http://www.fao.org/in-action/globefish UN Agencies working Together towards a Common Goal: the ongoing cooperation between FAO and UNCTAD is moving towards to assist Member Countries in achieving SDG 14.

1. David Vivas Eugui, Legal Officer
Trade, Environment, Climate Change
and Sustainable Development
Branch, DITC UNCTAD
The problem of fisheries subsidies and
how the international community is
trying to address it?
FAO Information session
Rome, 03 of May 2017

2. Setting the course
 Origin of fish subsidies negotiations
 The SDG 14 Mandate
 Fishing in the dark: Fish subsidies estimates
 Main concerns about subsidies
 UNCTAD 14 outcomes:
 The UNCTAD's oceans mandate
 The UNCTAD-FAO-UNEP Fish Subsidies Statement (2016)
 Chairman conclusions: Oceans Forum (2017)
 The potential outcome om subsidies at the UN Ocean Conference (2017)
 Recent WTO proposals
 Shifting toward positive subsidies

3. Origin of fish subsidies negotiations
 FAO's IPoA of fishing capacity (2000)
 The WTO Doha Mandate (2001)
 “Clarify and improve” existing rules
 Fisheries subsidies negotiation within the context of the SCM
Agreement
 The WTO Hong Kong Ministerial Mandate (2005)
 Strengthen disciplines on fisheries subsidies
 Including by prohibiting subsidies that contribute to overcapacity
 Incorporate Special and differential treatment (SDT)
 The Chairman draft text (2007)
 Comprehensive text based on a list of prohibited activities ,
actionable subsidies SDT

4. Sustainable Development Goal 14:
Conserve and sustainably use the oceans, seas and marine resources
Target 14.6
• By 2020, prohibit certain forms of fisheries subsidies which contribute to
overcapacity and overfishing,
• Eliminate subsidies that contribute to (IUU) fishing
• Refrain from introducing new such subsidies,
• Recognizing that appropriate and effective special and differential treatment
for developing and LDCs should be an integral part of the WTO fisheries
subsidies negotiation

5. Fishing in the dark: some estimates on fish subsidies
Source: Sumaila et al. (2013), Global Fisheries Subsidies, EU
Parliament.
• Global fisheries subsidies have been
estimated to be as high as $35
billion worldwide, of which 22%
are fuel subsidies
• OECD countries would provide
about 6.4. billion in fish subsidies
(even the OECD considers this as an underestimation,
OECD, 2006).
• About 57% of fishery subsidies can
be categorized as negative,
enhancing capacity to extract an
already quite depleted natural
resource
• Subsidies represent about 23% of
the total fish exports value by 2014
(UNCTAD, 2016)

6. The effets of certain fish subsidies
Certain fish subsidies can contribute to :
 IUU fishing (fishing above quota or not reporting catch);
 Overfishing and resource depletion, affecting the biomass levels, age and
population structure, and recovery;
 Overcapacity, too many boats for not so many fish;
 GHG emissions, fuel subsidies represent the largest share of fish subsidies (22
percent);
 Unfair trade, as fleets in certain countries get them, especially in certain
developed and developing countries;
 Inequality, as industrial fleets receive 5 times more subsidies that the small and
artisanal fishermen;
 Consumer burden; consumers are paying twice for their fish in the dish by paying
the subsidies and then the price.
Source: UNCTAD TER, 2016;
Many subsidies as currently applied do not make any
environmental, economic, and social sense….

7. Nairobi Maafikiano (Consensus) Para 100 (t):
In cooperation with other relevant international organizations and
other stakeholders, UNCTAD should support developing countries,
in particular SIDS, in the advancement of Sustainable Development
Goal 14 in the design and implementation of regional and/or
national economic development strategies for the conservation and
sustainable use of oceans and their resources seeking to promote
sustainable trade in ocean-based sectors including through analysis
of fisheries subsidies that lead to overcapacity and overfishing and
subsidies that contribute to IUU fishing and the challenges they
pose to developing countries, particularly in connection with the
conservation of marine resources and food security

8. Joint-Statement highlighting the importance of having an international
regulatory framework to streamline fisheries subsidies (supported by more than
90 Member States)
ROADMAP TOWARDS ENDING HARMFUL FISHING SUBSIDIES
Four-point plan:
– Require countries to provide information on what subsidies they are providing
– Prohibit those subsidies which contribute to overfishing and illegal fishing
– Introduce new policies tools to deter the introduction of new harmful subsidies
– Provide SDT to developing countries, in particular LDCs & SIDS
UNCTAD FAO UNEP
INITIATIVE

