INDIA: TAMIL NADU STATE ASKS FOR FISHERIES SUBSIDIES TO THE FEDERAL GOVERNMENT

Ms Selvi  J Jayalalithaa, Hon'ble Chief Minister for the Indian State of Tamil Nadu, has asked the Indian Federal Government to provide subsidies to the fisheries sector in her state.

The request for subsidies was made at least twice.

For the first one, on 14 June 2011, the Chief Minister handed over a memorandum to Indian Prime Minister Manmohan Singh with a number of demands for financial assistance to fishermen in Tamil Nadu state.

What struck me, when reading the request made by the Chief Minister, is that the subsidies asked for relate to a whole range of programmes: vessel modification, new engines, aid to processing, fisheries specific infrastructure and, last but not least, fuel costs.

I copy here the demands on fisheries indcluded in this memorandum:

I. New fishing harbours: At present, approximately 1,100 mechanised fishing boats are engaged in fishing from Rameswaram base.
It is required to decongest the fishing fleet"financing for fishing harbours one at Poompuhar in the North at an approximate cost of 75 crores [750,000,000 rupees or 15,148,000 USD] and another one at Mookaiyur, South of Rameswaram at an approximate cost of 60 crores  [600,000,000 rupees or 12,118,000 USD] are long felt needs.

II. Special package for conversion of bottom trawlers into Deep Sea Tuna Long Liners: In order to reduce the trawler fishing pressure in the disputed waters of the Palk Bay area, the Government of India should offer a special package for conversion of bottom trawling boats into deep sea Tuna Long Liners suitable for deep sea fishing. As against the existing subsidy pattern available at the rate of 50%, the Government of India should give at least 90% subsidy for such conversion of vessels as a special incentive for conversion of the boats of thePalk Bay area. A sum of 15 crores [150,000,000 rupees or 3,000,000 USD] should be earmarked each year for this purpose.

II Assistance for Mid Sea Fish Processing Park: In order to benefit the traditional fishermen against the background of dwindling catch in shallow waters, the State requires assistance from the Government of India for a Pilot Project of establishing a Mid Sea Fish Processing Unit, which will also act as a ‘Value Added Export Oriented Park’. Under this Project, which will cost approximately 80 crores [800,000,000 rupees or 16,158,000 USD] , a ‘Carrier Mother Vessel’ will be stationed at mid-sea, and it will act as a source of essential inputs for the ‘Baby vessels’ which will be involved in commercial fishing in the deep seas. This will serve a dual purpose of adding value to the fish caught in the deep sea sand also consequently reduce the pressure of fishing in the shallow waters of Palk Bay.

IV. Reimbursement of Central Excise Duty on High Speed Diesel (HSD) to mechanized boats: To reduce the operational cost of mechanized fishing boats, the Government of India has a Scheme to reimburse the Central Excise Duty on HSD oil supplied to such boats. However, the conditions imposed for reimbursement of the Central Excise Duty, such as the requirement of the Boat owners to be in the BPL category (which is practically impossible for any motorised boat owner), and the monthly ceiling of only 500 litres per boat for availing of the subsidy are unworkable for Tamil Nadu, as well as other Coastal States. Such conditions should immediately be reviewed in order to make this Scheme operational.

V. Motorisation of traditional crafts: The present assistance of 3 crore per year for motorisation of nearly1,000 traditional crafts every year is very meagre for Tamil Nadu since there are 32,000 non-motorised traditional crafts in the State. It is requested that a Package of 15 crore [150,000,000 rupees or 3,000,000 USD] per year may be sanctioned so that at least 5,000 traditional crafts are motorized every year.

Here is an official press release by the State Government of Tamil Nadu announcing the hand over of the Memorandum:

http://www.tn.gov.in/seithi_veliyeedu/pic.php?id=1971

And here a link to a website where a copy of the memorandum can be found (I did not manage to find a copy in the official website).


http://www.tamilguardian.com/file/File/Memorandum_submitted_by_Tamil_Nadu_Chief_Minister_Selvi_J.pdf

On 25 December 2011, and taking advantage of a visit of Prime Minister Manmohan Singh to Channai, the Chief Minister handed over another Memorandum that included a reminder of the requests made in the previous one, and of "A special package of Rs.10 crore every year for the State for the dredging of fishing harbours and bar mouths. The Government of Tamil Nadu had requested for an assistance of Rs.10 crore [100,000,000 rupees or 202,000 USD] every year to take up dredging of fishing harbours and bar mouths each year."

