WTO: the new "Rules" text is out... and the Fisheries subsidies text is off (the table) ... or at least, so it looks!

Ambassador Valles Galmés of Uruguay, Chair of the Negotiating Group on Rules, released on Friday 19 December 2008 a document with revised versions of the text on Anti-dumping and on the Agreement of Subsidies and Countervailing Measures.

For Fisheries Subsidies there is not such "text" but rather a "...roadmap [that] identifies the key questions that we need to address in order to reconcile the approaches and advance our work in this area."

The document dated 19 December 2008, with WTO reference TN/RL/W/236, is available at the WTO website.

WTO: Rescuing the inexhaustible…(The issue of fisheries subsidies in the international trade policy)

This is the title of an article published by Ekaterina Anyanova in the Journal of International Commercial Law and Technology Vol 3, No 3 (2008).

At the end of the article the author draws a series of conclusions which I found worthwile to reflect here:

1. Separate national efforts on reducing or elimination of fisheries subsidies won’t bring too much. In opposite, it would rather reflect the fisheries management slogan of David Cushing ‘sink every other boat but mine’.
2. During the UNLOSC III, some participants even proposed to abolish the freedom of fishing and establish “the species approach to fisheries management”. This regime requires not only the coordinate work of governments and international organizations. The significant contribution of universities, fishermen, scientists is “a must”. If economy is a help to biology, why can’t biology be of help to the economy.
3. The overfishing problem could be (in part) solved by the farming of fishing resources.
4. Moreover, the statistics shows that over 15 000 fish species are still not identified. Perhaps, nature will help humanity.
5. Environmentalists stress that the proper fisheries management could assist almost totally to eliminate the harmful impact on the environment.
6. Over one half of the world trade in fish and fish products belongs to the developing countries. Paragraph 28 of the Doha Ministerial Declaration makes an express reference to the importance of fishing sector to the developing countries. It is not occasional.
7. The fishing industry means work for 36 million people each year only in primary sectors. Before taking any concrete decision on the reduction or abolition of the fisheries’ subsidies, one has also to consider them.

The article can be downloaded at the following address:

http://www.doaj.org/doaj?func=searchArticles&q1=fisheries+subsidies&f1=all&b1=and&q2=&f2=all

WTO: the WTO beaten by the Marine Stewardship Council (MSC)... when protecting fish stocks

In a recent article in the December issue of "Ocean and Coastal Management", Dr. Peter Oosterveer (Environmental Policy group at Wageningen University) concludes that the MSC has done more to protect fish stocks from overfishing than the WTO.

On the WTO Dr. Oosterveer mentions the following problems:

1. sustainability requirments do not play a role in the WTO;
2. the slow pace of the Doha Development Agenda negotiations;
3. negotiators have not yet agreed how to deal with the "smaller fishermen";
4. the uncertainty on the shape of the new disciplines to be agreed; and
5. fisheries subsidies being part of the "single undertaking", thus being a bargaining chip that can be traded against other negotiating subjects.

Dr. Oosterveer concludes that a private initiative, such as the MSC, when compared to the WTO, is much more promosing because more dynamic.

Here underunder is the reference to an article in ScienceDaily about Dr Oosteveer's article in "Ocean and Coastal Management".

Wageningen University and Research Centre. "Quality Mark Provides Better Protection For Fish Stocks Than Does The World Trade Organization." ScienceDaily 10 December 2008. 12 December 2008

http://www.sciencedaily.com/releases/2008/12/081210091033.htm.

EU: Fisheries subsidies at the UK's House of Lords

Hereunder is a question put to the European Commission in the context of a report titled "The Progress of the Common Fisheries Policy" (22 July 2008) produced by the Committee on the European Union of the House of Lords.

9. What are your views on the possible impact on EU fisheries structural policy of WTO level discussions as regards subsidies in the fishing sector?

On 30 November 2007 the Chair of the WTO Negotiating Group on "Rules", Ambassador Valle (Uruguay), circulated a draft consolidated text to Members on the subjects covered by the "Rules" chapters, ie anti-dumping and countervailing measure and subsidies, including fisheries subsidies.

The Commission notes that a number of elements included in the aforementioned text reflect the two key principles guiding the EU's policies for aid to the fisheries sector, namely to prohibit subsidies that encourage overcapacity, leading to overfishing, while allowing subsidies that help to remove capacity in excess of available fish resources. These elements of the draft negotiating text are incorporated in the so called "red" (prohibited) and "green" (allowed) box types of subsidies.