9. Recent Member States proposals on fish subsidies at the WTO
EU ACP LAC LDCs IC-NZ-PK
SCOPE ALL PROPOSALS MADE REFERENCE TO TARGET 6 OF SDG 14
IUU Yes Yes Yes Yes, plus
transshipment
Yes
Overcapacity Prohibition to subsidies
that: a) increase marine
fishing capacity & b) the
construction,
importation & transfer of
vessels
Yes, but only outside
EEZs
Yes, but only certain
forms
Yes Only in relation to stand
still obligation
Overfishing Covered by overcapacity Yes, but only outside
EEZs
Yes, but only certain
forms
Yes Yes, both in high seas and
in the waters of another
Member (where not
assessed or assessed as
overfished)
Definitions IUU, fishing, fishing
vessels, operator &
subsistence fishing
IUU in light of FAO's
IPoA
IUU in light of FAO's
IPoA
IUU in light of
FAO's IPoA
IUU in light of FAO's IPoA
and PSMA + fishing, fishing
vessels, & operator.
S&DT No prohibitions for LDCs
Some exceptions for
developing countries
subject to conditions
No prohibitions for
LDCs, coastal fishing,
within EEZs & within
quotas
A Trade Facilitation
approach. Categories
A, B & C.
No
prohibitions for
LDCs
Prohibitions applicable to
all Members. S&DT in the
form of transitional periods
& capacity building
STAND STILL Not necessary Yes Yes, plus anticircumvention
TRANSPARENCY Notification of all types
of support
Enhanced reporting
requirements
ADVISORY
GROUP
FAO/UNCTAD &UNEP Reference to FAO/UNCTAD
& UNEP statement
DSU Reference to DSU Subject to DSU

10. Call for Action draft text
(10 of April)
(p) Act decisively to prohibit certain forms of subsidies which
contribute to overcapacity and overfishing, eliminate subsidies
that contribute to IIU fishing and refrain from introducing new
such subsidies, including by completing negotiations in the
WTO on this issue without further delay, recognizing that
appropriate SDT for developing countries should be an integral
part of those negotiations.

11. Chair recommendations Oceans Forum, April 2017
• The elimination of certain forms of fisheries subsidies is central in the multilateral agenda
due to the mandate given by Heads of State under target 6 of SDG 14.
• There is a sense of urgency for prompt results due to limited time for meeting this target
by 2020.
• Previous negotiating texts, existing hard and soft law fisheries-related trade instruments
and best practices developed under the UN are useful elements for negotiations.
• Prohibitions would need to be specific, clear, coherent and enforceable in order to be
effective.
• It was undisputed that subsidies which contribute to IUU fishing shall be eliminated.
• A notification obligation the amount of fuel subsidies provided was considered as a first
step towards the construction of a future discipline.
• The idea of an Advisory Mechanism to WTO negotiations composed by UNCTAD, FAO and
UNEP was restated
• Accelerated work, deepened efforts, and sharpening the focus of negotiations as a means
to achieve a binding outcome by the 11th WTO MC (Buenos Aires, December 2017).
Chair conclusions can be found at: http://unctad.org/meetings/en/SessionalDocuments/ditc-
ted-21032017-OceansForum-Chairman-Conclusion.pdf

12. Shift toward positive subsidies &
the consequences of lack of action
• Reallocate government support toward:
– Sustainable stocks management, restauration and resilience, setting systems against
IUU and overfishing;
– Ship decommissioning, change in economic activity, safety and decent treatment of
crews;
– Vigilance and sustainable use of MPAs and promote links between ecosystem
conservation and tourism
– Support the adoption of sustainable fishing practices by small scale & artisanal
fishermen and compliance NTMs and voluntary sustainability standards
– Create a Blue Development Fund for the building of the oceans economy and blue
growth
• Lack of action may bring a raise in the use of unilateral measures and subsidies
and countervailing duties investigations

13. Many Thanks
UNCTAD Oceans Economy and fisheries page:
http://unctad.org/en/Pages/DITC/Trade-and-Environment/Oceans-Economy.aspx
UNCTAD's page on regulating fish subsidies:
http://unctad.org/en/Pages/DITC/Trade-and-Environment/Regulating-Fisheries-
Susidies.aspx
Trade and Environement Review 2016: Trade in Fish
http://unctad.org/en/Pages/MeetingDetails.aspx?meetingid=1243