April 30, 2004

 

 

New Zealand Lobbies WTO To Prohibit $20bn In Fisheries Subsidies 
 

New Zealand had made a proposal to the World Trade Organisation (WTO) to prohibit an estimated $20 billion in fisheries subsidies paid out worldwide, trade negotiations minister Jim Sutton said .

 

Sutton added that world fisheries were in crisis, and subsidies were a part of the problem.

 

"Key stocks are being run down, some to the point of collapse," he said in a statement. "Large parts of the industry are suffering. This situation is having acute social and commercial impacts."

 

At the world trade body in Geneva, the proposed prohibition was immediately criticised by the EU as "brutal and over the top", a trade source said. Japan, South Korea and Taiwan apparently opposed the move as well.

 

The proposal came to "extreme conclusions" and could lead to the elimination of "good subsidies" aimed at preserving some fish species, commented the Japanese delegate in the meeting.

 

Argentina, Australia, Chile, Iceland, Norway, Pakistan, Peru, the Philippines and Thailand supported the proposals. But many Asian countries also called for special treatment for developing countries.

 

The US said the proposal contained "simple and enforceable rules", and urged countries to "take advantage of this negotiation to make trade liberalisation beneficial to the environment". 

 

But countries have been struggling to find a way to control fisheries subsidies at a global level. This is despite growing concern about overfishing and some regional restrictions on the support for fishing fleets.

 

Sutton said New Zealand, which has the fifth-largest fishery industry, called for a broad prohibition on commercial subsidies.

 

New Zealand is arguing that a broad ban, a list of defined exceptions and transitional arrangements would be more effective than a bottom-up negotiation on a list of prohibited subsidies.

 

The EU wants to preserve subsidies aimed at preventing overfishing. They include the recently introduced decommissioning payments for boats, and other support aimed at shifting fishing away from endangered species.

 

Officials on both sides of the subsidy debate recently said that the divide on fisheries support had diminished.

 

At the ministerial meeting in Doha in 2001, WTO member states agreed to "clarify" global trade rules on fisheries subsidies primarily to help developing nations.