WTO Draft Fisheries Text Endorsed

World Trade Organization members agreed Tuesday to adopt the draft text on proposed disciplines for addressing subsidies contributing to overcapacity and overfishing, which have depleted global fish stocks. This draft serves as the basis for finalizing an outcome in the remaining six weeks before the 13th Ministerial Conference.

Issued last month by fisheries negotiations chair Einar Gunnarsson of Iceland, the draft enables members to negotiate a clear text for the trade ministers' meeting in Abu Dhabi on February 26. During a press conference, Ambassador Gunnarsson stated his attempt to "capture the views and positions expressed by Members over the last year and longer," aiming to identify a path towards a resolution.

He acknowledged the draft's imperfection, noting the need for refinement and adjustment in the coming weeks. The OC&OF disciplines, as structured, employ a two-tiered hybrid approach, based on the annual aggregate value of each Member's fisheries subsidies to classify members into tiers.

The approach includes a list approach and an effects approach, the latter of which several members have questioned. It appears designed to assist major subsidizers like the European Union, the United States, China, Japan, and Korea, allowing them to continue their substantial OC&OF subsidies.

The draft outlines presumptively prohibited fisheries subsidies, subject to a sustainability-based qualification. This qualification permits subsidies if the subsidizing Member demonstrates sustainability measures in its WTO notifications. The requirements for this demonstration are more stringent for the top 20 subsidizing Members compared to those in the second tier.

Notably, the draft removes distant water fishing from the prohibited subsidies list, placing it in the special and differential treatment category, potentially including countries like India and Indonesia in the future.

The text also imposes rigorous notification requirements for the top-20 subsidizing countries, requiring precise notifications to evaluate subsidy consistency with Article A.1.1. It includes information on fish stock status, conservation measures, and fleet capacity.

The draft specifies that Members must notify their annual aggregate fisheries subsidy levels, using a predefined template. This information plays a crucial role in determining subsidy discipline application.

However, concerns remain regarding the compliance of major subsidizers with these requirements, particularly in light of their track record with farm subsidies. The draft text has been criticized for being biased towards major subsidizers and against developing countries, which are often pressured for flexibilities or transitional arrangements despite not causing the problem.

The chair introduced two new provisions: a transitional period for certain developing Members and a provision excluding developing Members with highly industrialized fishing sectors from accessing special treatment.

Special dispensation is provided for ACP countries with low marine capture production, defined by a threshold that remains negotiable. Time constraints and the need for compromise are emphasized by the chair, with the draft text criticized for favoring major subsidizers and neglecting certain issues.

The rationale behind excluding distant water fishing from the list of prohibited subsidies and its inclusion in the special treatment category remains unclear. The draft in section B.6 addresses this but lacks clarity.

To date, 55 countries have submitted their protocol of the fisheries agreement concluded in 2022, which will take effect once two-thirds of members submit their protocol.