WTO is considering proposals on prohibiting certain fisheries subsidies in its upcoming Ministerial Conference in Buenos Aires, Argentina.
However India and many developing countries are certainly concerned with this.
What is the concern?
The issue gathered pace when an informal grouping of members called “Friends of Fish” demanded for curbing fisheries subsidies.
The group included Argentina, Australia, Chile, Colombia, New Zealand, Norway, Iceland, Pakistan, Peru and the US.
They highlighted that subsidies to the fisheries sector have led to over-capacity and overfishing.
Countries including Japan, South Korea and Chinese Taipei have expressed uncertainty over the link between subsidies and over-fishing.
On the other hand, many developing countries such as India and Philippines seek flexibility in granting subsidies.
India provides subsidies in the form of support for motorisation of fishing boats, fuel rebates and infrastructure support.
Notably all of this fall under the targeted subsidies list at the WTO.
What is India's proposal?
Subsidies - India has proposed the members to agree to apply prohibitions only outside territorial waters.
This would leave the management of territorial waters to their respective national authorities.
This provision is exceptional of the prohibition in cases of IUU (illegal, unreported, unregulated fishing).
Such an arrangement would not disturb the benefit of subsidies offered to small scale fishers, and continue to protect subsistence and artisanal fishing.
The proposal has generated a lot of interest from members including the ones pushing seriously for a prohibiting pact.
Over-fishing - India has suggested a flexibility clause for the concern on over-fishing.
Accordingly, when a fish stock is found to be over-fished, developing countries must be given some flexibility in terms of time period.
Within a specified number of years, the country should withdraw the related subsidies.
And this rule should only cover areas beyond the territorial waters.
