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Sustainbility Issues in proposed fisheries disciplines on Special and Differential Treatment

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Title: Sustainbility Issues in proposed fisheries disciplines on Special and Differential Treatment


1
  • Sustainbility Issues in proposed fisheries
    disciplines on Special and Differential Treatment
    key issues for Small Island states
  • Presentation for ICTSD and UNEP Meeting on
    Fisheries, Trade and Development
  • 16th June 2010
  • By Manleen Dugal, Technical Advisor (Trade
    Policy), Diplomatic Mission of Pacific Islands
    Forum to the WTO

2
Outline
  • Links between sustainability and permissible
    subsidies in the proposed disciplines, especially
    the Chairs text
  • The case of artisanal and subsistence sector
  • The case of small scale fisheries
  • The case of industrial fisheries
  • Special characteristics of small and vulnerable
    economies
  • The SVEs proposal for additional flexibilities
    (Jan 2010)

3
Links between Sustainability and Permissible
subsidies in proposed WTO disciplines
  • PRINCIPLE for proposed Special and Differential
    Treatment Provisions in the Chairs Text and
    several Members proposals
  • Conditioning non-prohibited subsidies for
    developing countries on sustainability
    criterion, including management-related and/or
    other limitations based on geographical
    parameters and/or capacity indicators such as
    vessel size measures for domestic fishing
    capacity.
  • Exceptions to the Principle
  • Carte Blanche exemption for Least-Developed
    Country Members from the prohibition clause
    contained in Article 3.1(c) of the ASCM and
    Article I of fisheries annex.
  • Subsidies to port infrastructure, other physical
    facilities, income support and price support for
    fishers and fishers' products, permitted as long
    as fisheries management conditions are fulfilled.
  • NOTE General exemptions can also be invoked based
    on fisheries-management conditions

4
Artisanal and Small-scale Fisheries
  • The sustainable development challenge is most
    relevant when it comes to artisanal or
    subsistence sector.
  • A universal definition for artisanal and small
    scale fisheries does not exist, which complicates
    the crafting of WTO rules.
  • Refers broadly to small, underdeveloped, and
    often severely impoverished fishing communities
    whose basic survival depends on their ability to
    continue benefiting from local fisheries.
  • 95 of the 200 million people involved in fishing
    are small-scale fishers, processors and traders.
    More than 90 of people working in small-scale
    fisheries are in developing countries.

5
Artisanal and Small-scale Fisheries
  • Of the 70 share of world fish produced and
    consumed by developing countries, small-scale
    fishers account for 70 of that production.
    Small-scale fishers share of the fish produced
    and consumed by developing countries is expected
    to increase to 80 (from 70) in 2020
  • SVEs are of the view that there should be a clear
    distinction between artisanal and small scale
    fisheries and appropriate exemptions should be
    designed for both.
  • The small scale fisheries sector plays the role
    of a social safety net provider contributing
    heavily to food, nutrition and livelihood
    security.
  • In its role as an economic driver, the
    small-scale fishing sector is an important cash
    generator, has strong multiplier effects and is
    sometimes export focused.

6
Artisanal and Small-scale Fisheries
  • In the majority of SVE small scale fisheries,
    there is a small profit trade involved, in some
    cases small-scale is a part of a small productive
    chain and in several instances these small
    fisheries may also be organized into fishing
    cooperatives.
  • Thus, the development of artisanal/small scale
    fisheries is a rational undertaking for
    governments and other organisations in the
    region. These fisheries are a key entry point for
    investing in poverty reduction and human
    development

7
Built-in sustainability criterion in proposed
definitions and treatment for subsistence/artisana
l fisheries ( Chairs text, Annex VIII,
TN/RL/W/213)
  • Subsistence/artisanal sector defined by two
    criterion
  • (1) Marine wild capture fishing performed on an
    inshore basis, i.e. in the territorial sea (12
    nautical miles)
  • (2) Conducted with non-mechanized net-retrieval
  • All subsidies are permissible under the
    following conditions
  • (1)Activities carried out on their own behalf by
    fishworkers, on an individual basis which may
    include family members, or organized in
    associations
  • (2) The catch is consumed principally by the
    fishworkers and their families and the activities
    do not go beyond a small-profit trade
  • (3) There is no major employer-employee
    relationship in the activities carried out
  • Non-binding/Indicative management conditionality
    apply

