Context:

India’s position on fish negotiations at the World Trade Organization (WTO) gets support from many developing countries.

Current WTO Negotiation on Fisheries:

The WTO is working towards concluding the second phase of the fisheries subsidies agreement, which focuses on addressing subsidies contributing to overcapacity and overfishing by the end of the year.
A draft proposal on Agreement on Fisheries Subsidies was discussed in the session.

Issues in Draft Proposal:

Flaws in the Draft:

India has highlighted that the draft may perpetuate unsustainable practices by industrial fishing fleets and could unfairly burden developing countries.

Alignment with Sustainability:

The draft needs to better align with sustainability goals without disproportionately affecting smaller, less industrialised fisheries.

Overfishing Issues:

The draft does not sufficiently address overfishing caused by industrial operations and imposes stringent conditions on small-scale fishers.

Concerns with Specific Clauses:

Sustainability Exemption

The exemption clause allows advanced fishing nations to avoid cutting harmful subsidies due to their superior monitoring and technological capabilities.

Special and Differential Treatment

Provisions for small-scale fishers for special treatment as provided in draft are deemed inadequate, as they do not effectively tackle the issues caused by industrial fishing.

Advocacy for Stronger Measures:

There is a push for more effective measures to control industrial fishing subsidies and better support sustainable practices in small-scale fisheries.

India’s Position on Fisheries Subsidies:

Pro-small-scale fisheries:

India wants to ensure that regulations on fisheries subsidies target large-scale industrial fishing fleets involved in deep-sea fishing without affecting the growth of small-scale fisheries.

Difference with advanced nations:

India asserts that it has low subsidies and a large fishing community dependent on sustainable practices, while advanced nations such as the US and China offer bigger subsidies and engage in industrial fishing.

Polluters Pay:

India argues that developed nations, which have historically contributed to overfishing and resource depletion, should take on more responsibility for reducing subsidies, adhering to the "polluter pays" principle.

Global Fishing Statistics:

Approximately 37.7% of global fish stocks are overfished, compared to just 10% in 1974.
Governments globally fund fisheries to the tune of $35 billion, with about $22 billion of that contributing to unsustainable fishing practices.
Major countries providing fish subsidies include China, the EU, the US, South Korea, and Japan.
India’s subsidies are relatively modest, estimated at less than $15 per fisher family annually.

Agreement on Fisheries Subsidies
Prohibition of Subsidies	The Agreement bans subsidies for Illegal, Unreported, and Unregulated (IUU) fishing and overfished stocks.
Transition Period	Developing Countries and Least Developed Countries (LDCs) have a two-year transition period from the Agreement's effective date.
High Seas Subsidies	Subsidies for fishing on the high seas, beyond the jurisdiction of coastal countries and Regional Fisheries Management Organizations, are prohibited.
Overfished Stocks	Subsidies are allowed for overfished stocks only if they are used to rebuild the stock to a sustainable level.
Impact on Coastal Communities	The Agreement aims to prevent large-scale IUU fishing, which impacts coastal communities and their livelihoods.
Support for Small-Scale Fishers	The Agreement allows flexibility in providing subsidies to rebuild overfished stocks, supporting small-scale fishers.

*For further study on the agreement refer the following article:WTO AGREEMENT ON FISHERIES SUBSIDIES***

Sources:

https://epaper.thehindu.com/ccidist-ws/th/th_international/issues/99276/OPS/GJEDAUN3P.1.png?cropFromPage=true

https://pib.gov.in/PressReleasePage.aspx?PRID=1843952

PRACTICE QUESTION

Q.India has been actively involved in the WTO negotiations on fisheries subsidies and advocated for the protection of small-scale fisheries. In this context examine the rationale behind India’s position on fish subsidies in the World Trade Organisation. ( 250 words)