Bridges Weekly Trade News Digest • Volume 8 • Number 20 • 9th June 2004
Japan Proposes Disciplining Fisheries Subsidies
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, new developments in the area of fisheries subsidies. Topping the agenda at the meeting was a surprise proposal by Japan focusing on how to discipline fisheries subsidies.
In its proposal (TN/RL/W/159, available at http://docsonline.wto.org), 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 (a ‘red-light’ category of subsidy); ensure sustainable development (a ‘green-light’ category); 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. New Zealand had proposed a blanket ban on all subsidies, with exceptions defined through the negotiating process (see BRIDGES Weekly, 28 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, with China being the world’s largest fishery producer. The Japanese paper also highlighted the situation in Japan regarding fisheries, and fisheries subsidies. Japan made that 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, Korea — which, like Japan, traditionally has taken a position against disciplining subsidies, arguing that any problem in the sector is a management problem — welcomed the Japanese proposal. 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. The US noted some similarities between the Japanese paper and the one table by New Zealand. 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.
Chile noted overall progress in the negotiations, and highlighted similarities between the major proposals on the table.
Timed to coincide with the Rules Negotiating Group, environmental group WWF released a new book, 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 (see related article, this issue).
ICTSD reporting.