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India’s Stance on Fisheries Subsidies at WTO

  • January 25, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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India’s Stance on Fisheries Subsidies at WTO

Subject: IR

Section: Int Org

Asymmetrical Agreement Rejection:

  • India refuses to agree to an “asymmetrical” agreement on reducing fisheries subsidies that lead to overfishing. Specific carveouts are insisted upon to protect resource-poor fishers and preserve the space for capacity development.

Protection of Livelihood:

  • The livelihoods of 9 million people, mainly resource-poor and dependent on fishing, need protection. India demands exemption for poor fishers from subsidy cuts, regardless of their fishing locations.

Exemption for Developing Nations:

  • India seeks exemption for all fishers in developing nations from subsidy cuts within the exclusive economic zone (EEZ) of 200 nautical miles. A 25-year exemption from subsidy cuts for fishing in waters beyond EEZ is also requested.

Special & Differential Treatment:

  • These demands align with the concept of special and differential treatment for developing nations. India emphasizes the need to safeguard the interests of developing countries in WTO negotiations.

Upcoming WTO Meeting:

  • Trade Ministers from 164 WTO nations will convene in Abu Dhabi on February 24-29 to negotiate various agreements, including curbing fisheries subsidies contributing to overcapacity and overfishing.

Partial Agreement Status:

  • While a partial agreement on curbing harmful fisheries subsidies was reached at the previous WTO MC12 in 2021, only about 55 nations have adopted it so far, falling short of the required 110.

Concerns about Developed Nations:

  • India criticizes developed nations, including the EU, Japan, Norway, the US, and even non-developed nations like China, for their distant water fishing practices and extensive subsidies to their fishing communities.

Equitable Resource Sharing:

  • India asserts that environmental concerns should be shared equitably. Developed nations, having different capacities, should bear more substantial cuts to create space for others’ development.

Challenges in Global Fishing Dynamics:

  • Developed nations, having historically developed deep-sea capacities, now limit entry to protect their positions, creating challenges in international fishing dynamics.

Call for Equitable Responsibility:

  • India maintains that if there are environmental concerns, responsibilities should be shared equitably, with developed nations taking on more significant cuts to accommodate the development of others.

Adoption of Agreement on Fisheries Subsidies (AFS) at WTO Ministerial Conference:

About the Agreement:

  • Prohibits subsidies for Illegal, Unreported, and Unregulated (IUU) fishing and overfished stocks.
  • Restricts subsidies for fishing on high seas beyond coastal jurisdictions.
  • Special and Differential Treatment (S&DT) allows Developing and Least Developed Countries a two-year transition period without obligations.

Exempted Areas:

  • No prohibition on subsidies for vessels not engaged in IUU.
  • Permits subsidies for overfished stocks if aimed at rebuilding to a sustainable level.

Global Fisheries Subsidies:

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

India’s Demand:

  • India seeks a 25-year transition period to end over-capacity and over-fishing (OCOF) subsidies within its EEZ.
  • Rooted in national interest due to India’s extensive coastline and the importance of the blue economy.
  • Aims to protect livelihoods, especially of small-scale artisanal fishers.

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.
India's Stance on Fisheries Subsidies at WTO IR

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