STEPS CONSIDERED FOR MOVE TO TEXT-BASED WTO FISH NEGOTIATIONS

WTO Members meeting on 8 February resumed negotiations on rules to constrain fisheries subsidies by discussing a proposal in which nine countries, most of whom belong to a group known as the 'Friends of Fish', outlined the steps they thought necessary to make a quick transition to text-based negotiations. For the first time, the small vulnerable coastal states (SVCSs) and the African, Caribbean and Pacific (ACP) countries made a joint statement, arguing that contrary to a broad-based prohibition approach with exceptions presented by the proposal, SVE and ACP countries would prefer to have a bottom-up approach to fish subsidy disciplines. Building on these discussions, Negotiating Group on Rules Chair Ambassador Guillermo Valles Galmes of Uruguay urged delegates to put forward detailed proposals in the form of draft legal text for a new agreement in time for the next session in March.

The submission from Brazil, Chile, Colombia, Ecuador, Iceland, New Zealand, Pakistan, Peru and the US (TN/RL/W/196) -- all of whom, except from Brazil and Pakistan, belong to the 'Friends of Fish' which has argued for a broad-based ban before -- was submitted in November 2005 but discussed for the first time at the February meeting (see Bridges Trade BioRes, 9 December 2005). It summarises progress to date in the negotiations and outlines a series of steps deemed necessary to fulfil the Doha mandate in the area.

It notes that a number of types of fisheries subsidies-related programmes, such as initiatives for conservation, regional development, social insurance and research, have yet to be discussed while the analysis on several issues already covered must be deepened. The proposal also points to the importance of the provision of more detail on Members' fisheries subsidies practices in enabling focused discussions. It then calls for a move from the current "issue identification" stage to a "second phase" of talks directed at producing a "text-based outcome" for the new disciplines, but suggests that agreement on options for the broad structure of the disciplines is necessary. The nine countries say that two options are currently on the table: a 'top down' approach that would prohibit fisheries subsidies apart from certain exceptions, or a 'bottom up' approach that would only prohibit subsidies that were explicitly listed. The co-sponsors of the submission re-stated their preference for the former approach, as opposed to the bottom-up approach that Japan, Korea and Chinese Taipei have supported since the beginning of the negotiations.

According to the submission, new disciplines on fisheries subsidies should be "simple and enforceable," more transparent than existing rules, flexible enough to respond to the "dynamic nature of the fishing industry," and "must recognise the importance of this sector for developing countries through appropriate special and differential treatment."

ACP: Development must be at centre of disciplines, use bottom-up approach

Barbados, speaking on behalf of a group of small vulnerable coastal states (SVCSs) and the African, Caribbean and Pacific countries, described the nine countries' proposal as a useful roadmap, though it disagreed with the sponsors' preferred approach towards the legal structure of new rules. The SVCS and ACP countries, Barbados said, prefer a bottom up approach, since they believe that this would allow them greater flexibility in pursuing policies to fully use the resources in their waters.

Although they recognised the importance of environmental issues in the fisheries subsidies negotiations, they said they did not see the reduction of overcapacity and overfishing as the primary goal of the talks. Instead, their priority was to "ensure that developing countries and specifically least-developed countries are able to enhance their level of development and increase their integration in the multilateral trading system." Pointing to the proposal's acknowledgement that a limited number of countries provide the vast majority of distorting subsidies, they claimed that the majority of developing countries do not provide trade-distorting subsidies -- indeed, instead of promoting overcapacity with grants to fisheries, they had problems fully using the marine resources that were under-utilised in their waters. In this vein, while expressing full support of the proposal's indicative list of issues that have yet to be discussed, they noted that an emphasis on access fees, development assistance and assistance to artisanal and small-scale fisheries, management services, infrastructural development and port facility enhancement are issues of paramount importance to their fishing sectors.

The small and vulnerable coastal states have been active participants in the discussions, and have submitted two joint proposals of their own in the past (TN/RL/GEN/57/Rev.2 and TN/RL/W/136; see BRIDGES Trade BioRes, 14 October 2005). The meeting marked the first time that the SVCS and ACP countries spoke with one voice in the fisheries subsidies negotiations.

Delegates are aware that they will have to make swift progress if they are to meet an informal set of deadlines first set out by trade ministers from 25-odd Member countries in a meeting in Davos in late January. The timetable calls for Members to submit fisheries subsidies proposals in the form of detailed legal text by March, allowing for subsequent analysis by June, so that the Chair can prepare a consolidated draft agreement in July. This would serve as the basis of negotiations through the conclusion of the Doha Round.

The next rules week is scheduled 13-17 March.

ICTSD reporting.