Nevertheless the Commission is concerned that the proposals by the Chair, as they now stand, could prevent public authorities from granting support to the fishing sector to ensure the transition to a sustainable state. Examples of this are the case of aid programmes intended for a smooth and efficient restructuring of parts of the fishing industry. Furthermore the proposed exceptions ("green" box) seem insufficient to allow for the implementation of cleaner technologies, including the replacement of engines, in order to limit emissions harmful for the environment.

Besides the proposals to prohibit or to allow certain types of subsidies, the Chair's text includes certain provisions to reinforce the notification of subsidies. In this respect, the Commission would like to see a very ambitious result of the negotiations, one which would bring WTO Members at least to the same level of transparency as the one shown by the EU internally, when implementing structural funds, and externally, when notifying aid to the WTO. Increased transparency will not only generate knowledge about the types of subsidies given but will also provide a much needed insight into the impact of such subsidies both on trade and on the sustainable use of fishery resources.

In sum, the Commission's assessment is that the current negotiating proposals, as set out in the Chair's text, should be more balanced. In other words, the WTO should be given the tools to tackle the problem of overcapacity and overfishing while allowing for the provision of aid that positively contributes to the sustainable exploitation of available fishery resources and that mitigates the negative impacts of adjustment measures on fishing communities. This assessment is shared by other WTO Members in the developing world as well as developed countries.

More details on the positions of the European Union in the fisheries negotiations are available in the three submissions made to the WTO Negotiating Group on Rules on 23 April 2003 (WTO document TN/RL/W/82), on 11 April 2005 (WTO document TN/RL/W/178 and on 26 April 2006 (WTO document TN/RL/GEN/I34). These documents are public and can be downIoaded from the WTO's website.

Here is the link to the UK's Parliament where the above text can be found.

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/146/8050708.htm

NORWAY: cheaper salmon farming licenses in the North of Norway

The Norwegian Minister for Fisheries and Coastal Affairs, Ms Pedersen, announced early November 2008, 65 additional licenses for salmon farming in Norway.

The cost of the license will be 8 million Norwegian Krona, except for Finnmark in the North of Norway where the price for a license will be 3 million Norwegian Krona.

Ms Pedersen, who is from Finnmark, said that she was very happy to be able to make such announcenement.

Here is the offcial press release in English:

http://www.regjeringen.no/en/dep/fkd/Press-Centre/Press-releases/2008/new-licences-for-the-farming-of-salmon-t.html?id=535012

For those understanding Norwegian here is a link to news coverage by NRK, the Norwegian public broadcaster, of the announcement by Ms Pedersen:

http://www.nrk.no/nyheter/distrikt/nordland/1.6299730

CHILE: subsidies for the salmon farming industry

President Bachelet announced on 27/11/2008 a package of measures for the ailing salmon farming industry in Chile.

Among the announced measures Ms Bachelet mentioned financial support for the industry that will take the shape of a new bank guarantee in the framework of the CORFO programme. The government’s sponsored bank guarantee is intended so that salmon farming companies can buy equipment such as recirculation systems, wellboats, waste management but also for to move cages in other sites.

The ceiling of the guarantee will be raised from 50% to 60% of the loans with a maximum of US$ 8 million per loan. The specific guarantee programme should cover a total amount of US$ 120 million. The government expects that the guarantee will generate a total investment of US$ 400 million. According to industry sources a substantial amount of the money will be used to change the production methods so as to eradicate the control the spread of and eventually eradicate the Infectious salmon anaemia (ISA) virus.

Other measures announced by Ms Bachelet concerned additional spending in Research and Development to finance, together with Norway and Canada, activities such as the conclusion of the sequencing of the salmon genoma. Other R&D initiatives include research to assess whether the ISA virus has affected other areas.

Finally Ms Bachelet suggested measures to make sure that “workers in the salmon farming industry do not pay the price as they are not guilty of what is going on in the industry”. Among the suggested measures Ms Bachelet mentioned a system to monitor the level of employment in the industry.

The full text of the speech of Ms Bachelet with the announcement of the measures can be found here:

http://www.prensapresidencia.cl/view/viewArticulosGeneral.asp?codigo=4967&tipo=Discurso

WTO: Director General Pascal Lamy on Fisheries Subsidies (2)

In a previous post I quoted a recent speech given by Pascal Lamy at Stanford University on 27 October 2008.

