Fisheries: EU tables a proposal to the WTO for sustainable fishing, April 2003

In response to the problem of over-exploitation of fishing resources worldwide, the European Union tabled a proposal to the World Trade Organisation on 22 April 2003, calling for a ban on all subsidies that cause overcapacity in the fisheries sector.

The proposal aims to ensure sustainable development of the fisheries sector worldwide by eliminating sector specific subsidies that have over time created overcapacity in the fisheries sector, which could not be matched by available resources. Specifically, the European Union is proposing the prohibition of capacity enhancing subsidies, namely:

• Subsidies for marine fishing fleet renewal (e.g. construction of vessels, increase in fishing capacity)

• Subsidies for the permanent transfer of fishing vessels to third countries,including through the creation of joint enterprises with third country partners

However, the EU recognises that certain subsidies have a plosive effect by encouraging the reduction of fishing capacity and by allowing people employed in the fisheries sector to find employment elsewhere. Therefore, the EU has outlined a number of subsidies that it argues should be permitted. These include:

• Subsidies to support the retraining of fishermen, early retirement schemes and diversification

• Limited subsidies for modernisation of fishing vessels to improve safety, productquality or working conditions or to promote more environmentally friendlyfishing methods. However, any such modernisation must not increase the abilityof the vessel to catch fish

• Subsidies to fishermen and vessel owners who have to temporarily stop theirfishing activity, when stoppages are due to unforeseeable circumstances such asnatural disasters, or in the framework of tie-up schemes linked to permanentcapacity reduction measures in the context of recovery plans for overexploitedfish stocks

• Subsidies for the scrapping of vessels and the withdrawal of capacity

The European Union also recognises in the proposal the particular concerns of developing countries and therefore calls for specific provisions to be included to allow these WTO members to achieve legitimate development goals.

The question of the interaction between fisheries subsidies and fisheries management regimes was discussed by WTO members at the Fourth Ministerial Conference in Doha in 2001 as part of the negotiations on 'WTO Rules' (anti-dumping, subsidies and regional trade agreements). Member States agreed to clarify and improve WTO disciplines on fishing subsidies in response to the dangerously low levels of certain fish stocks worldwide. According to the World Bank, global fisheries subsidies vary between $14 to $20 billion which would approximate 20% to 25% of turnover in this sector.

Commenting on the EU's proposal, Pascal Lamy, European Commissioner for Trade and Development, said:

This is another example of the EU's commitment to sustainable development, a key goal of the Doha Development Agenda. By banning these subsidies today, we can indeed help to ensure a sustainable future for fishermen around the world

The ban of all subsidies that enhance fishing capacity is an integral part of the EU's internal reform of its Common Fisheries Policy, which was presented in December 2002. The reform of the CFP aims to conserve fish stocks, protect the marine environment, ensure the economic viability of the European fleets and provide good quality food to consumers.

Links:
European Commission:
	22.04.03:	Press Release: WTO: fisheries subsidies - EU tables proposal for sustainable fishing [IP/03/555]
	Submission of the European Communities to the Negotiating Group on Rules - Fisheries Subsidies
	The Reform of the Common Fisheries Policy
World Trade Organisation:
	Negotiations, implementation and development: the Doha agenda
Food and Agriculture Organisation of the United Nations:
	Fisheries
	The state of world fisheries and aqua culture
European Sources Online: In Focus:
	Fishing - Commission proposes huge cuts to save industry, December 2002
	World Trade Organisation Fourth Ministerial Conference, Doha, Qatar, 9-13 November 2001
European Sources Online: Topic Guides:
	The Common Fisheries Policy

Helen Bower

Compiled: Wednesday, 23 April 2003

Background and reporting on the week's main stories in the European Union and the wider Europe.