Bridges Trade BioRes • Volume 3 • Number 12 • 30th June 2003
NEW WTO PROPOSAL FROM CHILE ON FISHERIES SUBSIDIES
NEW WTO PROPOSAL FROM CHILE ON FISHERIES SUBSIDIES
Chile — a member of the "Friends of Fish" group, which also includes the US, Argentina, Iceland, New Zealand, Norway and Peru — presented a new proposal to the WTO Negotiating Group on Rules (18-19 June) on possible approaches to improved disciplines on fisheries subsidies (TN/RL/W/115). The paper identifies fisheries resources as a classic example of the ‘tragedy of the commons,’ and observes that fisheries subsidies act as a barrier to trade to non-subsidising countries, as these countries cannot participate in the exploitation of shared, and sometimes their own, fishery resources on equal terms. The subsidisation of fleets, allowing them to exploit fish stocks under pressure, also has a negative impact on conservation measures put into place by other WTO Members.
To address these problems, and considering submissions previously made by the US (see BRIDGES Trade BioRes, 3 April 2003) and the EU (see BRIDGES Trade BioRes, 15 May 2003), the paper outlines a "red box" of banned fisheries subsidies and an "amber box" of subsidies that would be allowed as long as notification requirements were fulfilled. The "red box" of banned subsidies would include all subsidies that promote overcapacity and overfishing, such as subsidies to: transfer a country’s ships to the high seas or the local waters of another country; purchase new or used ships; modernise the fleet; and reduce the costs of production factors. Subsidies in the form of positive discrimination in tax treatment or access to credit would also be banned. The "amber box" would include all other subsidies that do not cause injury to other Members and have been duly notified. These subsidies would include social subsidies designed to assist small-scale fisheries and coastal communities, and to improve fisheries management to ensure the sustainability of the fisheries.
During the Negotiating Group meeting, members of the "Friends of Fish" group supported the proposal from Chile, and Members briefly discussed technical details related to the notification requirement. Japan and Korea, who the Friends of Fish say provide their fishing fleets with substantial capacity-linked subsidies, retained a cautious stance.
The next, and final meeting pre-Cancun of the Negotiating Group on Rules, will be held from 21-23 July. An informal meeting is taking place on 25 June to consider the Chair’s report to Cancun on the status of discussions. The Trade Negotiations Committee will consider this report on 14 July.
ICTSD reporting.