India’s initiative to establish regulations on fisheries subsidies at the World Trade Organization (WTO) has received significant support from numerous developing nations and least developed countries (LDCs). These proposals aim to tackle the issues of overcapacity and overfishing by regulating the subsidies that often exacerbate these problems. Currently, efforts are being made to finalize the second phase of the Fisheries Subsidies Agreement (FSA), which focuses on promoting sustainable fishing practices. This global collaboration highlights a commitment to more responsible fishing practices that could lead to long-term ecological and economic benefits.
Fisheries Subsidies Agreement
- It prohibits subsidies from being provided for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks.
- The agreement proposed in WTO’s 12th Ministerial Conference, also prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of coastal countries and Regional Fisheries Management Organizations/ Arrangements.
Transition Period Allowance
- Under the Special and Differential Treatment (S&DT), Developing Countries and Least Developed Countries (LDCs) have been allowed a transition period of two years from the date of entry into force of this Agreement.
- They will have no obligation to implement disciplines for the specified period.
Exempted Areas
- No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU.
- No prohibition on providing subsidies has been imposed for fishing regarding overfished stocks as long as such subsidies are implemented to rebuild the stock to a biologically sustainable level.
- Negotiations on this issue have been going on in the second phase of FSA.
Benefits
- It will check large-scale IUU fishing which deprives coastal countries like India of fisheries resources, thereby significantly impacting the livelihoods of our fishing communities.
Concerns Regarding the Fisheries Subsidies Agreement
Concerns of Small fishermen and Developing Countries and LDCs
- Large-scale commercial fishing operations often deplete fish stocks, leading to reduced catches for small fishermen.
- Large fishing corporations often receive substantial government subsidies that small fishermen do not, creating an uneven playing field.
- The sustainability exemption clause in FSA is problematic as it permits advanced fishing nations, which have better monitoring capabilities, to evade commitments to reduce harmful subsidies, thereby disadvantage poorer countries that may fish sustainably but lack similar capacities.
- Globally, an estimated 37.7% of fish stocks are overfished, a significant rise from 10% in 1974, underscoring the urgent need for effective regulatory interventions.
- As per WTO data, government funding for fisheries amounts to USD 35 billion globally, of which approximately USD 22 billion is directed towards subsidies that increase the capacity for unsustainable fishing.
Status of Countries Subsidising Fisheries
- The top five countries subsidizing fishing are China, the European Union, the US, South Korea, and Japan, collectively accounting for 58% of total global fishing subsidies.
- China stands out as a significant subsidiser, with approximately two-thirds of its subsidies classified as capacity-enhancing, which includes investments in larger vessels and equipment designed to exploit marine resources extensively.
India’s Stand on the FSA
- India’s submissions to the WTO on fisheries subsidies emphasize critical gaps that could perpetuate unsustainable fishing practices, particularly among large-scale industrial fishing nations.
- India’s stand is that it is one of the lowest fisheries subsidisers despite such a large population and one of the disciplined nations in sustainably harnessing the fisheries resources.
- India advocates for the application of the “polluter pays principle” and “common but differentiated responsibilities” to ensure that countries with higher subsidies and industrial fishing practices bear greater obligations in prohibiting harmful subsidies.
Status of India’s Fisheries Sector
- India ranks as the third-largest fish-producing country globally (after China and Indonesia), accounting for 8% of total global fish production.
- In the fiscal year 2022-23, India produced approximately 17.54 million metric tons (MMT) of fish.