Congressman Faleomavaega mentions "U.S. tax payer subsidising right to fish"

Here is a video posted by Greenpeace USA where Congressman Eni F.H. Faleomavaega of American Samoa welcomes the Greenpeace ship"Esperanza".

In the video he makes a reference the access agreement that the US has with some Pacific nations and to the fact that some fishing companies are benefiting from "U.S. tax payer subsidised right to fish".

INDIA: subsidies for fuel and out of board motors

Public authorities in India, (central government and States)  have an history of supporting the fisheries sector (see my post tagged “India”).  India has also been very adamant at the WTO negotiations on fisheries subsidies in defending the possibility by governments to give subsidies to fisheries, especially in developing countries. This is confirmed by the written proposals that India has submitted to the WTO.

Recently the State of Goa has published an order for the implementation/continuation of the of State Sector Scheme “Financial Assistance towards subsidy for purchase of Kerosene for Out Board Motor Operators”.

I copy here a couple of extracts of the order.

For fuel, fishermen eligible for the aid will receive a: 

“lump sum subsidy of Rs. 30,000/- (Rupees Thirty thousand only) per year on a minimum consumption of 2000 litres of Kerosene.” 

For Out Board Motors: 

“The beneficiary will be entitled for financial assistance to the extent of 50% of the cost limited to Rs. 40,000/- (Rupees Forty thousand only) per O.B.M. of 8-10 HP to be shared by the State and the Central Government from the year 2011-12 of which the Central share shall be 50% of the eligible subsidy limited to Rs. 15,000/- (Rupees Fifteen thousand only) and balance of Rs. 25,000/- shall be borne by the State Government. The bank will finance the loan amount to the extent of the cost of the out board motor hypotheticating the canoe of the applicant and considering the cost of the canoe as margin money and also taking into account of Rs. 40,000/- (Rupees Forty thousand only) as a Government subsidy. Motor purchased with self finance are also eligible for subsidy at the above rate.”

Readers will note that the subsidy for the Out board motors receive financing from the Indian Central Government.

Here is a link to an article by the “Times of India” on this subsidy.

http://articles.timesofindia.indiatimes.com/2011-08-07/goa/29861085_1_kerosene-new-scheme-subsidy

And here a link to the order published by the Government of the Indian State of Goa. 

http://www.goaprintingpress.gov.in/downloads/1112/1112-14-SI-OG.pdf

USA: fisheries subsidies and budget crisis

Readers are certainly aware of the budget crisis that a number of countries, including the U.S.,  are currently experiencing.

Subsidies to fisheries can take the shape of budget hand outs (do not forget that they can also be provided as tax rebates, or forgone government revenue as dubbed in WTO jargon). I found an article in the online edition of the Sun Sentinel  discussing the issue of fisheries subsidies in the context of the U.S. budget crisis.

Here is the link to the article:

http://articles.sun-sentinel.com/2011-08-07/news/fl-nncol-budget-fisheries-nikpour-08020110807_1_catch-shares-fisheries-fishing-industry

USA: Starkist and Tri-marine to benefit from government owned near-shore cold storage facilty?

Some media have reported that Governor Togiola Tulafono of American Samoa is seeking to make available to Tri Marine International and to Starkist a 2,400 tonnes cold storage freeze facility, to be located in the Department of Port Administration in the port area. The local fishing fleet would also benefit from this facility.

Also according to press reports Governor Togiola is seeking federal financial assistance to finance the project.

Here a few links on the subject:

http://samoanews.com/viewstory.php?storyid=24775&edition=1300788000

http://www.samoanewsonline.com/publicviewstory.php?storyid=27119&newspaperid=189

MALDIVES: fisheries subsidies, for fuel, a matter of survival

An opposition party (Dhivehi Qaumee Party or DQP) in the Maldives is pressing the government to quickly provide fishermen with 100 Million Ruffiya (USD 7.8 million) subsidies to the fisheries sector to help them purchase fuel. According to the article, this amount was already allocated by the governement in the 2011 budget.

Also according to the article the DQP argues that:

"...the industry has been going downhill and that the families of the fishermen are now living in hunger and poverty. The party said that the subsidies given to the fishermen to purchase fuel are given with the aim to lift of these burdens from them and to help them out."

This piece of news aroused my curiosity on the Maldives' fisheries industry.

In the 2010 Statistical Yearbook of the Maldives I found information about the number of fishermen active in the Maldives and made a few calculations.

