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WTO - EU tables proposal for sustainable fishing

The EU has today tabled a proposal to the WTO to ban all subsidies which cause overcapacity in the fisheries sector. In line with the EU's internal fisheries reform adopted last December, today's proposal to the WTO calls for international action to put an end to overfishing.

EU Trade Commissioner Pascal Lamy said: "This is another example of the EU's commitment to sustainable development, a key goal of the Doha Development Agenda. By banning these subsidies today, we can indeed help to ensure a sustainable future for fishermen around the world". EU Farm and Fisheries Commissioner Franz Fischler said: "In its internal reform, the EU recognised the link between subsidies and the overcapacity which exists in the fisheries sector and that measures need to be taken to ensure a balance between the fishing fleets and the resources available. The solution to deal with this problem is simple: the complete ban of all subsidies which enhance capacity."


The EU paper in detail

Under the EU proposal capacity-enhancing subsidies should be prohibited, i.e:

• Subsidies for marine fishing fleet renewal (e.g. construction of vessels, increase in fishing capacity); and
  
  
• Subsidies for the permanent transfer of fishing vessels to third countries, including through the creation of joint enterprises with third country partners.

On the other hand, subsidies aimed at reducing fishing capacity, and mitigating negative social and economic consequences of the restructuring of the fisheries sector should be considered permitted and therefore non-actionable:

• Subsidies to support the retraining of fishermen, early retirement schemes and diversification.
  
  
• Limited subsidies for modernisation of fishing vessels to improve safety, product quality or working conditions or to promote more environmentally friendly fishing methods. However, any such modernisation must not increase the ability of the vessel to catch fish.
  
  
• Subsidies to fishermen and vessel owners who have to temporarily stop their fishing activity, when stoppages are due to unforeseeable circumstances such as natural disasters, or in the framework of tie-up schemes linked to permanent capacity reduction measures in the context of recovery plans for overexploited fish stocks.
  
  
• Subsidies for the scrapping of vessels and the withdrawal of capacity.

Both of these lists would be subject to revision, to consider whether they should be modified to further advance the ultimate aim, which is to match capacity to the available fish. In this respect, the work of relevant international organisations, such as the UN Food and Agriculture Organisation (FAO) and/or international fisheries management bodies, could be taken into account.

Under the EU proposal transparency is greatly improved: the status of permitted subsides is linked to the obligation to notify them.


Resource management

The EU paper deals with tightening disciplines on subsidies, which is at the heart of the WTO negotiations. The paper also underlines the importance of resource management but it points to the work already being carried out by organisations such as FAO, OECD and UNEP. The latter are well placed to assessing questions such as assessing the level of stocks, setting annual catch plans on this basis, and policing the waters (of the coastal states) in order to prevent illegal and unreported fishing.


Background

The Doha Ministerial Declaration of 2001 explicitly called for negotiations aimed at clarifying and improving WTO disciplines on fisheries subsidies. The mandate reflects the concerns of the potentially harmful trade, developmental and environmental effects of subsidies to the fisheries sector, and the benefits that stronger WTO disciplines would achieve.

The estimates on the global amounts of fisheries subsidies vary. The following estimates have been presented in the Rules Group:

According to the World Bank, global fisheries subsidies vary between $14 to $20 billion which would approximate 20% to 25% of turnover in this sector. The OECD and APEC consider them somewhat smaller at just over $12 billion or 17% of turnover.

An 1999 OECD study estimated that the amount of subsidies was just short of $6 billion and broken down as follows: EC$1.2 billion, US $1.1 billion, Japan $2.5 billion, Canada $0.5 billion, Korea $0.4 billion.


For more information:

http://trade-info.cec.eu.int/europa/2001newround/index_en.php

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