8
Built-in sustainability criterion in proposed
definitions and treatment for subsistence/artisana
l fisheries ( Chairs text, Annex VIII,
TN/RL/W/213)
  • Subsistence/artisanal sector defined by two
    criterion
  • (1) Marine wild capture fishing performed on an
    inshore basis, i.e. in the territorial sea (12
    nautical miles)
  • (2) Conducted with non-mechanized net-retrieval
  • All subsidies are permissible under the
    following conditions
  • (1)Activities carried out on their own behalf by
    fishworkers, on an individual basis which may
    include family members, or organized in
    associations
  • (2) The catch is consumed principally by the
    fishworkers and their families and the activities
    do not go beyond a small-profit trade
  • (3) There is no major employer-employee
    relationship in the activities carried out
  • Non-binding/Indicative management conditionality
    apply

9
Built-in sustainability criterion in proposed
definition and treatment for small-scale
fisheries (Chairs text, Annex VIII,
TN/RL/W/213)
  • Definitions based on vessel-size criterion
  • Chairs text permits Capacity-enhancing subsidies
    (subsidies for vessel construction, repairs,
    acquisition) operating costs (e.g. fuel, bait,
    insurance, etc) only allowed for decked vessels
    that are not greater than 10 metres or 34 feet in
    length or undecked vessels of any length.
  • Previous proposals by Norway (20 metres), Japan
    (15 metres)
  • Definition based on socio economic criterion
  • Recent proposal by Brazil, India, China and
    Mexico (TN/RL/GEN 163) defines small-scale,
    artisanal as low income, resource poor or
    livelihood fishing activities, on condition
    that,
  • Activities are performed by fishworkers on
    an individual or family basis or employed by
    associations or micro-enterprises or individual
    boat owners

10
Built-in sustainability criterion in proposed
definition and treatment for industrial fisheries
( Chairs text, Annex VIII, TN/RL/W/213)
  • Definition for Industrial fishing sector
  • Vessels exclusively used for marine wild
    capture fishing activities in respect of
    identified target stocks within the developing
    country Members Exclusive Economic Zones
    ("EEZ).
  • Capacity- enhancing are permissible under the
    following conditions
  • Prior scientific stock assessment has been
    conducted in accordance with relevant
    international standards, aimed at ensuring that
    the resulting capacity does not exceed a
    sustainable level
  • Assessment has been subject to peer review in the
    relevant body of the United Nations Food and
    Agriculture Organization ("FAO"), or in another
    recognised and competent international
    organisation.

11
Special characteristics and peculiarities of SVEs
in the fisheries context
  • SVEs have a miniscule share of global marine wild
    capture ( majority less than 0.1 per cent each,
    as per 2004-2006 data by the FAO), nil or low
    magnitude of subsidies hence a negligible
    impact on overcapacity and overfishing.
  • On the other hand, several SVEs are characterised
    by heavy economic dependence on the fisheries
    sector. E.g., in terms of value of exports, fish
    and fish products from the PICs constitute an
    average of around 30 of total exports. On the
    other hand, these PICs together constitute less
    than 0.4 of global marine fisheries catch.
  • In terms of food security, per capita fish
    consumption in the PICs averages 70 kg per year,
    compared to the global average of c.a 16 kg of
    fish per capita p.a. In terms of employment, tuna
    industry alone accounts for between 8 and 11 of
    total formal employment to Pacific Island
    Countries (PICs).
  • The above statistics demonstrate the relative
    importance of fisheries to the economic survival
    of these island countries vis-à-vis their minimal
    contribution to overcapacity and overfishing.

12
SVEs SDT proposal Proposed Textual Revisions to
Article III.2(b)(2) of the Chairs Text
  • PROPOSED TEXTUAL REVISIONS TO ARTICLE III.2(b)(2)
    OF CHAIR'S TEXT, ANNEX VIII, TN/RL/W/213
  • (b) In addition, subject to the provisions of
    Article V
  • (2) (i) Subsidies referred to in Article I.1(a)
    and I.1(c) shall not be prohibited provided that
    they are used exclusively for marine wild capture
    fishing employing decked vessels not greater than
    10 meters or 34 feet in length overall, or
    undecked vessels of any length. OR
  • (ii) Subsidies referred to in Article I.1(a) and
    Article I.1(c) should not be prohibited for those
    developing country Members whose percentage share
    in world NAMA trade is not more than 0.1 per cent
    and whose percentage share of global marine wild
    capture is not more than 1 per cent.

13
APPENDIX Background Slides
14
Recapitulation Part I State of global
fisheries resources
  • More than three quarters of the world's fisheries
    have been fished to their biological limits or
    beyond (FAO, WWF, UNEP, 2005)
  • 19 per cent of the major commercial fish stocks
    monitored by FAO are overfished, 52 fully
    exploited, 20 moderately or underexploited, 8
    depleted and 1 recovering from depletion (FAO,
    2009)
  • Marine capture fisheries is an underperforming
    global asset producing annual economic rent
    losses (potential loss of net benefits) of 50
    billion, for the aggregate global fishery,
    primarily due to the lack of effective fisheries
    governance (World bank/FAO Sunken Billions Study,
    2008).
  • Sustainable benefits are, therefore, in decline,
    perpetuating a spiral into poverty for many
    small-scale fishers and communities dependent on
    fishing.