The most recent data  concerned 2007. In that year there were 13,648 fishermen in the Maldives. So this means that a 100 million Ruffiya subsidy allocation to the fisheries industry would translate into a 7,327 Ruffiya (or 571 USD) subsidy per fishermen in the Maldives.

Here is the link to the article:

http://www.miadhu.com/2011/06/local-news/dqp-threatens-court-action-if-fisheries-subsidies-are-not-given-in-21days/

And here the link to the Statistical Yearbook of the Maldives:

http://planning.gov.mv/yearbook2010/yearbook/5_employment/5.9.htm

USA: PETERSON INSTITUTE's recipes for the USA on WTO's Doha illness

There are a lot of ideas circulating on what the WTO Members should do on the current crisis that the WTO's Doha Round is going through.

Here is a link to a webpage from the Peterson Institute for International Economic with a policy brief titled "What Should the United States Do about Doha?"

http://www.bookstore.iie.com/publications/interstitial.cfm?ResearchID=1851

Not a word on fisheries subsidies.

MALAYSIA: more on fuel subsidies

In March 2011 I wrote a post on Malaysia's subsidies to fuel used by fishermen.

In recent articles the Malaysian press has echoed the unhappiness of license holders of so called “C2 trawlers” about the removal of a super-subsidy given by the government.

These trawlers are offshore vessels of 70 GRT and above and operate beyond 30 nautical miles off the coast. Until 31 May 2011 these trawlers could buy diesel at the price Malaysian Ringgit or RM 1.25 (or 0.41USD). After that date they price they pay is RM 1.80 (or 0.59 USD).

According to the government, this is still a subsidised price.

As to how this super-subsidy worked one of the articles (1) mentions that:

“The government subsidises 25,000 to 28,000 litres of diesel equivalent to RM31,250 (10,271 USD) and RM35,000 (11,503 USD) for each vessel every month and all Zone C2 vessels could use up to an average of 14 million litres of diesel every month”

Here are links to press articles on this issue:

(1)    http://www.theborneopost.com/2011/06/08/trawler-operators-still-enjoying-subsidy-for-diesel/
(2)    http://www.freemalaysiatoday.com/2011/05/19/trawler-operators-upset-over-subsidy-move/

WTO: Ideas on helping WTO Doha negotiations forward -> freeze and reduce fish subsidies by 10% the first year

In a previous post I included a quote from a article of a former Indian Ambassador to the WTO, where he set out his views on the possible ingredients (fish not on the plate!) for salvaging the Doha Round.

In the mean time other articles have been published in the voexeu.org website. Some authors writing on the WTO Doha Round have proposed  that "middle trading powers" should 

"Freeze all harmful fisheries subsidies and offer to reduce them by 10% in the first year provided a critical mass of members do the same;"  Richard Baldwin  and Simon J. Evenett © voxEU.org

I wonder which countries the authors have in mind when writing about "middle trading powers"?

This quote can be found here:

http://vox.cepr.org/index.php?q=node/6573

WTO: "US Demands may Kill WTO Agreement" (and so one on fisheries subsidies?)

I found a very interesting video with an interview of Timothy A. Wise, Research Director of the Global Development and Environment Institute (GDAE) at Tufts University.  

 The interview appears under the heading "US Demands may Kill WTO Agreement".

Here is the link to the website with the video:

http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=6831

WTO: "Slim chance of success for "Doha Lite" trade talks" (according to Reuters)

Here is the link to an article by Reuters with an analysis of the situation of the WTO's Doha Development Agenda Round. Not very optimistic I must say.

The article includes good insights on the discussions about the composition of a "Doha-lite" package: abolition, mainly by developed countries, of subsidies to the cotton industry, Duty-Free Quota Free access to markets for the poorest countries. These are important issues for many least developed and developing countries.

Not a word on fish subsidies in the article.

http://www.reuters.com/article/2011/05/31/businesspro-us-trade-wto-doha-idUSTRE74U6ZS20110531

WTO: more of Hollywood in fisheries subsidies negotiations

In my 31 Oct 2009 post titled “WTO: fisheries subsidies and Hollywood under the same roof” I discussed how some celebrities were supporting NGOs in lobbying for strong WTO disciplines on fisheries subsidies.

In another post of 3 Nov 2010 titled “NZ/WTO: Tim Groser on film stars and WTO fisheries subsidies” I discussed Tim Groser’s (NZ Minister responsible for Trade) comments on the role played by celebrities and Hollywood stars in international negotiations, especially in the area of climate change.

