WTO to discipline fisheries subsidies; India wants exemption for its poor fishermen

Nov 23, 2020

As WTO is getting stricter with unregulated and unreported fishing activities being carried out by poor fishermen within the territorial water regions and because of this, certain developing countries including India are seeking complete exemptions from rules, being negotiated currently in WTO to discipline fisheries subsidies.

India and these other countries have requested for more time to implement the norms or disciplines, which would be finalized after complete negotiations, on the prohibition of subsidies for fishing activities in Exclusive Economic Zones (EEZs).

The WTO negotiation is to discipline subsidies and the overall objective is to have sustainable fishing and to curb IUU (illegal, unreported, and unregulated) fishing. The purposes of the negotiations are sustainable fishing. The prohibitions on subsidies that would be finalized after negotiations should not be implemented for unregulated and unreported fishing in territorial waters.

The continuing talks are based on three pillars – prohibition of subsidies on IUU; prohibition of subsidies on overfished stocks; and prohibition of subsidies on over-capacity and over-fishing.

Further India has time and again stated that WTO negotiations on ending harmful fisheries subsidies cannot be concluded without providing carve-outs for small and subsistence fishermen from developing countries. In fact, in a meeting on November 20, India stated that special and differential treatment (S and DT) is required to have a policy space for the future and to develop its fisheries sector.

In the name of sustainable fishing, the unnecessary burden should not be imposed on developing countries and LDCs who provide minuscule or do not provide any subsidies for fishing. There is no merit in comparing millions of subsidies given in the past or being given presently for industrial fishing with minuscule subsidies of few dollars given for sustenance of livelihood and food security to our small fishermen and women,” India has said.

Developed countries are pushing for these prohibitions on subsidies. Unlike rich nations which provide billions of dollars of subsidies to their fishermen, India’s subsidy amounts to only about Rs. 770 crores. The government provides subsidies on things like fuel and boats.

The sector provides livelihood to about 16 million Indian fishermen and fish farmers at the primary level and about twice the number along the value chain.
The share of the fisheries sector in the total GDP (at current prices) increased from 0.40 percent in 1950-51 to 1.03 percent in 2017-18.