15
Recap Part II Role of fishery subsidies
  • Fisheries subsidies contribute significantly to
    the creation and perpetuation of excess fishing
    capacity, thereby encourage over-fishing (the
    production distortion) and distort trade
    patterns (the trade distortion)
  • 90 of all officially reported fishing subsidies
    are granted by only seven major industrialized
    countries, which are Japan, EU, US, Canada,
    Russia, Korea and Chinese Taipei (WWF, 2009)
  • Subsidies encourage more fishers drives fishing
    effort upward, sometimes in an already
    economically unhealthy fishery, which add to the
    aggregate costs of catching the limited quantity
    of fish available. Hence, the decline in net
    economic benefits (World bank/FAO Sunken Billions
    Study, 2008).
  • Overcapacity and Over fishing thus became
    central tenets of the Hong Kong Declaration in
    December 2005.
  • Task of the Negotiating Group is to identify
    those subsidies that contribute to overcapacity
    and overfishing, with a view to determining which
    of these should and should not be prohibited,
    while considering at the same time how to
    effectively address the needs and
    particularitites of developing Members.

16
Recap Part III Doha and Hong Kong mandates
  • Para 9, Annex D of HKD .strengthen disciplines
    on subsidies in the fisheries sector, including
    through the prohibition of certain forms of
    fisheries subsidies that contribute to
    overcapacity and over-fishing
  • Para 9 of the HKD.Appropriate and effective
    special and differential treatment for developing
    and least-developed Members should be an integral
    part of the fisheries subsidies negotiations,
    taking into account the importance of this sector
    to development priorities, poverty reduction, and
    livelihood and food security concerns
  • Para 28 - Doha Mandate
  • clarify and improve disciplines on
    fisheries subsidies, taking into account the
    importance of this sector to developing
    countries

17
Recap Part IV Brief chronology of events in the
fisheries subsidies negotiations
  • Dec07 May08 First technical reading
    (preliminary discussions) of the Chairs Nov'07
    text amongst Members in the Negotiating Group
  • July 2008 - Chair's Working Document released
    which provides the full range of opinions
    expressed by the membership during the first
    technical reading of the Chair's text
    (Dec'07-May'08)
  • Jan09- Dec09 Chairs Roadmap Discussions on
    Fisheries Subsidies. Note The first technical
    reading of the Chair's text conducted within the
    Negotiating Group from Dec'07 - May'08 resulted
    in the realization that deep divergences existed
    between Members on fundamental issues relating to
    the very concepts and structure of the rules. The
    Chair therefore decided to put aside the text for
    a while and engage in a second phase of technical
    discussions based on a roadmap of questions that
    would revisit the fundamentals and help tackle
    the very roots of these divergences. This is
    however with the view to revert to the text at
    some point and improve the existing legal draft
    to reflect a new and better consensus.
  • Jan10 present Presentation and discussion of
    new proposals by Members (alternative views to
    the Chairs text). Since Jan'10, new submissions
    have been made by Korea, the SVEs,
    Brazil/India/China/Mexico and the US. The next
    meeting of the Negotiating Group on Rules will be
    held in July'10 where Members may be given a
    second opportunity to comment on the US proposal.
  • Work Programme beyond July 2010 and timelines for
    a potential revised Draft Chair's text will be
    determined only after the new Chair of the
    Negotiating Group on Rules is selected.

18
Fisheries management conditions of the Chairs
text
  • Based on Internationally recognized best
    practices
  • Measures directed at the management and
    conservation of fish stocks
  • Science-based stock assessment
  • Research and other measures related to
    conservation and stock maintenance and
    replenishment
  • Measures for controlling fishing capacity, effort
    and catch
  • Harvesting licenses or fees
  • Vessels registries and Vessel monitoring schemes
  • Establishment and allocation of fishing rights,
    or allocation of exclusive quotas, and related
    enforcement measures
  • System for reporting data on effort, catch and
    discards
  • Species-specific quotas, seasons and other stock
    management measures

19
Fisheries management conditions of the Chairs
text alternative ideas
  • Adoption and implementation of pertinent domestic
    legislation and administrative/judicial
    enforcement mechanisms
  • Transparency provisions
  • Notifications
  • Peer Review system
  • System of informational enquiry points
  • The idea of the 3-tiered approach to management
    conditionality

20
Other significant sustainability provisions in
current WTO fisheries subsidies negotiations
  • Article I.2, Chairs text, the famous Catch-all
    phrase
  • The adverse effects/action ability clause
    Article IV Chairs Text

21
Thank You
  • manleen.dugal_at_gmail.com
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