On 11 May 2011 the WWF issued a press release announcing that:

“Today, Mission Blue, Oceana and World Wildlife Fund (WWF) delivered a letter to President Obama calling for renewed U.S. leadership at the World Trade Organization (WTO) to end subsidies that contribute to overfishing.

In the letter, 77 prominent environmental leaders and groups, including conservation organizations Oceana and WWF, marine scientists Dr. Sylvia Earle and Dr. Daniel Pauly, and celebrity activists Leonardo DiCaprio, Chevy Chase and Darryl Hannah wrote, “The United States has played a strong role across successive administrations, to achieve new rules for fisheries subsidies at the WTO. Recent developments at the WTO may threaten to derail years of progress towards a successful result. We urge you at this important juncture to send clear and public signals that a genuine ‘win’ on fisheries subsidies remains a critical priority for the United States at the WTO.”

I am sure that Tim Groser, as Trade Minister of a country which is championing the adoption of very strong rules on fisheries subsidies at the WTO, will be very happy that celebrities and Hollywood give their support this time to this cause.

Here is the full link to the full text of the press release.

http://www.worldwildlife.org/who/media/press/2011/WWFPresitem21254.html

OMAN: subsidies for the purchase of fishing vessels, engines, gear, fish processing equipment, etc

A recent press release from Oman's Ministry of Agriculture and Fisheries (17 May 2011) announced a new regulation which provides for a whole array of subsidies for the artisanal fishing sector.

According to the press release the new regulation:

"...includes subsidizing the artisan fishing sector for purchasing fishing boats, engines, instruments and equipment used in the artisan fishing boats, as well as the artisan fishing accessories, in addition to the subsidy allocated for purchasing the long fishing threads, electric cranes used in the artisan fishing boats and GPS and other equipment."

and

"also included the coastal fishing subsidy for purchasing and possessing fishing equipment, quality control devices, subsidizing the fishing industries, such as, the fish drying and preparation equipment whether by salting, smoking or storing."

Here is the link to this press release:

http://www.omannews.gov.om/ona/english/newsDetails_inc.jsp?newsID=51651

 Another press, of 18 May 2011, article of ONA (Oman News Agency) gives a few figures of the Omani fishing sector

"The fisheries sector is one of the major contributors to non-oil/gas generated income, but it is seen as having an even much greater potential with Omani fishing waters being regarded as among the richest in the world. The sector and associated industry plays a vital role in the economy, as well as in the livelihoods of tens-of-thousands of fishermen and employees in the fisheries industry. The sector’s huge growth can be directly related to its importance and the confidence placed in it by public and private sector investors. It generated substantial income with figures for 2009, showing that over 158,000 tonnes of fish with a value of RO104 million were landed, a growth of four per cent compared to 2008. In 2010, local authorities have worked hard to ensure that specified rules and regulations are adhered to by fishermen."

And here is the link to the above press article:

http://www.timesofoman.com/innercat.asp?detail=45062&rand=

WTO: ingredients for salvaging the Doha Round (fisheries subsidies not included!)

Ujal Singh Bhatia, former India’s Ambassador and Permanent Representative to the WTO in Geneva has written on 10 May 2011 an interesting piece in Voxeu.org, a website on research-based policy analysis and commentary from leading economists. There is a link to it in my blog list.

To salvage Doha Mr Bathia suggests:

"Based on this broad understanding of the situation, a three pronged approach needs to be explored:

• Seriously contentious issues like the Market Access issues, Agricultural Subsidies, and Rules may be segregated for continuing consultations under agreed terms of reference.

The segregated package has to be internally balanced to allow for incentives and trade offs for all players.

• Stand alone agreements to be finalised on less contentious issues.

The areas for focus are fairly obvious to those close to the negotiations.¹

• The third component would be a Ministerial decision to initiate a work programme for institutional reform in the WTO."

Ujal Singh Bhatia © voxEU.org


The areas for focus arementioned in footnote 1 and they are the following:

"Specifically, Trade Facilitation, all aspects of Export Competition in Agriculture including Export Subsidies, Transparency Mechanism for RTA’s, LDC Waiver in Services, NTB’s package in NAMA, Ministerial decisions on Para 31(i) and 31(ii) of the Doha Ministerial Declaration, Implementation of the Hong Kong decision on Duty Free Quota Free treatment for LDC’s, a Ministerial decision on the Monitoring Mechanism for S&D provisions, as well as a Ministerial Decision on the issues raised by the C-4 on Cotton."

