Subsidies to fishing community and WTO

Subsidies to fishing community and WTO

Subject: Economy

Context: India will focus on protecting the subsidies given to its small and artisanal fishing community at the WTO ministerial meeting on Thursday, where members will attempt to push the ongoing negotiations towards conclusion.

Concept:

The elements in the revised draft agreement floated by the Chair of the negotiating group, proposes the developing countries such as India, where fishing provides livelihood support to a large community of fishers.

• The ongoing negotiations for elimination of harmful subsidies, estimated at $14-20.5 billion annually, leading to overcapacity and overfishing, so that an agreement could be reached at the full-scale WTO Ministerial meet scheduled in November 2021 in Geneva.
• The subsidies that contribute to over-capacity and over-fishing need to be curbed, including those for construction and modernisation of vessels, purchase of machines and equipment, and for covering costs of fuel, ice or bait
• It proposed timeline for elimination of some of the subsidies.
• A number of civil society organisations, too, have strongly opposed the revised draft and sought more flexibility for developing countries.

Fish production India

• India is the second-largest aquaculture producer in the world and accounts for more than 6 per cent of global fish production.
• The sector provides livelihood to about 25 million fishers and fish farmers at the primary level and twice the number along the value chain, according to the National Fisheries Development Board.
• The Indian government provides subsidies for purchase of several items such as fishing boats, nets, other gear and fuel.