The Hindu Business Line : ‘Give special status for fisheries sector’

Kochi, July 3 In a paper circulated by India and Indonesia at the World Trade Organisation Rules Group meeting, the importance of special and differential treatment for the fisheries sector of developing countries was highlighted. China, which had called for broad prohibition of fishing subsidies, later signed on as a co-sponsor of the paper. The draft paper prominently features exceptions to potential WTO rules on fisheries subsidy to developing countries, a report reproduced in the Journal of Seafood Exporters Association of India said.

The sponsors of the paper maintained that some of the requirements of an earlier draft on fisheries subsidies, requiring developing countries to establish formal fisheries management system, negate the special and differential treatment provisions for developing countries. It was argued that the earlier text, which was presented in November 2007, would make the special and differential treatment provisions largely unusable and would undermine the economic position of developing countries. India stated that its proposal would provide more effective and flexible treatment to developing countries.

The contentious issues between the old and new proposal are that the old proposal would require developing countries to construct fish management regimes to qualify for special and differential treatment. Meanwhile, the new proposal expects to allow developing nations to also subsidise high sea fishing. Regarding the small scale fishing sector, the new proposal would allow developing countries to subsidise vessels up to 24 metres in length instead of the 10-metre length limit in the earlier draft proposal.

Granting subsidies

Canada, Korea, Norway and Taiwan reiterated that the provisions for artisanal fleets should be included for both developing and developed countries. Japan and the EU were among the members that strongly opposed the proposal, the report said. Their primary concern was that it would allow developing nations to be exempt from certain subsidy restrictions in areas that were beyond their exclusive economic zones. On the other hand, the sponsors of the proposal argued that it was appropriate for developing countries to subsidise fishing activity on the high seas because of the benefits that developed nations have historically enjoyed from subsidised high seas fishing. However, many developing and developed countries such as Argentina, Chile and Norway opposed granting subsidies to any high sea fishing fleet.