This article addresses the impacts of the carding system (green, yellow, red) of the European Union (EU) Regulation on illegal, unreported and unregulated (IUU) fishing on the fisheries laws of third countries. Specifically, it analyzes Thailand's national legal reforms, which followed interactions between the EU and Thailand during the yellow card period. Building on past research on the EU's use of market power to exert regulatory influence on third countries, the article explores other factors that might encourage third countries to engage in national regulatory reforms: the EU's powers of expertise, monitoring, and agenda-setting. Finally, the article also considers the legitimacy of the EU's regulatory power over third countries.

Illegal, unreported and unregulated (IUU) fishing is a global problem, which threatens marine ecosystems in addition to putting food security and regional stability at risk. It is often linked to major human rights violations and even organized crime. Legal measures, such as introducing monitoring and surveillance systems or denying services to vessels engaged in IUU fishing, are often implemented at national and international levels to combat such practices. Academics and economists have suggested that IUU fishing might be discouraged equally well by taking the profit out of it. Building on this premise, this article analyzes the extent to which the availability of liability insurance contributes to the problem of IUU fishing. To this end, an empirical study has been carried out, which supports the contention that vessels suspected of involvement in IUU fishing have no serious difficulty in obtaining liability insurance from the market and insurance sector, thereby inadvertently facilitating IUU fishing. The authors conclude that to deter IUU fishing, access to insurance for those involved in it should be restricted. Some success can be achieved if certain steps are taken to improve the risk assessment procedures of underwriters. However, it is advocated that the most effective approach would be the reform of European Union or domestic legislation and putting providers of liability insurance under a clear positive obligation to refuse cover to those involved in IUU fishing.