Bridges Weekly Trade News Digest • Volume 9 • Number 13 • 20th April 2005
Rules: Members Discuss Anti-Dumping, Fisheries Subsidies
Fisheries subsidies and anti-dumping remained on the agenda as the Negotiating Group on Rules meeting concluded on 15 April.
After debating a Brazilian paper on fisheries-related special and differential treatment (S&D) for developing countries (see BRIDGES Weekly, 13 April 2005), Members discussed an EU paper on mechanisms for enforcing WTO fisheries subsidy disciplines (TN/RL/W/178). Drawing on its own experience, the EU suggested that the enforcement of WTO fisheries subsidies rules could be enhanced by domestic control systems in which Members formalise all fisheries subsidies in national law and make information about all subsidies awarded available to WTO Members. Alternatively, Members could notify the WTO before granting fisheries subsidies, and subject the notification to review by other Member states. Individual Members could choose between the two control mechanisms. The EU paper was met with some scepticism: Chinese Taipei commented that WTO Members might be reluctant to cede sovereignty in this manner. Many countries stated they needed more time to study it closely.
The Rules group also considered a New Zealand submission on subsidies to management services in the fisheries sector (TN/RL/GEN/36). It is generally acknowledged that these subsidies are harmless, and therefore should be allowed under WTO rules. However, some countries did disagree on the categories of subsidies for research and development (R&D) that could come under the rubric of management services. The US suggested they might submit a proposal on R&D at a later stage. The Friends of Fish, a group seeking clear disciplines on fisheries subsidies, may also make a submission on subsidies to infrastructure (such as ports, cold storage, etc.). (For more information on the fisheries subsidies disciplines see BRIDGES Trade BioRes, 15 April 2005; and BRIDGES Weekly, 13 April 2005)
Anti-Dumping Proposals On Public Interest
The Rules session also saw Hong Kong, China present a proposal on "Public Interest" (TN/RL/W/174) on behalf of the Friends of Anti-Dumping Negotiations (FAN), a group seeking to tighten rules on the application of anti-dumping measures that includes Chile, Costa Rica, Hong Kong China, Israel, Japan, Korea, Norway, Switzerland, Chinese Taipei, and Thailand.
Drawing attention to the widespread economic impacts of anti-dumping measures, the FAN called for all concerned stakeholders such as consumer groups, producers and importers to be involved before a decision to impose anti-dumping measures is taken. While the EU strongly supported the proposal, other Members including Peru, Brazil and India were concerned about the possible cost and time implications of the idea. The US also supported this concern and questioned the impact that such a policy would have on the affected domestic industry.
Taking up more time than the two days originally set out, the meeting resumed on Friday 15 April to deal with a Brazilian paper on "Treatment of Government Support for Export Credits and Guarantees Under the Agreement on Subsidies and Countervailing Measures" (TN/RL/W/177). Brazil claimed that current Organisation for Economic Co-operation and Development (OECD) arrangements on export credits could potentially come into conflict with WTO obligations, and proposed specific language for the Agreement of Subsidies and Countervailing Measures that would prevent export credits from hurting developing country Members of the WTO. Export credits were also the issue of a paper submitted by Australia (TN/RL/GEN/34).
The next meeting of the Negotiating Group on Rules is scheduled for 30 May - 3 June.
ICTSD reporting.