Searching for "fisheries subsidies" in the "blogosphere" I found that Mr Lamy gave a lecture at the University of California, Berkeley on 29 October 2008 during which he refererred three times to "fisheries subsidies". Here are the relevant pargraphs:

"So, as we wait for the right political signals, in Geneva we continue to work towards resolution of the Special Safeguard Mechanism issue and others, including the question of high levels of trade-distorting subsidies extended to cotton farmers. We continue our work as well in areas like services, reducing fisheries subsidies, anti-dumping and specific development measures."

"But there is another reason as well. It is clear to many of us that current trade rules are inadequate for the world of today. Many see it as inequitable that rules on our books permit rich countries to pour billions of dollars into agriculture programmes which have impoverished developing country farmers over the last three decades. Many see it as unjust that we preside over a tariff system in which rich countries hit exports from poor countries with duties three or four times higher than those applied to exports from rich countries. Rules on the movement of goods through customs which date back to a time before bar coding and laptops seem antiquated. Failing to help Africa reform customs policies which require 40 documents and 30 days to clear shipments is difficult to explain. But failing to address fisheries subsidies which contribute to serious depletion of fish stocks seems downright irresponsible."

"Governments will also turn to regional or bilateral agreements rather than continue along the admittedly more difficult multilateral path. Such agreements have their place. I, myself, have negotiated a few of them in a previous life. But they are no substitute for a Doha deal. There are 430 regional and bilateral agreements in place today, 300 of these have been struck in the last eight years, and I can assure you that not one of them addresses the problem of excessive, trade-distorting farm subsidies. Not one of them will reduce the fisheries subsidies that threaten to empty our oceans. None will lead to the creation of global rules to facilitate trade or open globally trade in services."

The last paragraph brings a new light on the distintive character of WTO disciplines, i.e. they are multilateral. Mr Lamy is absolutely right in saying that no bilateral deal will go as far as prohibiting fisheries subsidies.

The full text of the lecture can be found at the WTO wbsite:

http://www.wto.org/english/news_e/sppl_e/sppl105_e.htm

Here is also a link to a blog quoting Mr Lamy:

http://www.shopfloor.org/2008/10/31/doha-hope-springssigh/

US: catfish in the federal school lunch programs. Is this a subsidy?

The U.S. Department of Agriculture announced that it will be buying up to US$ 5 million of catfish to be donated to child nutrition and other domestic food assistance programme through the Food and Nutrition Service (FNS).

It seems that it must be "domestic farm-raised catfish". According to some of the articles appearing in the U.S. press domestic producers "say could give the industry more leverage in its fight against Asian imports."


Here is the link to the press release by USDA:

http://www.fns.usda.gov/cga/PressReleases/2008/PR-0245.htm

Here is a link to an article on this subject:

http://townhall.com/news/business/2008/10/21/domestic_catfish_headed_to_school_lunch_programs

EU: Green Budget Europe

On 25 September 25th 2008 a Conference took place in Brussels to launch the "Green Budget Europe" iniitative. This initiave fits in the context of the so called Environmental Fiscal Reform.
The organiser was the German NGO Forum Ökologisch-Soziale Marktwirtschaft e.V. (FOES).

With the aformentioned conference FOES wants to bring the existing "Green Budget Germany" initiative to the European level. Within this platform there is a futher emphasis on Market Based Instruments (MBIs).

One of the workshops was devoted to "Agriculture, Fisheries and Biodiversity – Environmental Harmful Subsidies".

Fisheries subsidies were discussed under this heading by two speakers: Anja von Moltke (UNEP, Geneva) and Markus Knigge (Pew Environment Group, Europe). Their presentations can be found here:

http://www.foes.de/en/PresentationsGBE_Launch.php

U.S.: fisheries subsidies and advice to President Obama on Fisheries Policy

An American NGO, the Environmental Defense Fund, has posted on its website a report titled "Oceans of Abundance". To this report have contributed a number of prominent U.S. policy makers and fisheries experts.

The NGO considers that the President elect Obama and the U.S. Congress "have a unique opportunity to restore America's abundant oceans, which offer a sustainable source of food, jobs and diverse wildlife."

