahitian pearls.

This strategic initiative received favorable feedback from industry stakeholders during a meeting chaired by the Polynesian government leader and the Minister of the Blue Economy. “All unanimously agree that the quality of Tahitian cultured pearls must be the priority criterion for enhancing this product’s value, both in local and international markets,” states an official presidential communiqué.

In a global context of increasing competition, this certification appears as an essential lever to distinguish Polynesian pearls in international markets. The stated objectives are threefold:

1. Restore the prestigious image of Tahitian pearls
2. Further professionalize the industry
3. Effectively structure this crucial economic sector for the archipelago

The draft law also includes the implementation of a quota system to regulate production. This overall quota, proposed by the Pearl Farming Council, will then be allocated individually based on several criteria:

• Environmental and health standards
• Compliance with production and marketing best practices
• Regulatory conformity

This approach aligns with a long-term vision of sustainable development, combining quality requirements with natural resource preservation. Discussions will continue next week to refine the practical implementation modalities of this system, which could profoundly transform Polynesia’s pearl industry landscape.