Bridges Trade BioRes • Volume 4 • Number 11 • 11th June 2004
JAPAN AND WWF ENGAGE IN FISHERIES SUBSIDIES DISCUSSION
JAPAN AND WWF ENGAGE IN FISHERIES SUBSIDIES DISCUSSION
The WTO Negotiating Group on Rules, which focuses on the review and improvement of WTO rules that govern issues such as dumping, antidumping measures, subsidies and countervailing measures, met from 7-8 June to consider, among other things, a surprise proposal by Japan focusing on how to discipline fisheries subsidies. As a contribution to the process, WWF simultaneously launched a new book featuring innovative ideas on how fisheries subsidies could be changed to be more supportive of sustainable development.
Japan proposes a bottom-up approach
In its proposal (TN/RL/W/159), Japan stressed that the task of the Negotiating Group was to clarify and improve WTO disciplines relating to fisheries subsidies, to prohibit "really problematic" subsidies driving illegal, unreported and unregulated (IUU) fishing and leading to overcapacity; ensure sustainable development; take into account the importance of the fishery sector to developing countries; ensure transparency; and encourage cooperation with other international organisations. In this regard, Japan called for a "balanced approach," rejecting a proposal tabled by New Zealand in the last meeting of the Negotiating Group (see BRIDGES Trade BioRes, 30 April 2004).
Japan, on the other hand, supported a bottom-up approach to defining harmful fisheries subsidies. While problematic subsidies should be banned, others, which served to promote sustainable development in the fishery sector, should be allowed. Japan also supported further discussion of notification requirements and of special and differential (S&D) treatment for developing countries, noting however the diverse interests and situations among developing countries. The Japanese paper also highlighted the situation in Japan regarding fisheries, and fisheries subsidies. Japan made the point that although it subsidises its fishing fleet heavily, most of its subsidies are not trade distorting, and Japan has no export subsidies in the fisheries sector.
At the meeting, the "Friends of Fish" group, including the US, Iceland, Chile, New Zealand, Norway and Peru, which traditionally has taken a proactive approach on disciplining subsidies, also welcomed the engagement of Japan in this area. New Zealand was more cautious, stressing that Japan proposed an overly strong focus on overcapacity, and downplayed other important factors, including price support, operating costs and infrastructure. In fact, New Zealand said 90 percent of Japanese fisheries subsidies would be exempt from any reduction commitments under the proposal. The EC, which only has taken a proactive approach to disciplining subsidies over the last year, also welcomed the Japanese proposal, but felt that Japan would have to move further in its position to ensure sustainability. China supported the proposal to use a positive, rather than negative list approach, and said it would like to see further discussion of S&D.
WWF bringing new ideas to the subsidies discussion
Timed to coincide with the Rules Negotiating Group, environmental group WWF released a detailed position paper, entitled "Healthy Fisheries, Sustainable Trade: Crafting New Rules on Fishing Subsidies in the WTO", which proposes specific changes to WTO rules, in order to eliminate subsidies that drive overfishing. The research feeding into the book took place over the past two years and involved extensive consultations with all players in the field. In terms of solutions, WWF proposes a number of new ideas, including suggestions to: regulate subsidies programmes on a fishery-by-fishery basis; find a balanced solution with regard to the special needs of developing countries; institute a bold institutional reform, allowing the WTO to share authority for regulating fishing subsidies with intergovernmental bodies such as the FAO and regional fisheries management organisations. Commenting on the current situation, Simon Cripps, Director of WWF’s Global Marine Programme, said "It’s time for the WTO to move beyond its traditional preoccupation with the interests of the export-oriented business sector. Fishermen in every ocean are watching their catches decline while governments hand out the kind of irrational subsidies the WTO was created to curb".
ICTSD reporting; "WTO Fishing Subsidies Negotiations at a Critical Point: WWF Tables Detailed Proposal as WTO Talks Progress," WWF RELEASE, 8 June 2004.