It is interesting to see how this list compares with other lists, such as the one proposed by the US, which includes, next to trade facilitation, fisheries subsides or the liberalisation of trade in the so called "environmental goods" but no "cotton" or duty-free quota-free for LDC's.

Here is the link to the article:

http://www.voxeu.org/index.php?q=node/6497

EU: WWF and its allies call for real reform of the EU's Fisheries Policy (also of subsidies?)

Just before the start of the European Seafood Exhibition in Brussels the WWF posted on its website a leaflet on the above subject with as head title "A shared vision for sustainable European fisheries"

I went through it and to my great surprise I did not find the "s" word, i.e. subsidy, subsidies, (financial) support. So, this piece of policy (not negligible) does not appear in this document. You could read such absence in different ways. One could be: subsidies must go, they should disappear, so do not mentioned them. The other way of reading the document would be: do not touch subsidies, keep them as they are (or at least at the same level). Another way of looking at it would suggest that, as subsidies are such a contentious issue, it is better not to address them. 

  

I found also interesting the sentence that reads as follows:

"This reform should seek to maximise the economic benefits for society through the sustainable management of these vital and renewable resources for future food security."

 This sounds like agriculture. Would this mean that the EU has to ensure that it can be self sufficient in its supply of fish products, for food security purposes?

At any rate, the EU subsidses the production of the leaflet! Should we call this a virtuous (or good, or green) fisheries subsidy? I leave the answer to the readers of this blog.

Here are a few links on this document:

http://wwf.panda.org/what_we_do/how_we_work/policy/wwf_europe_environment/initiatives/fisheries/fisheries_policy/wwf_industry_alliance_cfp/

http://www.wwf.eu/fisheries/cfp_reform/?194279/WWF-and-its-Allies-call-for-real-reform-in-European-Fisheries

USA: subsidies for sector start-up costs and dock side monitoring for New England fishermen

Here is a catch from the Net! 

Here are a couple of links with information on the above subject. The one with the presentation titled  Accessing Federal Funding for Dockside Monitoring & Sector Operations slides (in PDF)  is particularly interesting as it provides a nice overview of how the programme  works.

http://www.gmri.org/upload/files/Dockside%20Monitoring%20Funding%20Presentation.pdf

http://www.gmri.org/upload/files/Dockside%20Monitoring%20Funding%20FAQs.pdf

USA: proposal for fuel subsidies for commercial fishermen in Maine

In recent weeks I have written a few posts on fuel subsidies.

Here is one on a bill in the State of Maine to Refund the Sales Tax Paid on Fuel Used in Commercial Fishing Vessels

The Republicans in Main are proposing a series of tax cuts, including taxes on fuel used by fishing vessels. In one press article (see link hereunder) State Senator Trahan is quoted as saying that "The elimination of the sales tax on fuel used in the Gulf of Maine is aimed at encouraging fishermen to bring their fish to Portland, rather than Massachusetts".

Here is the link with official information on the bill on fishing vessels :

 

http://www.mainelegislature.org/LawMakerWeb/summary.asp?ID=280039215

Here the article on tax cuts (including in fuel for fishing vessels) proposed by the Republicans in Maine:

 

http://www.pressherald.com/news/gop-plan-for-budget-calls-for-tax-cuts_2011-04-15.html

WTO: is the Doha Round now under "life support"?

In my previous post I was discussing the "noises" that were coming from Geneva concerning the state of play in the WTO's Doha Development negotiations.

Well, it seems that today the Director General of the WTO discussed with delegates from the member countries the seriousness of the situation.

Here are a few articles and press releases on the issue:

US deals blow to global trade deal hopes

http://arabnews.com/economy/article334733.ece

U.S. questions value of early Doha trade text

http://in.reuters.com/article/2011/03/29/idINIndia-55960320110329

In Spanish:

OMC: brecha entre partes en negociaciones sobre ronda de Doha son "inmensas"

http://www.swissinfo.ch/spa/suiza_y_el_mundo/internacional/OMC:_brecha_entre_partes_en_negociaciones_sobre_ronda_de_Doha_son_inmensas.html?cid=29878472

In French:

OMC/Doha: les écarts restent "immenses", pesant sur l'espoir d'un accord en été

http://www.romandie.com/infos/news/201103291830171AWPCH.asp

And here is the statement of the US delegate at today's meeting in Geneva:

http://geneva.usmission.gov/2011/03/29/ambassador-punkes-statement-on-doha/

WTO: Is the Doha Round entering a (very, very) delicate phase?

