Fisheries Subsidies Negotiation at the WTO: Recommendations on contentious issues
This summation emanates from the series of previous discussions and papers that had been posted and referenced on this blog over the past few months. The WTO in May, 2018 is convening the negotiating group on Rules in relation to fisheries subsidies negotiations.
This article aims to provide further views on some of the issues under discussions with possible suggestions.
(i) On the issue of operating and capital costs and its relation to fisheries subsidies, in order to determine the types and kinds of costs that relate to operating and capital cost may be difficult. There are several issues behind these.The nature of the firms in developed and developing countries in relation to operating and capital costs. For firms, depending on the size and also the profitability factor, the operating and capital costs adds to the marginal cost of firms. This is similar to addressing negative externalities. This would be easier if members were able to obtain firm level data on the marginal costs of firms in developed and developing countries. This in itself is difficult. Without obtaining such data, the question arises how can then negotiators classify and determine disciplines on fisheries subsidies in relation to operating and capital costs. Generally considering, fisheries industries in developed countries are more competitive then developing countries, thus if disciplines in relation to operating and capital costs were indeed agreed, the imbalance will still exist. This is something to consider.
(ii) On Overcapacity, if this is measured by vessel size (length) times weight (tonnage) times motorization then one would find the countries that are holding the largest capacity for vessel sizes above 24 meters. In relation to overcapacity, in negotiations these are the countries that would need to reduce their capacity but not the rest of the world.
(iii) On Overfishing, its could be species based but the determination of catch by species must be left to the relevant RFMOs to negotiate. This is to avoid issues of fisheries management in the WTO. and respecting the rights of RFMO members to negotiate in their own forums.
Alternative Approach
Should members have difficulties in determining fisheries subsidies, the best approach could be to follow the agriculture subsidies negotiation approach of Green, Blue and Amber boxes however including both specific and non-specific subsidies in the discussions.
This article aims to provide further views on some of the issues under discussions with possible suggestions.
(i) On the issue of operating and capital costs and its relation to fisheries subsidies, in order to determine the types and kinds of costs that relate to operating and capital cost may be difficult. There are several issues behind these.The nature of the firms in developed and developing countries in relation to operating and capital costs. For firms, depending on the size and also the profitability factor, the operating and capital costs adds to the marginal cost of firms. This is similar to addressing negative externalities. This would be easier if members were able to obtain firm level data on the marginal costs of firms in developed and developing countries. This in itself is difficult. Without obtaining such data, the question arises how can then negotiators classify and determine disciplines on fisheries subsidies in relation to operating and capital costs. Generally considering, fisheries industries in developed countries are more competitive then developing countries, thus if disciplines in relation to operating and capital costs were indeed agreed, the imbalance will still exist. This is something to consider.
(ii) On Overcapacity, if this is measured by vessel size (length) times weight (tonnage) times motorization then one would find the countries that are holding the largest capacity for vessel sizes above 24 meters. In relation to overcapacity, in negotiations these are the countries that would need to reduce their capacity but not the rest of the world.
(iii) On Overfishing, its could be species based but the determination of catch by species must be left to the relevant RFMOs to negotiate. This is to avoid issues of fisheries management in the WTO. and respecting the rights of RFMO members to negotiate in their own forums.
Alternative Approach
Should members have difficulties in determining fisheries subsidies, the best approach could be to follow the agriculture subsidies negotiation approach of Green, Blue and Amber boxes however including both specific and non-specific subsidies in the discussions.
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