At the core of the proposed actions to restore America's abundant oceans one finds the need for the implementation of what the authors of the report have called "catch shares", i.e. a share "based on a percentage of total allowable catch or area, can be held byindividuals, cooperatives, or communities." (page 6 of the aformentioned report).

What I missed in the report is a recommendation to the new Administration along the lines of the current U.S. position (as set-out by the Bush Administration at the WTO) for a broad based ban of subsidies to the fishing industry. Therefore a logic recommendation to Mr Obama would have been to legislate in the U.S. for the widest possible ban on fisheries subsidies.

In actual fact the only reference I found to fisheries subsidies was the following:

"The Obama Administration can help provide American leadership, expertise, and resources to solve this global problem. By helping other nations to transition to catch shares, including their use in conjunction with marine protected areas, we can increase food security, alleviate poverty, reduce fishing subsidies that distort markets, and sustain a supply of healthy seafood to the United States and the globe. The fisheries of many countries are poised for this change. "

Here is the link to the NGO wesite where the report can be found:

http://www.edf.org/article.cfm?contentID=8765

NORWAY: compensation grants to fishermen for seismic exploration of oil

Norway, an oil and gas rich country, continues its search for new fields under the sea-bed.

The search is carried out under the supervision of the Norwegian Petroleum Directorate and the technique used is the so called "seismic testing". This is an exploration technique that targets oil and gas sediments under the sea bottom. To find these sediments, ships tow a high-intensity air guns that fires deep into the ocean. The blasts from seismic air gun can reach volumes of 260 decibels and are audible as far as 10 kilometers away.

From time to time Norwegian fishermen complain that these exploration trips are to the detriment of fishing as fish can be "scared" by the powerful blasts. These days there has been strong protest in the Nordland region of Norway against seismic exploration of sea areas around the aforementioned region. A number of economic operators (fishermen, buyers of fish) have submitted compensation claims for alleged economic losses due to seismic exploration. It seems that the claims run in the millions of Norwegian Krona.

It is the Fisheries Directorate that deals with the claims for compensation and that is charged with the payments.

An interesting detail is that whale hunters can also obtain compensation.

NORWAY: grants to vessels from the "NOx Fund"

As I mentioned in a previous post, Norwegian vessel owners, instead of paying a tax on NOx emissions, are now contributing to the so called NOx Fund. In turn, this Fund pays vessel owners for the "investments" made to reduce NOx emissions.

http://www.fiskeribladetfiskaren.no/, a fisheries web site from Norway, has published information on the payments made to a number of vessels for investments in NOx reduction.

For ten vessels, a total of 41.806.989 Norwegian Krona (around USD 6 Million) was granted this week by the Fund.

The link to the Norwegian website is here:

http://www.fiskeribladetfiskaren.no/?side=101&lesmer=10049

WTO: Director General Pascal Lamy on Fisheries Subsidies

In a recent speech titled "The stabilizing influence of a rules-based trading system" given by Pascal Lamy at Stanford University on 27 October 2008 he said :

[...] We all agree that rules written nearly 15 years ago do not fit the world of today. Rules which permit rich countries to pour billions of dollars into agriculture programmes which impoverish developing country farmers are seen by many as inequitable. Many find it unjust to have a WTO tariff system where tariffs in rich countries are three or four times higher on exports from the poorest countries than they are on products from other rich countries. Rules on the movement of goods through customs, which date back to a time before bar coding and laptops, seem antiquated. Failing to help Africa reform customs policies which require 40 documents and 30 days to clear shipments is difficult to explain. But failing to address fisheries subsidies, which contribute to serious depletion of fish stocks, seems downright irresponsible [emphasis added]. [...]

Because of the current architecture of the WTO DDA negotiations, fisheries subsidies need to be addressed concurrently with other "Rules" issues, namely: General Subsidy disciplines and Anti-dumping. It is the latter issue that has proven to be elusive in terms of reaching consensus on changes to existing anti-dumping rules and "zeroing" is not strange to this situation. So, i was not surprised that Mr Lamy did not mention the word "anti-dumping" in its speech directed at a U.S. audience.

The full text of the speech can be found at the WTO's website here:

http://www.wto.org/english/news_e/sppl_e/sppl104_e.htm

BRAZIL: article on public policy on fisheries subsidies

Browsing scientific literature on the subject of this blog I came across an interesting article titled "An historical account of Brazilian public policy on fisheries subsidies" written by Patrízia R. Abdallaha and Ussif R. Sumailab and published in Marine Policy Volume 31, Issue 4, July 2007, Pages 444-450.

