India’s Position on WTO Fisheries Subsidies

India’s Position on WTO Fisheries Subsidies

Sub: Eco

Sec: External Sector

India’s stance on the WTO fisheries subsidies negotiations, aimed at regulating subsidies that contribute to overcapacity and overfishing, has garnered support from many developing countries and Least Developed Countries (LDCs).

• Disciplines on Large-scale Industrial Fishing:
  • India advocates for stricter regulations on large-scale industrial fishing fleets, which are responsible for deep-sea fishing and depleting marine resources.
  • The aim is to check unsustainable fishing practices without restricting the growth of small-scale fishers in developing countries.
• Support from Developing Nations:
  • Several developing countries and LDCs have aligned with India’s concerns, especially regarding the imposition of unfair conditions on small fishers.
  • India’s submission highlights that the current WTO proposals may leave loopholes allowing large industrial fishing operations to continue receiving subsidies.
• Sustainability and Equity Concerns:
  • India has pointed out that the sustainability-exemption clause benefits developed countries with better monitoring capabilities. This allows them to avoid cutting harmful subsidies, disproportionately affecting poorer countries.
  • India seeks a fair agreement that addresses the core issue of industrial fishing while supporting small-scale sustainable fishing.
• Global Fishing Crisis:
  • Around 37.7% of global fish stocks are overfished, up from 10% in 1974. The WTO estimates that $22 billion of global subsidies contribute to unsustainable fishing practices, while total global fishing subsidies amount to $35 billion.
  • India’s subsidies are minimal compared to major subsidizers like China, the EU, the U.S., South Korea, and Japan, with government estimates of less than $15 per fisher family annually.

Challenges and Negotiation Highlights:

• Loopholes in the Current Draft: India calls for a review to ensure the WTO draft text aligns with sustainability goals while avoiding undue burden on developing nations.
• Special and Differential Treatment Provisions: India and other developing countries argue that these provisions are inadequate and don’t address the core issues of industrial fishing subsidies.

In conclusion, India’s stance reflects a broader effort to secure a balanced WTO agreement that disciplines harmful subsidies supporting industrial fishing while protecting the interests of small-scale fishers in developing nations.

Special and Differential Treatment (S&DT):

S&DT refers to provisions in international trade agreements that offer preferential treatment to developing countries, acknowledging their distinct challenges.

Objective: To help developing nations address developmental, financial, and trade-related constraints.

Key Features:

• Flexibilities: Allows countries to adjust their commitments based on their developmental stage.
• Transitional Periods: Grants extended timelines for implementing provisions.
• Technical Assistance: Provides support in capacity building, technology transfer, and financial aid.
• Market Access: Offers preferential access, including tariff reductions and exemptions.