WTO RULES GROUP DISCUSSES NEXT STEPS TO CURB FISHERIES SUBSIDIES

At an informal meeting of the WTO Negotiating Group on Rules on 3 November, WTO Members discussed a new proposal by Argentina, Chile, Ecuador, New Zealand, the Philippines and Peru on a comprehensive approach to disciplining fisheries subsidies (TN/RL/W/166). The proposal stirred some debate, with the EC and US generally supporting the comprehensive approach, while Japan, Korea and Chinese Taipei favoured a bottom-up approach that would allow countries to maintain all subsidies, with the exception of specifically prohibited ones.

The new proposal discusses the benefits of a comprehensive approach to the creation of new disciplines on fisheries subsidies over a more piecemeal bottom-up approach, as proposed by Japan at the last rules meeting (see BRIDGES Weekly, 6 October 2004). It notes that the Japanese approach, which would entail defining a set of subsidy programmes to be prohibited or permitted, would take Members into areas foreign to the WTO, such as defining what constitutes a "properly managed" fishery. Instead, the submission advocates a broad prohibition of fisheries subsidies, and notes commonalities between proposals submitted by different Members on such an approach.

Specifically, the submission spells out that all subsidies that benefit the fishing industry would be prohibited. Members would then negotiate exceptions to this rule. The benefits of this approach, according to the proponents, are its simplicity, enforceability, transparency and flexibility. In terms of next steps in the negotiating process, the submission suggests the identification of subsidies that would not be prohibited. The submission provides an indicative list in this regard, including expenditures related to: fisheries management; general infrastructure; social insurance programmes; and decommissioning. The submission also notes the need for special and differential treatment for developing countries.

In their reactions to the new proposal, Japan, Korea, and Chinese Taipei said they disagreed with it. Japan strongly favoured a bottom-up approach, and felt that negotiating a general prohibition would go beyond the mandate for the Doha Round. Korea felt it would undermine the subsidies agreement, and reminded Members that efforts at the OECD to negotiate such an agreement to discipline steel subsidies had ended in deadlock because participants were not able to agree on the exceptions.

The US, on the other hand, supported the transparency benefits it saw in the approach proposed in the submission, and felt it could help move the negotiations forward. The EC, Norway and Australia also supported the submission. Several developing countries highlighted the importance of including provisions on special and differential treatment, and India and Pakistan not that "artisanal fishing" should not be covered by disciplines.

The next meeting of the Negotiating Group on Rules is scheduled for 14-17 December.

ICTSD reporting.