This weekend I stumbled upon an interesting (and somewhat alarming) article, dated 24 April 2011, in the online edition of the Brazilian newspaper "O Globo". The article was titled "Com possibilidade remota de acordo, Rodada de Doha está em xeque".  

Translated into English the title would read something like: "Because of the remote possibility of an agreement, the Doha Round is now in check"

According to the article, which was quoting Brazil's Ambassador to the WTO, "the situation is serious".

Further, and referring to people who are closely following the negotiations, the article says that the negotiators are working on four scenarios:

1) continuity,

2) change of approach, i.e. keep trying, but with some adjustments,

3) "uncontrolled landing", featuring a dramatic end to the Round Doha, and

4) "organised ending", i.e. a way to suspend the process, without hurting the credibility of the multilateral trading system.

On the last scenario the article mentions that "It is the first time that the fourth hypothesis comes from the backstage and reaches the ears of other country Members of the organisation".

And last but least the article concludes by pointing the Mr Lamy who "concerned about the poor prospects about an agreement […] will start in the next month, a series of bilateral meetings.

Here is the link to the article:

http://oglobo.globo.com/economia/mat/2011/03/24/com-possibilidade-remota-de-acordo-rodada-de-doha-esta-em-xeque-924079024.asp

The website of the Brazilian Ministry for External Relations (Itamaraty) has included this article in the Ministry's press review:

http://www.itamaraty.gov.br/sala-de-imprensa/selecao-diaria-de-noticias/midias-nacionais/brasil/globo-online/2011/03/25/com-possibilidade-remota-de-acordo-rodada-de-doha

The situation appears indeed to be so serious that Mr Lamy, in the press conference following a panel discussion in the "Brussels Forum" of the German Marshall Fund on Saturday 26 March 2011, said that he would not answer questions related to the Doha round as he had a a session with the whole membership on Tuesday (29 March 2011) and he needed to talk to the WTO Membership before talking to journalists.

Here is the transcript of the link to the transcript of the press conference:

http://brussels.gmfus.org/wp-content/uploads/2010/11/Brussels-Forum-Press-Release-following-G20-en-Vogue-2.pdf

MALAYSIA: fuel subsidies

Malaysia is one of the countries in South East Asia that provides subsidies to its fishermen.

The Start Online reported last year (13 July 2010) on the answer by Agriculture and Agro-Based Industry Minister Datuk Noh Omar to a question by MP Datuk Sapawi Ahmad. Mr Sapawi asked on amount of subsidies distributed to traditional fishermen and ministry efforts to curb overfishing by licensed trawler boats.

According to the newspaper article:

"The government distributed 4.66 billion litres of subsidised diesel and 314.55 million litres of petrol worth RM3bil to fishermen in the last four years. Some 6.075 tonnes of fish worth RM36.45bil were landed from 2006 to 2010. The subsidies help to meet fuel cost, which comprises 70% of their operating cost."

The equivalent of RM (Malaysia Ringgit) of 3 billion is, at today's exchange rate, USD 990 million. This means that a yearly fuel subsidy of USD 247,5 million was provided by the government to fishermen in that country.

Compared to the total value of landings (yearly average of RM 9.11 billion or USD 3 billion) the yearly fuel subsidy represented around 8% of the total value of the catch.

Here is the link to the article:

http://thestar.com.my/news/story.asp?file=/2010/7/13/nation/20100713151942&sec=nation

UNITED ARAB EMIRATES: fuel subsidies for poor fishermen

Even in the "land of plenty (of fuel)" fishermen need subsidies to purchase their fuel.

Recently I came across an article published on 7 May 2010 in the online edition of the "The National" (United Arab Emirates).

In the article it is mentioned that:

"Almost 600 Emirati fishermen are to be given subsidies totalling Dh3.8 million per year to support their struggling businesses."

The amount of Dh 3.8 million corresponds to + USD 1 million.  

It is also stated that boat engines are supplied by government to some fishermen. Here is a paragraph of the article:

"The ministry already supplies some fishermen with boat engines. Assistance is offered to those who have no other jobs and depend on the fishing to support their families. It also depends on how often they go fishing. For Ali al Mansouri, the head of the Abu Dhabi Fishermen Co-operative, the allowance would contribute to saving the traditional profession. "One of the reasons people are leaving this profession is the high cost of the fishing trip," he said."

Here is the link to the full article:

http://www.thenational.ae/news/uae-news/hundreds-of-struggling-fishermen-share-dh3-8m-fuel-subsidy