BACK TO MAIN  |  ONLINE BOOKSTORE  |  HOW TO ORDER

TWN Info Service on WTO and Trade Issues (Jul16/04)
5 July 2016
Third World Network

  
US strikes another body blow to WTO system at Rules talks
Published in SUNS #8274 dated 1 July 2016


Geneva, 30 Jun (D. Ravi Kanth) - The United States has struck another body blow to the WTO multilateral trading system, by telling the Doha negotiating group on rules on Wednesday (29 June) that Washington doesn't see any compelling set of circumstances to re-engage in the rules negotiating group on fisheries subsidies, several trade negotiators told the SUNS.

Launching another major attack against attempts to find multilateral solutions for outstanding issues in the Doha Work Program following the WTO's tenth ministerial conference in Nairobi more than six months ago, the US maintained that "continuing [work] in Doha negotiating bodies will be difficult."

At a specifically convened meeting on Wednesday for addressing a set of questions on fisheries subsidies, the US said members "must assess whether rules group can offer [a] venue" for arriving at disciplines to curb fisheries subsidies.

"Without new approaches," the US argued, there is little room for negotiations. Members must "find new paths forward", the US exhorted, according to negotiators present at the meeting.

Privately, the US has informed some of the proponents on fisheries subsidies that Washington intends to pursue a "plurilateral" approach so as to arrive at ambitious disciplines on fisheries subsidies that would target the Chinese vessels on international seas, a source told the SUNS.

However, at the Doha rules negotiating body meeting, the US merely said that it is ready to go forward to pursue "new paths" with like-minded members so as to ensure a strong outcome on fisheries subsidies. The US said it is willing to discuss horizontal subsidies with the EU on the basis of new ideas.

Taken aback by the US statement which threw a spanner into the wheels of the Doha rules negotiating group, the chair for Doha rules negotiating body Ambassador Wayne McCook of Jamaica said he "will take the US view to the [Doha] Trade Negotiating Committee," a South American trade negotiator told the SUNS.

Washington's latest stance that the Doha rules negotiating committee is "irrelevant" has reinforced the general view that Washington, after pocketing the Trade Facilitation Agreement, is not committed to find any multilateral outcome to the outstanding issues in the Doha work program, said an Asian trade negotiator.

"This is a frontal attack against the ongoing attempts to find multilateral solutions in all areas of the Doha rules negotiations," said an African trade negotiator.

"It is clear that the US doesn't want multilateral solutions to fisheries subsidies, improvements in anti-dumping provisions and horizontal subsidies," the trade negotiator maintained.

Despite the intransigent position adopted by the US, many members demanded a multilateral outcome on fisheries subsidies as set out in paragraph 14.6 of the United Nations Sustainable Development Goals.

Under para 14.6 of the SDGs, UN members by 2020 are "to prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated fishing and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the World Trade Organization fisheries subsidies negotiation."

The chair emphasized that many members want to address the "sustainability dimension of fisheries subsidies disciplines". Members want to ensure the issue of balance and special and differential treatment for developing countries.

Without naming Peru, the chair said "one delegation has reflected on adopting the approach followed in the Trade Facilitation Agreement in the fisheries subsidies agreement."

China, Russia, and India, however, maintained that while they are ready to engage on all issues in the fisheries subsidies, they will press for balanced outcomes in all areas of the Doha rules mandate that includes improvements in disciplines on fisheries subsidies, anti-dumping provisions, and horizontal subsidies.

China said "balance" is crucial for outcomes in the Doha rules dossier, maintaining that some members who are active on achieving an outcome on fisheries subsidies, remained conspicuously silent on trade remedies involving improvements in anti-dumping and horizontal subsidies.

The chair started the meeting by asking members to spell out their views on the questions circulated by a group of countries - Colombia, Iceland, New Zealand, Norway, Pakistan and Uruguay - for addressing fisheries subsidies.

The six countries posed five questions for sharing information on several aspects concerning fisheries subsidies.

The questions include:

1. If you have or have had fisheries subsidies, what are the key developments in your fisheries subsidies in recent years?

2. If you have fisheries subsidies, what are their primary objectives and to what extent are they delivering on these objectives?

3. What are the main drivers for reforming and/or maintaining your fisheries subsidies?

(a) Are they political, economic, environmental, developmental, welfare or a mixture of these?

(b) How do these factors balance with fiscal pressures?

(c) What has been the impact of falling oil prices?

4. Where might the political economy of reform of fisheries subsidies be less challenging or Which areas might be more challenging and why?

5. How might the NGR (negotiating group on rules) process going forward be structured best to establish fisheries subsidies disciplines to achieve SDG Target 14.6?

During the elaborate discussion on the five questions, several countries - New Zealand, Ecuador, Panama, Norway, the US, Uruguay, Korea, Iceland, the Philippines, Mexico among others - provided an account of the policies adopted by their governments on addressing fisheries subsidies.

Peru, which has been spearheading a sustained campaign for credible multilateral disciplines on fisheries subsidies, emphasized the importance of adhering to the goal 14.6 of the United Nations Sustainable Development Goals.

That goal on fisheries subsidies says: "By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated fishing and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the World Trade Organization fisheries subsidies negotiation."

Peru said fisheries subsidies must not be viewed as a commercial goal but one linked with preserving ecological balance and sustainable development goals.

Several countries supported the Peruvian demand for multilateral outcomes on fisheries subsidies based on the approach adopted for the Trade Facilitation Agreement.

Vanuatu, St Lucia, and Brazil among others supported a multilateral approach for fisheries subsidies.

Tanzania said members must strive towards achieving a multilateral solution on fisheries subsidies.

Given the global nature of fisheries subsidies and the damage they are causing to fisheries stocks, members must focus on a multilateral solution, Colombia said.

Korea said it prefers a multilateral approach in which all major fishing countries must participate.

The ACP (African, Caribbean, and Pacific) group said that it wants a strong and balanced outcome on fisheries subsidies based on strong special and differential treatment provisions.

Ecuador called for multilateral approach while Argentina called for multilateral negotiations.

India said "work in the negotiating group on rules and possible outcomes must have internal balance in respect of all core areas under the rules pillar and also take into account the realities of negotiations in the overall context."

"Our work in NGR should also not lose sight of the centrality of the development dimension," India said. India gave an account of how its fisheries subsidies programs are managed at the sub-federal level for assisting the poor fishermen.

"The primary objective of most of the fishery schemes has been to protect and secure the livelihood of traditional and poor fishing communities," India maintained.

Further, fisheries subsidies in India do not contribute to capacity addition or trade distortion, and they are primarily a "mix of welfare schemes," India argued.

Members, India said, must identify fisheries subsidies contributing to over-capacity and over-fishing, and also examine fuel subsidies provided by the developed countries.

Brazil called for a multilateral approach while the Philippines said it remains opposed to unilateral approaches.

South Africa also called for a multilateral approach and Indonesia emphasized the importance of fisheries subsidies for its people.

In sum, the US stood isolated at the meeting because of its unilateral stand to pursue outcomes involving "coalition of the willing [members]" instead of adopting a multilateral approach as demanded by a large majority of members for arriving at solutions to all outstanding issues in the Doha work program, several negotiators maintained.

After undermining the WTO's highest adjudication body for delivering independent and impartial decisions in global trade disputes, the US has now continued with its anti-multilateral stance to convert the WTO into a purely plurilateral body for legitimizing its unilateral demands, negotiators said.

 


BACK TO MAIN  |  ONLINE BOOKSTORE  |  HOW TO ORDER