30-September-2024-Editorial

INDIA’S PROPOSALS ON FISHERIES SUBSIDIES AT THE WORLD TRADE ORGANIZATION (WTO)

India has been actively advocating for regulations on fisheries subsidies at the World Trade Organization (WTO) to address unsustainable fishing practices and protect the livelihoods of small fishermen.

The global concern over overfishing and illegal, unreported, and unregulated (IUU) fishing has led to discussions on the Fisheries Subsidies Agreement (FSA), which seeks to limit harmful subsidies that contribute to overcapacity and environmental damage in marine ecosystems.

India’s stand on the FSA has received support from several developing nations and Least Developed Countries (LDCs).

Fisheries Subsidies Agreement (FSA)

The Fisheries Subsidies Agreement (FSA) is a global pact aimed at regulating subsidies that contribute to illegal, unreported, and unregulated (IUU) fishing, overfished stocks, and overcapacity. It seeks to promote sustainable fishing practices globally.

Key Prohibitions:

• IUU Fishing: The FSA prohibits subsidies for vessels or operators involved in IUU fishing activities.
• Overfished Stocks: Subsidies for overfished stocks are banned unless they contribute to the restoration of fish populations to sustainable levels.
• High Seas Fishing: The agreement prohibits subsidies for fishing in high seas, which are areas beyond national jurisdiction.

Transition Period for Developing Nations and LDCs

• Special and Differential Treatment (S&DT): Developing countries and LDCs are granted a two-year transition period, allowing them time to adjust to the new rules before being obligated to implement the agreement’s disciplines.
• No Immediate Obligation: During the transition period, these nations will not be required to adhere to the FSA’s prohibitions on subsidies.

Exemptions under the Agreement

• No Restrictions for Non-IUU Activities: A country can provide subsidies to its vessels or operators as long as they are not engaged in IUU fishing practices.
• Subsidies for Overfished Stocks: Subsidies aimed at restoring fish stocks to biologically sustainable levels are allowed, as long as they contribute to long-term fish population recovery.

Benefits of the Fisheries Subsidies Agreement

• Tackling IUU Fishing: The FSA will help curb large-scale illegal fishing, which deprives coastal nations like India of valuable fisheries resources. This will, in turn, protect the livelihoods of small-scale fishers.
• Promoting Sustainability: The agreement aims to promote sustainable fishing practices by regulating subsidies that lead to overcapacity and depletion of marine resources.

Concerns Regarding the Fisheries Subsidies Agreement

Challenges for Small-Scale Fishers:

• Reduced Catch Due to Overfishing: Large-scale commercial fishing operations often deplete fish stocks, leaving smaller catches for small-scale fishers, which severely impacts their livelihoods.
• Unequal Subsidy Distribution: Large fishing corporations receive substantial government subsidies, creating an unfair advantage over small fishermen who lack similar financial support.

Exemption for Wealthy Nations:

• Sustainability Exemption Issue: The sustainability exemption in the FSA allows advanced fishing nations to avoid commitments to reduce harmful subsidies. These nations have better technology and monitoring capabilities, putting poorer countries, which may already practice sustainable fishing, at a disadvantage.

Global Fisheries Scenario

• Rising Overfishing:
  According to global reports, 37.7% of fish stocks are overfished, a sharp increase from 10% in 1974. This highlights the urgency for effective regulations on fisheries subsidies.
• Government Funding for Fisheries:
  Data from the WTO shows that global government subsidies for fisheries total around USD 35 billion annually, with approximately USD 22 billion going toward capacity-enhancing activities, such as larger vessels and better fishing equipment, contributing to unsustainable fishing.

Top Countries Subsidizing Fisheries

• Major Subsidisers: The top five countries providing the highest fishing subsidies are China, the European Union, the United States, South Korea, and Japan. Together, they account for 58% of total global fishing subsidies.
• China’s Role: China stands out as a significant contributor to harmful subsidies, with two-thirds of its subsidies categorized as capacity-enhancing. This includes funding for larger vessels and equipment, which enable extensive exploitation of marine resources.

India’s Stand on the Fisheries Subsidies Agreement

• Sustainable Fishing Practices: India maintains that it is one of the least subsidizing nations in fisheries despite its large population and adheres to sustainable fishing practices. The country is advocating for global regulations that prioritize sustainable fishing over industrial exploitation.
• Polluter Pays Principle: India supports the application of the “polluter pays principle,” arguing that countries contributing more to unsustainable fishing through harmful subsidies should bear greater responsibility.
• Common but Differentiated Responsibilities: India believes that nations with larger industrial fishing fleets and higher subsidies should be subject to stricter regulations compared to developing countries that engage in small-scale, sustainable fishing.

India’s Fisheries Sector

• Global Ranking: India is the third-largest fish producer in the world, contributing 8% to global fish production.
• Fisheries Output: In the fiscal year 2022-23, India’s fish production stood at approximately 17.54 million metric tons (MMT), showcasing the sector’s economic importance.

Government Initiatives for Fisheries in India

• Pradhan Mantri Matsya Sampada Yojana (PMMSY): A flagship program aimed at sustainable development of India’s fisheries sector by providing financial support, infrastructure development, and modern technology.
• Blue Revolution (Neel Kranti Mission): A program focused on increasing fish production and improving the socio-economic conditions of fishers through modernization and resource conservation.
• Kisan Credit Card (KCC) Extension: The KCC facility has been extended to fishers to provide them with easy access to financial resources for their activities.
• Marine Fisheries Bill, 2021: A legislative measure aimed at regulating fishing in India’s maritime zones to ensure sustainable utilization of marine resources.

Way Forward

• Balanced Negotiation Approach: The ongoing WTO negotiations for the FSA should seek a balanced solution that addresses overcapacity and overfishing while ensuring that small-scale fishers, especially in developing nations, are protected.
• Focus on Coastal Communities: It is crucial to prioritize the interests of coastal communities during negotiations to ensure that their livelihoods are safeguarded in any final agreement.
• India’s Leadership Role: India has an opportunity to lead the Global South by advocating for regulations that protect small-scale fishers from the negative impacts of large-scale industrial fishing fleets. This stance can solidify India’s commitment to safeguarding the welfare of its fishing communities.