Here is an official press release on this second Memorandum:

http://www.tn.gov.in/seithi_veliyeedu/pressphoto.php?id=2909

And here the link to the webpage with a copy of the Memorandum of 25 December 2011:

http://www.tn.gov.in/seithi_veliyeedu/pr25Dec11/pr251211_273.pdf

INDONESIA: video on the WTO, fisheries subsidies, tariffs and access to fisheries resources

I found this interesting video in YOUTUBE.

I recommend you to watch it.

WTO: the BRICs and Mexico make proposals on "small-scale fisheries" and on... fisheries agreements

This week the so called BRICs (Brazil, China, India) and Mexico have made a joint written proposal modifying the Chair’s draft text agreement of November 2007.

The main thrust of the proposal is to present the other Members of the WTO with a definition of the so called « small scale fisheries ». According to this group of countries « small scale fisheries » have to be defined according to « socio-economic criteria ». Here are two paragraphs of the introductory part of the submission setting out the rationale for such proposal.

Here are extracts of the introductory part:

On the issue of small-scale, artisanal fisheries, the proponents decided to bring forward a definition based on socio-economic criteria, inspired by the current Article 6.2 of the Agreement on Agriculture. We believe that this is the best way for striking a satisfactory balance, in the absence of internationally-agreed definitions on those fisheries activities by other Organizations more directly involved in fisheries issues. Each Member should be able to work on its own definition, insofar as the criteria set forth in the future WTO disciplines are observed.

On the larger scale fisheries, criteria such as the boat size and the area of capture were replaced with provisions structured on the rights Members have under the international law. For those activities the controls in Articles IV and V would fully apply, in order to implement the Hong Kong mandate consistently with its main goal: to bar harmful fisheries subsidies that create over-fishing and produce overcapacity, as well as distort trade or production. Artificial distinctions such as the Exclusive Economic Zone limitation and the 10 meters threshold were thus deleted.

Another important feature of the proposal is that it introduces new language, under Article III, that would prohibit to developed countries those « subsidies arising from the further transfer, by a payer Member government, of access rights that it has acquired from another Member government to fisheries within the jurisdiction of such other Member.» if concluding such agreement with a developing country.

As an example all payments made in the context of the fisheries agreements concluded by the EU with developing countries could come under such prohibition.

Here is the aformentioned language:

III.4 III.3 Subsidies referred to in Article I.1(g) shall not be prohibited where the access rights are acquired by a developing country Member and the fishery in question is within the EEZ of a developing country Member,

 The fact that the words "the access rights are acquired by a developing country Member and" have been added imply that, to benefit from the exemption to the prohibition under Article I.1(g), the fisheries agreement must be concluded exclusively between developing countries. At least this is my interpretation.

Strangely enough the introductory part is silent about such substantial change to the Chair’s draft.

The full text of the submission, with WTO reference TN/RL/GEN/163 can be found at the WTO’s website.

ANGOLA: new boats for small-scale fishermen

When hearing the words "fisheries subsidies" one thinks, in most instances, of money given to fishermen. But this is only a way to provide subsidies to fishermen. A transfer of goods (as written in the definition of a subsidy in Article 1 of the WTO Agreement) is also a subsidy.

In Angola the government is now handing over boats to fishermen so that they can increase their harvest and have better livelihoods.

Here is the link to a press article in AngolaPress (in Portuguese) commenting on this announcement:


http://www.portalangop.co.ao/motix/pt_pt/noticias/sociedade/2009/9/43/Vice-ministro-das-pescas-entrega-embarcacoes-Chitatela,eceefbec-0b90-4bec-b41c-6984c2ecccdf.html

INDIA: artisanal fisheries and subsidies

As those familiar with the ongoing WTO fisheries subsidies negotiations know “artisanal fisheries” are one of the most contentious and debated issues in the negotiations.

