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Contents
Synopsis: India must protect its interests in WTO on fishery subsidies
Introduction
The issue on fishery subsidies was first raised during the WTO’s Doha ministerial meet in 2001.
The basic objective of the global pact on fisheries subsidies, was to discipline or eliminate subsidies that encouraged illegal, unreported and unregulated fishing.
The provision of special but differential treatment for developing countries was decided to be ingrained in it.
Recently, India has moved amendments to the draft of the proposed agreement on fisheries subsidies in WTO. It is meant to make the accord more balanced by curbing in huge grants being given out by rich nations for exploitative fisheries.
Also, it will give space to other countries to consolidate their fisheries sectors.
What was the proposal given by India?
The present text, which tends to safeguard the commercial interests of the developed countries, is unacceptable to India because it fails to uphold the much-needed sustainability of fisheries.
Going by the estimates put out by the UN Food and Agriculture Organization (FAO), nearly two-thirds of the $35-billion subsidies go to enterprises engaged in commercial fishing.
On the other hand, the developing countries’ subsidies, just a fraction of it, are aimed mostly at facilitating livelihood security for the fisheries-dependent coastal communities.
To correct this imbalance, New Delhi has proposed that the rich countries stop subsidising fishing in distant waters beyond their exclusive economic zones (EEZ) for 25 years. This would give time to the other countries to build their own sustainable fisheries capabilities.
Why there was a need for global pact on fisheries subsidies?
Unsustainable resource Exploitation: The urgency of a binding accord on fisheries subsidies is evident from the FAO’s estimates that about 34 per cent of the world’s marine resources are already over-exploited.
Threat to Fisherman’s livelihood: Considering that the extent of overfishing was hardly 10 per cent in 1970 and 27 per cent in 2000, this trend, if continued, would deplete the fish stocks, threatening the livelihood of traditional fisherpersons.
How has WTO responded to India’s Proposal?
The WTO’s response to the Indian proposal seems fairly positive. This was clear when WTO chief Ngozi Okonjo-Iweala stated at the end of her recent New Delhi visit that the Indian plea “deserved to be heard”.
She also promised to place it on the negotiation table though, understandably enough, its adoption by the negotiators could not be guaranteed.
Why fisheries subsidies hold significan for India?
For India, the issue of fisheries subsidies has special significance.
Positive impact on Livelihood: The country has about 16 million fisher-persons relying almost solely on fishing for their subsistence. Many more are engaged in the value chain.
Increase Marine fish production: Almost the entire growth in fish production is coming from the inland fisheries (aquaculture). A favourable outcome of the global deal on fisheries subsidies is, therefore, imperative for the growth of Indian marine fisheries.
Increases Competitiveness: The subsidy given by the government to this sector is quite meagre, barely around Rs 770 crore. It meets only a part of the cost of diesel and essential fishing gear. Consequently, most Indian fisher-persons are unable to operate beyond the coastal waters.
Source: This post is based on the following articles “Differential treatment “ published in Business Standard on 29th Oct 2021.
