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.