Bridges Weekly Trade News Digest • Volume 7 • Number 11 • 26th March 2003
Rules: Members Consider Options For Addressing Fisheries Subsidies, Anti-Dumping Issues
Meeting from 19-20 March, the WTO Negotiating Group on Rules considered a new US paper on fisheries subsidies, and discussed several new submissions on anti-dumping. The US — part of the "Friends of Fish" group that also includes Argentina, Chile, Iceland, New Zealand, Norway and Peru — circulated a paper on fisheries subsidies prior to the meeting, and engaged in informal discussions with a number of Members, as well as with NGOs (TN/RL/W/77, searchable at http://docsonline.wto.org). The submission was intended as a move from simply reviewing the problem of fisheries subsidies to considering possible solutions, and followed a submission on a negotiating platform by the "Friends" group at the last Rules Negotiating Group meeting (see BRIDGES Weekly, 12 February 2003). The US paper presents several ideas for initial discussion, including expanding the category of prohibited "red light" subsidies under the Agreement on Subsidies and Countervailing Measures (SCM) to include fisheries subsidies that "directly promote overcapacity and over-fishing, or have other direct trade-distorting effects". It further suggests creating a "dark amber" category of fisheries subsidies that would be presumed to be harmful, unless the subsidising government could demonstrate that the subsidy did not lead to overcapacity or over-fishing, nor other adverse trade effects. The paper also proposes improved notifications of fisheries subsidy programmes under WTO rules.
Ambassador Linnet Deily, presenting the US paper at the rules meeting, said Members have "an historic opportunity" to harness trade liberalisation in order to advance sustainable development. According to scientific studies, 50 percent of marine fisheries are fully exploited, while 20 percent are over-exploited. The US estimates global fishing subsidies at US$10-$15 billion a year. Deily called for closer cooperation with the UN Food and Agriculture Organisation (FAO) and NGOs in the ongoing WTO negotiations on fisheries subsidies. While her paper received support from Norway, Peru, Iceland, Chile, Australia, Argentina, EC, New Zealand, the Philippines and Mauritius, Korea continued to take another approach, presenting its own submission (TN/RL/W/69), which states that subsidies cannot be linked to the depletion of fish stocks. Japan supported Korea, while China supported the US proposal, stressing, however, that fish farming should not be included under new rules. The EU is taking a low profile in the negotiations for the time being, as its internal fisheries reform is ongoing, but is expected to submit its own paper on fisheries subsidies to the WTO in May. A representative of an environmental NGO indicated support for the US paper, noting that the debate in the Rules Negotiating Group is moving beyond the issue of the group’s mandate to concrete proposals on how to address fisheries subsidies.
New submissions tabled on anti-dumping
Discussions on anti-dumping continued to divide WTO Members at the Negotiating Group meeting. While 15 "Friends of Anti-Dumping Negotiations" want to change WTO rules to prevent abuse of anti-dumping measures and burdensome or unnecessary investigations, the US wishes to maintain maximum flexibility in the use of trade remedies and focuses on closing loopholes in the existing anti-dumping agreement.
During the Rules Negotiating Group meeting, the EU submitted a paper containing a proposal for fast-track procedures with regard to unjustified anti-dumping and countervailing investigations (TN/RL/W/67). The "Friends of Anti-Dumping Negotiations" — Brazil, Chile, Colombia, Costa Rica, Israel, Japan, Korea, Norway, Chinese Taipei, Switzerland, Thailand, Turkey and Hong Kong, China — made another proposal (TN/RLW/76). Their proposal suggests tightening the use of sunset reviews, to prevent the extension of anti-dumping duty orders beyond the five years set out under the WTO Antidumping Agreement. The ‘Friends’ groups said that in practice "an expansive use of the exception [sunset reviews to continue the order] turns the continuation of the order into a de facto practice". The US outrightly dismissed the proposal at the meeting.
The US submitted a paper on clarifying and improving subsidies disciplines, suggesting that the category of prohibited government subsidies be extended to include large domestic subsidies, subsidies to cover operating losses and government debt forgiveness (TN/RL/W/78). A second submission proposed clarifying issues under the anti-dumping and subsidies agreements, including investigations on perishable goods and persistently dumped and subsidised imports of certain products (TN/RL/W/72). The US in the latter case referred, inter alia, to its steel industry.
Egypt, following the line taken by the US rather than the "Friends of Anti-Dumping Negotiations," stated that dumping, not measures to prevent dumping, are trade disruptive, and more rules making anti- dumping measures more complicated would be counterproductive (TN/RL/W/27). This paper, submitted by Egypt in February, stressed that many ‘new users’ of anti-dumping measures were developing countries that would find it difficult and burdensome to deal with complex rules put forth by some Members on anti-dumping. China tabled its first paper on anti-dumping during the rules meeting. The paper called for stronger disciplines on anti-dumping actions, and for the removal of a clause on "non-market economy" (TN/RL/W/66).
Meanwhile, a representative of the National Foreign Trade Council (NFTC), a US business group, called on WTO Members to start from a "clean slate" in anti-dumping negotiations and to abandon the current agreement. The group has presented its proposal to US trade negotiators. The proposal suggests developing model regulations and instruments for national antidumping regimes — based on, inter alia, US regulations — that countries could implement at the national level in order to be in compliance with the WTO.
ICTSD reporting; "U.S. wants tougher trade rules for fish subsidies," REUTERS, 20 March 2003; "U.S. Proposes Tougher WTO Disciplines on Fishing Subsidies," REUTERS, 21 March 2003; "U.S. Tables Three Papers On Dumping, Subsidies In WTO Rules Group," INSIDE US TRADE, 21 March 2003; "’Friends’ Group Targets Sunset Reviews In Latest WTO Proposal on Antidumping," WTO REPORTER, 20 March 2003; "Overhaul WTO antidumping rules - US business group," REUTERS, 21 March 2003.