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TWN
Info Service on WTO and Trade Issues (Jul24/15) Geneva, 16 Jul (D. Ravi Kanth) — The chair of the World Trade Organization’s Doha fisheries subsidies negotiations on 15 July appears to have adopted an allegedly “combative” approach by drawing new battlelines with countries that raised fundamental objections to his draft text on additional provisions on fisheries subsidies contributing to overcapacity and overfishing (OCOF), said people familiar with the development. At the Doha Trade Negotiations Committee (TNC) meeting on 15 July, the chair made it known that the draft disciplines, including the alleged “free pass” given to big subsidizers engaged in distant-water fishing with easily circumventable notification requirements, will remain unchanged, said people familiar with the discussions. In a somewhat harsh tone, he appears to have brazened out criticisms against the controversial hybrid approach comprising a two-tier sustainability criteria, which appears to be conceived to help the ten big subsidizers such as China, the European Union, Japan, Korea, and the United States among others, said people familiar with the discussions. The big subsidizers, including the US and China, along with the “Friends of the Fish” group led by New Zealand, as well as a group of Latin American countries and Brazil, seemingly threw their weight behind the chair’s draft text on OCOF disciplines at the TNC meeting, said people familiar with the discussions. The chair, Ambassador Einar Gunnarsson of Iceland, apparently stated at the TNC meeting on 15 July that he is not going to reconcile the objections raised by India, several least-developed countries from Africa, the Russian Federation, and Indonesia with the draft proposals, said people familiar with the discussions. Even though the draft proposals on OCOF subsidies fail to come anywhere close to the United Nations Sustainable Development Goal 14.6, the chair and the chairperson of the Doha Trade Negotiations Committee (TNC), WTO Director-General Ms Ngozi Okonjo-Iweala, seemed somewhat indifferent that it will add to sustainability, said people familiar with the discussions. Surprisingly, neither the chair’s nor the DG’s statements were posted on the WTO’s website at the time of writing this article. UN SDG 14.6 states: “by 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to IUU [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 WTO fisheries subsidies negotiation.” Yet, the DG apparently echoed that the proposed agreement is consistent with the UN SDG 14.6, knowing full well that it is untrue, said a trade envoy who asked not to be quoted. In contrast to the current Director-General, the previous Directors-General like Pascal Lamy of France and Roberto Azevedo of Brazil were steeped in substance and substantive arguments in the negotiations in any area, even if they succeeded or failed, said a former trade envoy who asked not to be quoted. RESPONSES The “Friends of the Fish” group hailed the draft additional provisions on OCOF subsidies as a lifetime opportunity by apparently ignoring all the valid criticisms raised against the draft additional provisions, including the allegedly “asinine” notification requirements, said people familiar with the discussions. The US, which appears to be getting the new Fisheries Subsidies Agreement (FSA) “for free” without any payment while all the other members are being forced to pay for Washington’s decision to cripple the Appellate Body, appears to have said that the draft text contained maximum flexibility in terms of special and differential treatment (S&DT), insisting that it will not agree to any additional S&DT flexibilities, said people familiar with the discussions. Brazil, which had opposed the draft FSA text at the WTO’s 13th ministerial conference (MC13) in Abu Dhabi while linking it with the failed agriculture outcome, is understood to have said that it is ready to accept a deal on the FSA on its own standing without any linkage with agriculture, said people familiar with the discussions. China is regarded as one of the largest OCOF subsidizers, and along with the EU, is engaged in distant-water fishing. The chair seemingly chose to dilute the distant-water fishing provisions and its notification requirements, said several fisheries experts, who asked not to be identified. “On fisheries,” China’s trade envoy, Ambassador Li Chenggang, said that he appreciated the “Chair’s efforts and is ready to explore consensus to conclude the negotiations on the basis of the last week’s version.” “In spite of paramount challenges,” the Chinese trade envoy said, “we still believe further efforts should be made for its conclusion at the upcoming GC meeting.” Ambassador Li said China supports the chair to “continue his consultation with those who have concerns on the latest text in the next few days, with engagement of the GC chair and the DG.” China said, “it is our sincere hope that consensus can be reached with efforts and compromises by all.” “In the meantime, we believe that no member should feel compelled to join consensus and that is one of the essences of the inclusiveness of the negotiations,” the Chinese envoy argued. “Therefore,” the Chinese envoy suggested, “in the next week GC, if a very few members are not yet in a position to join consensus, a creative way should be explored, i.e., to provide such members with possibilities to join in the future and at this moment to remain outside the agreement, and to allow at least the vast majority of members to collectively, responsibly and actively take measures to tackle issues of fisheries sustainability with a binding agreement.” China seemed concerned that “the Fish cannot wait any longer,” while hoping that “members temporarily outside the agreement will take the responsibility to design their fisheries development policies with the end [goal] of sustainable development in mind.” Colombia, one of the leading South American countries known for its bio-resources and protection of the environment, echoed that the chair’s draft text is part of the UN sustainability initiatives, said people familiar with the discussions. OBJECTIONS In a statement at the meeting, Ambassador Dandy Iswara of Indonesia said: “While there are some elements that are heading in the right direction, we view the balance is still tipped to the other side.” Indonesia said, “the side which continues to favour the biggest subsidizers and practices, that have been well known for contributing the most to overfishing and overcapacity.” Ambassador Iswara said “achieving sustainability will also require us to protect the small-scale and artisanal fishers who fish for livelihood, and not for profit,” adding that he is waiting for “our capital assessment on the text, and we will put forward suggestions to further improve the text.” India, which submitted three detailed proposals criticizing the chair’s draft text on 11 July, made its opposition known to the draft additional provisions on OCOF subsidies, while seeking substantial negotiations on the overall architecture of the seemingly questionable two-tiered sustainability criteria, said people familiar with the development. Several least-developed countries (LDCs) from Africa raised a “red flag” on the seemingly asymmetrical provisions on special and differential treatment, particularly for LDCs graduating to developing country status, said people who asked not to be quoted. Without opposing the draft text on OCOF subsidies, Russia apparently said that it would need at least one more month to evaluate all the proposed OCOF disciplines, said people familiar with the negotiations. +
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