China backs India on subsidy issue at WTO

China has also joined as a co-sponsor to the draft paper circulated by India and Indonesia. According to experts, the Chinese move is significant as the country has been opposing any kind of subsidy to the sector since long.

The three countries have argued that the draft rules on subsidy for the sector, now under discussion, grossly undermine the economic position and status of the fishing communities of the developing countries.

The Indian proposal for a more effective and flexible special and differential treatment (S&DT) is facing stiff resistance from the European Union (EU) and Japan.

Indian fishermen and marine products exporters have been demanding strong government support for the sector, which has become financially unviable. But there is a strong disagreement among the WTO member nations on various proposals of the draft text.

The draft rules allow subsidising vessels of 10-meter length, considering it suitable for small scale operations. But India, China and Indonesia have put forward a proposal to consider subsidising vessels upto 24-meter long.

The WTO draft proposes to establish a formal fisheries management system for all countries in order to qualify for the right to provide certain types of subsidies. But according to developing nations, these requirements make S&DT provisions largely unusable.

In India, there is a strong demand from the mechanised fishing sector for subsidy on diesel as it comes to 50-60 per cent of the total cost. But the draft rule proposes banning subsidies on construction, operation and fuel cost.

In the recent round of WTO negotiations, Barbados and Brazil shared the concerns of India, Indonesia and China. But countries such as Malaysia, the Philippines, Thailand and Vietnam expressed general support to the official draft.

Many members sought a fresh definition of small scale and traditional fishing, but many were wary that an unduly lax definition could end up being misused. Countries such as Argentina, Chile and Norway opposed granting subsidies to high-sea fishing fleet.

As per the draft rules, support to fishing industry such as port infrastructure, including storage and processing facility is also prohibited.

The objective being curbing over-fishing, conserving global fishery resources and encouraging global fishery management system.

The draft says that some form of subsidy will be permissible including support for enhancing safety of fishing vessels without increasing fishing capacity, reducing environmental impact of fishing etc.