Latest proposal on WTO subsidies still favours advanced fishing nations

While India is ready to take sustainability measures in fisheries and opposes irrational subsidies and overfishing by many countries, it may not agree to the latest proposal

The revised draft text of the fisheries subsidies at the World Trade Organization (WTO) remains tilted in favour of advanced fishing nations, making it ‘unbalanced’ and ‘weak’, officials aware of the matter said on Thursday.

WTO member nations kick started a clause-by-clause discussion of the entire text of the revised draft in Geneva from Tuesday. India is also participating in the discussions to make sure its voice is heard.

While India is ready to take sustainability measures in the fisheries sector and is against irrational subsidies and overfishing by many countries, it is unlikely to agree to the latest proposal on subsidies.

The discussion on the revised draft text comes ahead of the WTO 12th ministerial conference that will kickstart from 30 November in Geneva, as the global trade body looks forward to building consensus on the deal that aims to eliminate subsidies for illegal, unreported and unregulated fishing and promote sustainable fishing.

The revised draft text of the fisheries subsidies does not specify the transition period of 25 years for exempting some developing countries from subsidy cuts as proposed by India. The transition period will have to be negotiated by member nations and will have to be decided after further discussion by member nations over the next few days.

"We find the current text has been drafted in a manner that there will be a status quo for large fishing nations. We see that the current text is weak, and is not a balanced text. It is totally in favour of advanced fishing nations," one of the officials cited above said.

“India is trying to point out the unfair nature of the text. India wants settlement as well as balance. India needs policy space in the fisheries sector in the years to come,” another official said.

India has suggested that only those countries which are engaged in distant water fishing and beyond their natural geographic area, should stop giving subsidies for 25 years in fishing areas beyond their exclusive economic zones--200 nautical miles.

One of the  officials pointed out that richer nations give much for subsidies as compared to India, which is not even a major subsidy nation. While India's subsidy amounts to Rs 1,000 crore, it is $7.2 billion per annum in case of China, $3.8 billion for European Union, $3.4 billion in case of the US.

India gives diesel some other subsidies to its 40-50 lakh fishermen, in order to give them access to fishing.

India has also cited the ‘polluter pays’ principle that countries indulging in overfishing should stop their subsidies. Meanwhile, other nations must be given a time of 25 years to develop fishing capabilities in a sustainable manner.

The revised draft text also suggested a threshold of 0.7 per cent for a country's share of global fishing up to which it would be exempted from subsidy cuts. The draft also took away the time period which was specified in the earlier draft for exemptions from these subsidy cuts for these countries. However, the threshold is subject to negotiations.

India accounts higher than the suggested threshold at about 4 per cent of the global fishing at 3.8 million tonnes of annual catch, according to industry estimates. That is why it sought the transition of 25 years for exemption from subsidy cuts.