India’s stance at WTO balances fisheries subsidies for artisanal fishers and sectoral growth

India’s stance at WTO balances fisheries subsidies for artisanal fishers and sectoral growth

Subject: IR

Section: Int organisation

Context:

• India is set to prioritize the welfare of its artisanal fishers and the development of its fishing sector at the upcoming 13th Ministerial Conference (MC13) of the World Trade Organisation (WTO) in Abu Dhabi.

Details:

• The conference will focus on negotiations around the regulation of fisheries subsidies, which are known to contribute to overfishing by supporting activities like vessel construction, fuel purchases, and more.
• A significant point of discussion will be the WTO’s draft text from December 2023, aiming to limit subsidies that lead to overcapacity and overfishing, requiring member countries to prove sustainability in their fishing practices.
• The draft exempts least-developed and certain developing countries, while imposing stricter scrutiny on the top 20 subsidy providers.
• Experts, however, believe that the proposed terms may disproportionately benefit developed countries with large industrial fishing fleets, as they can more easily comply with sustainability requirements, leaving developing countries at a disadvantage.
• This disparity could hinder developing nations like India from building significant industrial fishing capabilities, as they struggle with stringent documentation and sustainability demonstration requirements.
• India argues for the application of the principle of common but differentiated responsibilities (CBDR) and respective capabilities (RC) in the agreement, advocating for strong regulations on industrial fishing fleets to address the root cause of overfishing historically facilitated by substantial government subsidies in developed countries.
• India is pushing for a 25-year transition period for developing countries that are neither covered by the de minimis (a global share of marine catch not greater than 0.8%) nor considered least developed countries (LDCs).

Evolving negotiations:

• In 2001, during the Doha Ministerial Conference, World Trade Organization (WTO) members agreed to address the issue of fisheries subsidies, a commitment further elaborated in 2005 at the Hong Kong Ministerial Conference.
• Here, the focus was on controlling subsidies that contribute to overcapacity and overfishing, while acknowledging the need for special and differential treatment for developing and least developed countries, given the sector’s role in development, poverty reduction, livelihoods, and food security.
• The negotiations were propelled forward with the adoption of the United Nations’ Sustainable Development Goals (SDGs) in 2015, particularly Goal 14.6, which aims to eliminate harmful fisheries subsidies by 2020, thus targeting overcapacity, overfishing, and illegal fishing subsidies.

Debate over fisheries subsidy:

• The International Institute for Sustainable Development (IISD) reported a significant increase in India’s fisheries subsidies from Rs. 15.5 billion in 2016 to Rs. 22.25 billion in 2019, marking a 43% growth.
• Fuel subsidies, in particular, were noted for disproportionately benefiting wealthier fishers who can afford more subsidized fuel, thus favouring larger-scale fishing activities.

Global Fisheries Subsidies:

• Estimated at $35.4 billion in 2018; $22.2 billion for capacity-enhancing subsidies.
• The UN General Assembly tasked WTO to deliver an agreement against harmful fisheries subsidies.

Fisheries Sector in India:

• Recognized as a powerful income and employment generator.
• 3rd largest fish-producing and 2nd largest aquaculture nation globally.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY) focuses on the sustainable development of the fisheries sector.

Related Government Initiatives in India’s Fisheries Sector:

Fishing Harbours:

• Development of major Fishing Harbours (Kochi, Chennai, Visakhapatnam, Paradip, Petuaghat).
• Transformation into hubs of economic activity to support the fisheries industry.

Seaweed Park in Tamil Nadu:

• Establishment of a Multipurpose Seaweed Park in Tamil Nadu.
• Center for the production of high-quality seaweed-based products, utilizing a hub-and-spoke model.

Pradhan Mantri Matsya Sampada Yojana (PMMSY):

• Objective: Creation of direct employment for 15 lakh fishers, fish farmers, etc.
• Indirect employment opportunities expected to be three times the direct employment.
• Aims to double the incomes of fishers, fish farmers, and fish workers by 2024.

Palk Bay Scheme:

• Launched in 2017 as a Centrally Sponsored Scheme.
• Part of the umbrella Blue Revolution Scheme.
• Focus on diversification of trawl fishing boats from Palk Straits into deep-sea fishing boats.

Special and Differential Treatment (S&DT):

• Definition:
  • S&DT is a set of provisions in international trade agreements that offers preferential treatment to developing countries, recognizing their unique challenges and needs.
• Objective:
  • To address the developmental, financial, and trade-related constraints faced by developing nations.
• Key Features:
  • Flexibilities: Provides flexibility in meeting certain commitments or obligations, considering the developmental stage of the country.
  • Transitional Periods: Allows extended timelines or transition periods for implementing certain provisions.
  • Technical Assistance: Includes support in capacity building, technology transfer, and financial assistance.
  • Market Access: Grants preferential market access, including tariff reductions and exemptions.