Fisheries Fisheries Subsidies and Subsidies and Developing Developing CountriesCountries

Sebastian MathewSebastian Mathew

International Collective International Collective in Support of in Support of

Fishworkers (ICSF)Fishworkers (ICSF)

Importance of fisheries to Importance of fisheries to developing countriesdeveloping countries

An important source of employment, An important source of employment, income, food security and foreign income, food security and foreign exchangeexchange

36 million workers in the fisheries and 36 million workers in the fisheries and aquaculture sector (ILO), worldwide, of aquaculture sector (ILO), worldwide, of which 95% are in developing countrieswhich 95% are in developing countries

Over 60% of global fish production and Over 60% of global fish production and more than 50% of global fish exports more than 50% of global fish exports originate from developing countries (FAO)originate from developing countries (FAO)

Doha Declaration, Doha Declaration, November 2001November 2001

““Clarify and improve WTO Clarify and improve WTO disciplines on fisheries subsidies disciplines on fisheries subsidies taking into account the importance taking into account the importance of this sector to developing of this sector to developing countries.” countries.”

Ongoing debate at the Ongoing debate at the WTO Negotiating Group on WTO Negotiating Group on RulesRules

What should be the scope of What should be the scope of fisheries subsidies to be negotiated fisheries subsidies to be negotiated atat the the WTO? Should SCM Rules WTO? Should SCM Rules address negative trade, address negative trade, environment and development environment and development impactsimpacts of fisheries subsidies of fisheries subsidies in in addition to market distortions? addition to market distortions?

Fisheries Subsidies in Fisheries Subsidies in Developing CountriesDeveloping Countries

Welfare of fishing community (housing, Welfare of fishing community (housing, sanitation, electricity, drinking water); sanitation, electricity, drinking water);

Income support to fishers (allowance for Income support to fishers (allowance for lean season/closed season/training lean season/closed season/training period, insurance premia);period, insurance premia);

Tax preferences (rebates on fuel and Tax preferences (rebates on fuel and other inputs into fishing);other inputs into fishing);

Subsidization of capital costs (e.g. Subsidization of capital costs (e.g. Mechanization/acquisition of fishing Mechanization/acquisition of fishing craft, gear, engine and other inputs);craft, gear, engine and other inputs);

Fisheries Subsidies in Fisheries Subsidies in Developing Countries 2Developing Countries 2

Subsidies to fisheries infrastructure Subsidies to fisheries infrastructure (fishing harbours; quality control, (fishing harbours; quality control, etc)etc)

Subsidies to fisheries conservation Subsidies to fisheries conservation and management (resource and management (resource assessment, resource enhancement, assessment, resource enhancement, habitat protection, protection of habitat protection, protection of endangered species, MCS, etc)endangered species, MCS, etc)

Potential capacity/effort-Potential capacity/effort-enhancing Subsidiesenhancing Subsidies

Tax preferences (often recurring)Tax preferences (often recurring) Subsidies to capital costsSubsidies to capital costs Subsidies to fisheries infrastructureSubsidies to fisheries infrastructure

Disciplining Disciplining capacity/effort-enhancing capacity/effort-enhancing subsidies at WTOsubsidies at WTO

Amending existing notification procedure Amending existing notification procedure in SCM Agreement to report on all in SCM Agreement to report on all fisheries subsidiesfisheries subsidies

Linkage between potential capacity/effort-Linkage between potential capacity/effort-enhancing subsidies, fishing capacity, enhancing subsidies, fishing capacity, fishing effort and overfishing:fishing effort and overfishing: Burden of proof on Complaining Member vis-à-Burden of proof on Complaining Member vis-à-

vis LDCs and designated developing countriesvis LDCs and designated developing countries Burden of proof on Subsidizing Member vis-à-Burden of proof on Subsidizing Member vis-à-

vis other countries (developed and advanced vis other countries (developed and advanced developing countries)developing countries)

Disciplining Disciplining capacity/effort-enhancing capacity/effort-enhancing subsidies at WTO-2subsidies at WTO-2

De minimisDe minimis for capacity-enhancing for capacity-enhancing subsidies for LDCs and designated subsidies for LDCs and designated developing countries at a level higher developing countries at a level higher than the than the de minimis de minimis for other for other countriescountries

Negotiate different time-frames to Negotiate different time-frames to phase out fisheries subsidies that are phase out fisheries subsidies that are proved to be capacity-enhancing for proved to be capacity-enhancing for the above two categories of countriesthe above two categories of countries

Reintroducing non-Reintroducing non-actionable subsidiesactionable subsidies

Non-actionable subsidies could include: Non-actionable subsidies could include: retraining fishers; fleet diversification; retraining fishers; fleet diversification; improving safety and working conditions; improving safety and working conditions; switching over to more selective fishing switching over to more selective fishing gear and practices; assistance during gear and practices; assistance during natural calamities; scrapping of vessels natural calamities; scrapping of vessels and withdrawal of capacity; improving and withdrawal of capacity; improving product quality (EU proposal); assistance product quality (EU proposal); assistance during stock decline due to natural factors; during stock decline due to natural factors; fisheries conservation and management; fisheries conservation and management; energy-efficient propulsion techniques; etc. energy-efficient propulsion techniques; etc.

Proposed scope of Proposed scope of disciplining fisheries disciplining fisheries subsidies at WTOsubsidies at WTO

Should be confined only to production Should be confined only to production and trade distorting subsidiesand trade distorting subsidies

Financial contribution that does not lead Financial contribution that does not lead to production and trade distortions and to production and trade distortions and where the benefits accrue to human where the benefits accrue to human development or the well-being of fishers development or the well-being of fishers and fishing communities could be and fishing communities could be removed from the scope of fisheries removed from the scope of fisheries subsidiessubsidies

A caveat for considerationA caveat for consideration

Disciplining production distorting Disciplining production distorting subsidies would broaden the scope subsidies would broaden the scope of SCM Agreement to look not only of SCM Agreement to look not only at ‘fish and fish products’ but also at ‘fish and fish products’ but also at ‘fishing methods’ with several at ‘fishing methods’ with several implications including link up with implications including link up with MEAs in fisheriesMEAs in fisheries

In conclusionIn conclusion Given the complexity of marine fisheries, a Given the complexity of marine fisheries, a

“red box” category of fisheries subsidies “red box” category of fisheries subsidies may not be advisedmay not be advised

““Amber box”-- both “dark amber” and “light Amber box”-- both “dark amber” and “light amber”– and “Green box” categories amber”– and “Green box” categories should be considered in fisheriesshould be considered in fisheries

Financial contribution to human Financial contribution to human development of fishers and fishing development of fishers and fishing communities, especially in developing communities, especially in developing countries, even if it is specific, should not countries, even if it is specific, should not be regarded as subsidiesbe regarded as subsidies

Thank youThank you