March 21, 2006

New Zealand's seafood industry wants global ban on fishing subsidies

Normally, producers would protest vociferously when subsidies are taken away, not in New Zealand, where the fishing industry has established itself without subsidies for much of its existence. 

A proposal by New Zealand's government calling on the world's governments to stop fishing subsidies has drawn flak from its own fishing industry for not being broad enough in its coverage.

The government released a paper to the WTO on international trade rules to stop governments paying massive subsidies to fishermen.

The proposal called for an end to all subsidies except those that promote good fisheries management. Trade minister Phil Goff said it had attracted considerable interest and support from WTO Members.

However, New Zealand's Seafood Industry Council is seeing red over subsidies that the proposal made exception to, saying that there should be a level playing field for all.

New Zealand's fishing and aquaculture sectors operate without subsidies and must trade in international markets at considerable cost disadvantages compared to other countries, said council chief executive Owen Symmans, adding that the council is very disappointed that the proposal did not include fishery management subsidies to be removed as well.

He noted that the New Zealand industry pays around US$35 million annually for its fisheries management system. He found it unacceptable that the government's proposal would allow their competitors to avoid similar costs.

While calling for the abolishment of subsidies for the fisheries industry, Symmans is also vexed that the government did not include plans to abolish subsidies for  aquaculture in their proposal.

New Zealand's aquaculture industry is governed by regulation imposing considerable costs on producers and it is competing against countries providing lavish subsidies to their aquaculture sector, he said.