News and AnalysisVolume 11Number 6 • October 2007

Fisheries Update


Wrapping up a week of discussions on fisheries subsidies on 28 September, chair Guillermo Valles Galmés of the WTO negotiating group on rules said there was ‘near-consensus’ on the prohibition of measures that promote fleet overcapacity and overfishing.

A large number Members praised a joint submission by Argentina and Brazil, which spelled out exceptions to the general prohibition of subsidisation, available to developing countries under special and differential treatment (TN/RL/ GEN/151). The proposal combines previous papers by the two countries into a single draft legal text that could be inserted into future WTO disciplines on fisheries subsidies. Developing countries would be allowed to subsidise the construction and repair of fishing vessels and support fishing fleets with fuel or ice, so long as this only exploits non-endangered species in national waters. They could also offer government support for filling fishing quotas agreed with a regional fisheries management organisation based on international standards. Subsidies for fishing activities related to the subsistence and livelihood of fishermen and their families would likewise be permitted.

Chile, China, Costa Rica, the EU, India, Thailand and the US and were among the many delegations to express general agreement with the paper. Australia, the EU and New Zealand did, however, call for additional clarifications to prevent abuse of the special and differential treatment provisions. The US said the paper was ‘very valuable’, but regretted its omission of specific exceptions for small and vulnerable economies.

Norway objected to allowing developing countries to subsidise fishing vessels for use in the high seas, while Japan expressed reservations about permitting them to subsidise large fishing vessels. Chair Valles is expected to release a draft negotiating text on fisheries disciplines once the agriculture and NAMA chairs have issued their revised modalities papers.