What is the Scarborough Shoal Issue?

Shoaling means to “become shallow”. In terms of geography, a shoal is a natural submerged ridge, rocky outcrop, atoll, sandbank or reef covered by some sand or other unconsolidated material. It rises from within the water body such as ocean to near the surface and create a danger to ships etc.

Scarborough Shoal is located in the eastern part of the South China Sea. It is uninhabited and shaped like an atoll consisting mainly of rocks and barely consists of any land except for very small islands. It is located at about 220 kilometers from the Philippines and is located inside the Exclusive Economic zone of the Philippines. Its location is much closer to the Philippines’ shore as compared to the China’s shore. It is also referred to as ‘Bajo de Masingloc’ and ‘Panatag’ by the Philippines and ‘Huangyan Island’ by China. The present name Scarborough was given after an East India company’s ship named ‘Scarborough’ got grounded on one of the rocks in the atoll.

Strategic significance and face-off

Conflicts in the South China Sea is not new as there have been disputes among the nations bordering the sea claiming islands or its surrounding waters for centuries. Already there exists dispute among nations of the South China Sea over the Spratly and Paracel islands. Scarborough Shoal, though was a bone of contention between China and Philippines since 1997, it has become the centre of controversy due to a standoff between these two countries in 2012 and subsequent imposition of restriction to access the territory by China. In 2012, a naval vessel of Philippines had found Chinese fishing boats allegedly collecting illegal marine life from the Shoal such as corals, live sharks etc. But, two Chinese surveillance vessels thwarted the attempt of the Philippines navy from taking action against their fishing vessels. For the next two months, the two countries were at a standoff, which was eased after a typhoon hit that region. Since then, access to the shoal has been restricted to others by China.

The significance of Scarborough Shoal remains in the fact that it is resources rich. The area is rich in oil, natural gas, minerals and fish. The economies and livelihoods of a large section of people in China and Philippines depend on fisheries. It is estimated that China is the largest consumer and exporter of fish. Having depleted fish stocks closer to their shores, the countries in the region venture deeper in to the South China Sea claiming territories and asserting their fishing rights in those areas.

It is estimated that the countries bordering South China Sea has a population of about 2 million people, out of which 500 million live within 100 miles of the sea coast. Not surprisingly, six countries have claimed territorial rights over the shoal namely-China, Philippines, Brunei, Malayasia, Vietnam, and Taiwan. But as of now only Philippines and China are fighting over the Shoal.

The strategic significance of the area lies in the fact that roughly half of the world’s merchant fleets pass through this area every year carrying out an estimated $5 trillion worth of trade. Also, the Scarborough Shoal, if converted in to a base can give China a strategic point to exert its influence in the entire South China Sea.

Lastly, the area is also believed to be rich in valuable oil and gas deposits. For example, the hydrocarbon deposits found in the Spratly islands is estimated to be valued at $26.3 trillion.

Dangers scarborough shoal faces environmentally

Due to climate change, there is a danger that these fishing grounds may disappear. It is said that climate change has driven the fishes away from the shoal searching for cold waters.

Recently, China has engaged in reclamation activities in the Spratly islands. It is estimated that these activities have resulted in the permanent loss of corals in that area. Similarly, if it involves in the ecological destruction of this shoal, then the environmental damage done to this pristine area will be irrecoverable and irreplaceable. Destruction will also go against article 145 of UNCLOS, which provides for the protection and conservation of marine environment and set a bad precedent for other countries to follow.

China’s stand

China has claimed that the Scarborough Shoal was a part of its territory since 960 AD. It is not surprising as China has claims over almost whole of the South China Sea. In 1947, it published a map showing South China Sea as a part of its territory. In 2009, it submitted to the UN a 9-dash line, which included Scarborough Shoal as its territory. China feels that if it loses the Shoal it will not only lose natural resources the region has to offer but also the strategic significance the Shoal offers in the South China Sea.

Philippine’s stand

According to Philippines, the Shoal was part of its territory as early as the days of Spanish colonization of its territory and claims its fisherman were traditionally using the area for fishing activities. Also, the Shoal falls within its 200 nautical mile Exclusive economic Zone and under UNCLOS rules, the Shoal lies in Philippines sovereign waters. To validate its claim, in 2013, Philippines initiated proceedings against China at the International Tribunal of the Law of the sea’s (ITLOS), Permanent Court of Arbitration (PCA), which is based at The Hague.

Business communities in Philippines are worried about the standoff as China has imposed several restrictions on business activities such as restrictions on banana imports from Philippines and cancellation of several Chinese tour programmes to philippines, which are likely to hamper its tourism industry.

Status of proceedings in ITLOS

The PCA has held that it has jurisdiction in seven out of 15 submissions which Philippines has made before it regarding the South China Sea dispute. Out of seven, three submissions are related to Scarborough Shoal. The PCA ruling on this issue is expected during the summer of 2016. But, China has already stated that it would not act as per the PCA rulings and claims that it has firm sovereign rights over the area irrespective of what the PCA rules.

Strategic implications on other nations

 ASEAN Countries

The standoff between Philippines and China has implications for all the ASEAN countries due to their proximity to these countries and also of their relationships with these two countries. ASEAN nations hope to resolve the issue through negotiations in the future.

United States

Philippines have a Mutual defense Treaty with the US. According to the treaty, it is stated that both the nations would support each other if they are attacked by an external party. So if the tension escalates, the US may be brought in to the conflict. Also, US needs the cooperation of China in dealing with issues pertaining to North Korea, Iran etc. So, if the tension escalates, it would need to be seen what course the US would take.

What is the stand of India on this issue?

The Ministry of External Affairs had released a statement urging both countries to exercise restraint and resolve the issue diplomatically according to the established principles of International law.


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