Bridges Trade BioResVolume 6Number 10 • 2nd June 2006

FISHERIES UPDATE: WTO, EU, FISH STOCKS


FISHERIES UPDATE: WTO, EU, FISH STOCKS

Proponents elaborate on WTO fish liberalisation proposal

Canada, Iceland, New Zealand, Norway, Singapore, Thailand, Panama and Oman on 22 May presented a new version of their sectoral proposal on reductions in tariffs on fish products to the WTO Negotiating Group on Non-Agricultural Market Access (NAMA) (TN/MA/W/63/Add.1). The new text, which includes for the first time, the explicit support of Panama and Oman, outlines specific details and numbers ("modalities") for liberalisation (see Bridges Trade BioRes, 17 February 2006). The proposal suggests specific product coverage as well as special and differential treatment for developing countries, whereby developed countries would be expected to drop their tariff value to 0 while developing countries would only be required to reduce to a yet-to-be-determined higher value of "X". A critical mass of Members will have to support the deal, however, before the voluntary reduction goes into effect. At the meeting, developing countries generally expressed support for the removal of tariff barriers and for greater liberalisation of trade in fish and fish products in developed countries, but several of them noted they would need more information on the "X" level to which they would have to reduce their tariffs before they would sign on to the deal. Participation by countries representing 90 percent of world trade was has been proposed as the goal. The proponents of the proposal have suggested that further details will be established by 31 May and a schedule of commitments by 31 July.

Europeans Clash on Fish Subsidies

A proposal to reform the EU’s Common Fisheries Policy (CFP) to provide new funds to upgrade or expand existing fishing fleets was blocked at the EU’s Agriculture and Fisheries Council on 22 May when Britain, Germany and Belgium objected to the Euro 3.8 billion deal. Spain, France, Italy, Greece and Estonia, on the other hand, were demanding the right to upgrade their fleets and other subsidies. Controversy surrounds the proposed European Fisheries Fund (EFF) discussed at the meeting, which would provide financial support to the fisheries sector between 2007 and 2013. The EFF is scheduled to replace the Financial Instrument for Fisheries Guidance (FGIF) currently being used by the CFP at the end of 2006, so agreement on the terms of the EFF is needed before the end of the year. The scheme, which had also been rejected in 2005, was tabled at the Council meeting but quickly met with criticism from northern European countries that alleged that the proposed reinstatment of EU aid to replace engines on small-scale vessels and to modernise boats would reverse the gains from the 2002 reform of the Common Fisheries Policy. The CFP instituted a schedule to phase out capacity-enhancing subsidies for vessels to reduce over-fishing.

Northern EU members, fuelled by support from environmental groups including WWF, emphasised the negative effects of renovated and refurbished fishing fleets on dangerously low stocks of fish suffering from years of over-fishing. The EFF draft proposal, which was prepared by the European Commission and tabled by EU Commissioner Joe Borg, had targeted four areas: reducing fishing intensity and environment protection schemes, increasing fish farming and general marketing, supporting ‘collective interest’ projects such as modernising ports; and finding new markets and sustainable development of coastal areas. Trade sources raised questions regarding the impact on the proposed new EU subsidies for engine replacement and boat modernisation on the EU position in the WTO negotiations on fisheries subsidies, where proposals have been tabled to restrict capacity-enhancing fisheries subsidies.

EU-Morocco fish agreement ratified

The European Parliament ratified a 144 million euro fisheries access agreement on 22 May, overcoming legal jurisdiction concerns over the territory of Western Sahara. The deal ran into controversy (see Bridges Trade BioRes, 14 April 2006) because EU members differed on their understanding of Western Sahara’s legal status. The ratification of the agreement by the parliament recognises Morocco’s de facto sovereignty over Western Sahara which some states argue is questionable under international law. The agreement between the EU and Morocco will last four years and will allow 119 vessels primarily from France, Spain and Portugal to fish in Moroccan waters beginning 30 June 2006.

UN fish stocks conference addresses implementation

The Review Conference on the United Nations Fish Stocks Agreement (UNFSA), held in New York from 22-26 May, focused on assessing how well the Agreement has been implemented and how it can be better implemented in the future. While recognising that implementation has been largely successful, the conference placed emphasis for future success on a two-pronged strategy to attain its goals. Increasing membership in the and working out concrete measures for implementation, it was argued, would allow more comprehensive and in-depth realisation of the objectives of the pact. Currently there are 57 member states to the Agreement and increasing the membership would help to universalise it and to ensure successful implementation in protecting highly migratory fish stocks. Developing countries showed interest by being receptive to offers of capacity building and assistance with a view to membership in the medium term.

Both parties and non-parties participated on an equal footing; however they differed on concrete measures of implementation such as boarding and inspection. Although principles of the Agreement such as precautionary approaches to management of fish stocks and ecosystems were accepted alike by parties and non-parties, the non-parties wanted to reduce the extent to which such approaches would be accompanied by binding enforcement measures like boarding to check compliance. Parties to the Agreement, though, insisted that the Agreement would be meaningless without specific provisions directed at regulation of fishing fleets. Opposed to such measures were countries including Mexico and China who refused to become signatories unless it was rewritten.

Overall, the conference said that tougher regulatory measures should be implemented by individual states and regional fisheries management organisations (RFMOs) to ensure compliance by treaty signatories, suggesting that many RFMOs’ performance had not been impressive. Mitigation measures that were under consideration by various delegates at the conference consisted of placing limits on capacity in each fishery, tighter inspection rules at ports, better documentation concerning the origin of catches, placing independent observers on board some vessels, and requiring all fishing boats to carry satellite transponders disclosing their location to regulators. At the same time it was emphasised that the artisanal and small-scale fishing sector needs to be protected and promoted.

Daily Reporting from the UN Fish Stocks Agreement Review Conference is provided by Earth Negotiations Bulletin at http://www.iisd.ca/oceans/sfsrc/

Information on the proposed EU EFF is available at http://ec.europa.eu/comm/fisheries/news_corner/press/inf06_20_en.htm

"Preparation Agriculture/Fisheries Council of May 2006," EU, 19 May 2006; ENB Vol. 7 No. 61, 29 May 2006; "Good day for fishing as backward subsidies blocked," WWF, 23 May 2006; "Fisheries aid deal blocked in council," EURACTIV, 24 May 2006; "Green light for EU-Morocco fish deal," EUPOLITIX, 16 May 2006; "UN conference shies from rewriting fishing pact," REUTERS, 24 May 2006; "Greenpeace sees lax enforcement," REUTERS, 24 May 2006; "Artisanal, small-scale sector should be given preferential access to fisheries, ICSF tells UN conference," ICSF, 24 May 2006; "FAO launches new initiative to improve monitoring of world’s fisheries," UN, 24 May 2006.