Some WTO Members have been very vocal in asking for broad exemptions to the so called artisanal fisheries. In particular India (with the support of China and Indonesia) have been making submissions to ensure that what they consider as “artisanal” or small-scale or subsistence fisheries is not subject to any new rule on subsidies for the fisheries sector.

India’s submission (TN/RL/W/203 of 6 March 2006) sets out what artisanal fisheries should cover:

“Based on the broad elements that have been advanced by international rganizations such as FAO, the World Bank, Asian Development Bank and ICCAT and Members’ submissions thus far, India believes that the common characteristics for developing an understanding of small-scale, artisanal fisheries may be based on a recognition of the following:

• They are traditional fisheries involving fishing households or small groups of fishworkers.


• The fishing vessel could vary from gleaning or a one-man canoe to up to 20 m, including trawlers, seiners or long-liners.


• They use relatively small fishing vessels, which may be non-motorized or use small out board engines (say up to 10 bhp).


• The fishing is confined to close to the shoreline.


• Use of fishing gear such as beach seine and gill nets, hook and line, and traps.


• Use of labour-intensive technologies.


• Artisanal fisheries can be both subsistence or commercial, providing for local consumption or export as well.”

At the same time other WTO Members insist very much on the fact that “no blank check” should be given to developing countries in the name of “artisanal fisheries”. This has been was clearly stated by a number of countries, developed and developing, throughout the negotiations. As an illustration I quote from a submission by Australia, New Zealand and the U.S. tabled as a reaction to another submission by India, China and Indonesia.

“Developing countries have seen first hand how uncontrolled fishing in their coastal waters can lead to stock depletion and threats to livelihoods, and how subsidies have distorted production and trade patterns. Thus, there is general consensus that there should be no "blank check" to develop fisheries in a way that undermines their long-term sustainability.”

In another submission (TN/RL/W/234 of 17 July 2008) by Argentina, Chile, Colombia,Ecuador, Mexico and Peru also stated that flexibilites for developing countries in the context of Specal and Differential Treatment are not tantamount to a "blank check":

In Hong Kong, our Ministers recognized the importance of the fisheries sector for development priorities, poverty reduction, and livelihood and food security concerns. If well managed, fishing can continue to be a significant source of food and income for a large part of the population in developing countries, as well as an instrument for reorientation from less productive activities. That is why a central element of future disciplines will be the flexibilities given to developing countries to support fishing activities. However, scientific information on the status of marine resources and countries' own experiences in the exploitation of fishery resources show that such flexibility cannot be a blank cheque.

Small scale fisheries : an elusive concept

A few days I cam across an interesting blog titled "Shifting baselines" run by Jennifer L. Jacquet. The blog included a post on fisheries and subsidies to "small-scale" fisheries with a reference to a paper by her and Daniel Pauly titled "Funding Priorities: Big Barriers to Small-Scale Fisheries" published in the journal Conservation Biology.


With regard to definition of "small-scale fisheries" the paper states: "Although they are often described as very variable between countries, small-scale fisheries are characterized as fishers operating in boats of 15 m or less, or without boats".


It is interesting to see that the authors draw the line at the aformentioned figure. When looking to the WTO negotiations on fisheries subsidies, it is also interesting to see that there is no agreement at all on what small-scale fisheries are, not the least on the length of the vessels.


The WTO Secretariat compiled a document titled "Definitions Related to Artisanal, Small-Scale and Subsistence Fishing" WTO ref. TN/RL/W/197 of 24 November 2005. This document is useful as it show how diverse, and by times contradictory, are the defintions used to circumscribe "small scale" fisheries.


Herunder is the link to the post in "Shifting Baselines":

http://scienceblogs.com/shiftingbaselines/2008/09/funding_priorities_big_barrier.php

Fisheries subsidies and small scale / artisanal fisheries

Those familiar with the WTO negotiations on fisheries subsidies know that the impacts of small scale / artisanal fisheries has been one of the most hotly debated subjects, in particular as regards the question whether these fisheries should be fully exempeted from new disciplines or not.

WWF has recently issued a paper on this subject. Here is the link where the document can be found.

http://www.eldis.org/go/display&type=Document&id=37260