Blogs discussing Fisheries Subsidies

The International Economic Law and Policy Blog (which is referenced in "My Blog list") has recently included two posts on fisheries subsidies and the WTO.

The first, titled "Doha negotiation on Fisheries Subsidies", discusses the nature of the disciplines being discussed at the WTO negotiating group on "Rules". The author of the posting, Junji Nakagawa, highlights the fact that these disciplines wiil be "[...] different from the disciplines on subsidies under the SCM Agreement, whose aims at addressing trade-distorting subsidies. If adopted, the Annex will open a new page in the history of trade and environment under the GATT/WTO by introducing direct disciplines on overcapacity and overfishing".

The second points to a conference given by Margaret Young (Pembroke College, Lauterpach Centre for International for international Law, University of Cambridge) on "Preemting international law's fragmentation through regime interaction: the WTO and fisheries subsidies".

Here are the links to the posts:

http://worldtradelaw.typepad.com/ielpblog/2008/10/doha-negotiatio.html

http://worldtradelaw.typepad.com/ielpblog/2008/10/wto-scholars-fo.html

CROATIA: HRK 18 million (EURO 2.5 million) in aid to fishing sector

According to an official press release dated October 16, 2008 the fishing industry in Croatia will benefit from a one-off payment of a total of HRK 18 million (EUR 2.5 million) in grants individual fishermen.

Here is the link to the official press release:

http://www.vlada.hr/en/naslovnica/novosti_i_najave/2008/listopad/vlada_18_milijuna_za_jednokratnu_potporu_ribarima

Fisheries subsidies: A review of the issues, actors and arenas as they relate to the doha mandate of the WTO

This is the title of an interesting paper written by Syma Ebbin from NORUT Samfunnsforskning AS in December 2005.

The paper can be found at the following web address:

http://en.norut.no/norut_troms/publikasjoner/rapporter/fisheries_subsidies_a_review_of_the_issues_actors_and_arenas_as_they_relate_to_the_doha_mandate_of_the_wto

FRANCE : Public-aided crises in the French fishing sector

This is title of an article published by Benoît Mesnil, from IFREMER, in Volume 51 issue 10 of "Ocean & Coastal Management", a scientific journal published by ELSEVIER.

More information on the article and the journal can be found at:

http://ees.elsevier.com/ocma/

NORWAY: a "green subsidy" for the fleet? The Norwegian "NOx Fund"

Norwegian companies in the fisheries industry, instead of paying 15 Norwegian Krona (NOK) per kg. of NOx in the form of a tax, will pay NOK 4 into a fund, the "NOx Fund", which shall in turn, allocate financial support to individual undertakings in order that emission reducing measures may be implemented.

The fund, which is also implemented for other industries, is run by an independent body financed by the participants.

The competition and "state aid" wacht-dog ESA (EEA Surveillance Authority) has concluded after scrutinising the Norwegian scheme that this is a "green" subsidy.

For more information about the scheme:

http://www.eftasurv.int/information/pressreleases/2008pr/dbaFile14424.html

Here is the ESA report:

http://www.nho.no/getfile.php/filer%20og%20vedlegg/ESAs%20vedtak%282%29.pdf

For more information about ESA:

http://www.eftasurv.int/

The Philippines: duty-free imports of fuel for the tuna industry?

It seems that the Philippino government is allowing tuna companies to import fuel directly. According to the Philippino press tuna companies would be allowed to import fuel from say, Malaysia, where it is cheaper (37 Peso/liter) than in the Philippines.

Furthermore tuna company discussed at the 10th National Tuna Congress a resolution asking the government for a 5 Peso per liter subsidy on petroleum products.

There have been also calls by politicians (e.g. Senate President Manny Villar) to "extend fuel discount, livelihood support and loans for the purchase of second-hand vessels to affected fishermen, while also pushing for the review of the Oil Deregulation Law.

Hereunder are links to the Philippino press and to a press release by Senator Villar:

http://newsinfo.inquirer.net/inquirerheadlines/regions/view/20080912-160306/Govt-allows-tuna-firms-to-import-fuel

http://www.sunstar.com.ph/static/dav/2008/09/09/bus/gov.t.allows.direct.oil.import.by.tuna.companies.html

http://www.senate.gov.ph/press_release/2008/0904_villar1.asp