Negotiators at World Trade Organisation (WTO) talks on ending harmful fishery subsidies have clashed on how to frame a ban on subsidized fuel for fishing operators.
Members are divided on whether a paragraph in the draft agreement text should rule out subsidies whether they are specifically for fishing, or so-called “non-specific” government subsidies which may find their way to the fishing sector.
Under the WTO's existing Agreement on Subsidies and Countervailing Measures, rules apply only to those subsidies that are specific – a subsidy granted to a specific type of enterprise or sector.
Several members at the talks in Geneva this week argued that the inclusion of non-specific fuel subsidies in the fisheries subsidies agreement “would raise systemic issues and result in having all government interventions in any sector be actionable,” explained a Geneva-based trade official.
Article 1.2 of the draft text being debated by members at the WTO states: "[Notwithstanding paragraph 1 of this Article, this [Instrument] also applies to fuel subsidies to fishing and fishing related activities at sea that are not specific within the meaning of Article 2 of the SCM Agreement.]"
Members that support Article 1.2 "argue that non-specific fuel subsidies, which are granted to all industries, could nevertheless find their way to fishers' pockets and thus help fund overfishing,” the official said.
As a compromise, one member nation at the talks suggested that fuel tax relief programs be excluded from Article 1.2, the rationale being that tax relief was not a monetary handout by governments per se that leads to overfishing. That view has been supported by several fishing nations, noted the official.
“In any case, large fishers already refuel in cheaper or tax-free jurisdictions at sea and Article 1.2, as it is currently worded, would not be the best way to curb their operations, these members,” the official said. “Another member suggested that on-shore activities be excluded from Article 1.2. Yet another suggested that members be required to submit information on their non-specific fuel subsidies and fuel detaxation programs to enhance transparency and understanding in lieu of Article 1.2.”
The talks, which are set to climax on 15 July with a ministerial meeting, aim to stop subsidies which lead to overfishing and illegal fishing. Last week the European Union fishery representative body, Europeche, called on E.U. negotiators to protect fuel subsidies because E.U. vessels must operate under higher standards than competitors.
The WTO has been discussing fishing subsidies for over a year. The members hoped to strike a deal in 2020, but the issue of special treatment for developing countries stalled talks before a deal could be made. That issue has continued to plague the talks, which have been advancing slower than expected.
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