Indian fishermen in a quandary over WTO’s new fishery subsidy agreement

India and other developing countries need support to protect the livelihoods of low-income fishermen.

The World Trade Organization’s (WTO) 12th Ministerial Conference which concluded in Geneva adopted an Agreement on Fisheries Subsidies and a protocol amending the WTO Agreement was adopted. The Agreement applies to subsidies that are specific to fishing and other fishing-related activities at sea.

It was also agreed that the negotiations shall continue based on the outstanding issues for additional provisions that would achieve a comprehensive agreement on fisheries subsidies.

Depleting Marine Resources

It is noteworthy that a proposal was made in WTO to prohibit fisheries subsidies as due to excessive fishing in the world, the marine resources are fast depleting, hence the subsidy being given for fishing should be stopped, so that the exploitation of this natural resource remains within limit. In fact, it is also a part of Sustainable Development Goals of the United Nations which provide that illegal, unreported and unregulated (IUU) fishing should be curbed.

There is hardly any disagreement, that due to excessive fishing in the world, marine resources are fast depleting. But the question here is who is guilty of overfishing? Is it the small fishermen of our country or other developing countries, with limited means or the big companies of developed countries who undertake deep-sea fishing with machines in big ships.

A draft was proposed before the agreement, in which it was said that it would be mandatory to end the subsidies given by developing countries for IUU fisheries, within seven years or before 2030. India had refused to accept the proposal and had said that developed countries give 3000 to 5000 times more subsidy per fisherman, as compared to India. It was pointed out that rich countries provide much greater support measures than the assistance provided by developing countries to their traditional fishermen. It is notable that according to data from OECD Fisheries Subsidy Estimates (2014-16) and the FAO yearbook, Fisheries and Aquaculture Statistics, 2016, Denmark provides subsidy of $75,578 per fisherman, Sweden $65,979, New Zealand $36,512, UK $2,146, and India provides subsidy of hardly $15 per fisherman.

In the negotiations, India sought a 25-years’ transition period to eliminate fisheries subsidies as India and other developing countries need support to protect the livelihoods of low-income fishermen. This assistance includes subsidies given to fishermen for construction, acquisition, modernisation or upgrading of vessels. Subsidies for the purchase of fishing gear and engines, machines and equipment for vessels, including refrigerators, and insurance and social fees are important for the future development of the fishing sector.

Threat To Fisherman’ Livelihood

For a long time, traditional fishermen in India and other developing countries have been facing a major threat to their livelihood from large ships/ trawlers, owned by big corporate that engage in deep sea and distant water fishing catching large portion of fish and other marine resources, in the process, depriving small fishermen of their share.

In 1974 only 10 percent over-fishing was taking place, today over-fishing has extended to 34 percent. The United Nations' concern about the extinction of marine resources is justified, but the measures being adopted by the World Trade Organization for this purpose are not going to solve the problem, it will rather harm the livelihood of the small fishermen of the world. Due to the continuous decrease in availability of fish, the livelihood of people living in coastal areas has been adversely affected and their poverty is increasing.

Today about 50 crore people in the world depend on fishing, and they account for hardly 40 percent of total fishing. Big companies undertake fishing in the deep sea, due to which the fishery resources in the oceans are gradually disappearing. There are no clear cut restrictions on the subsidies given to overfishing by developed countries to the companies that own these fleets. Although in the last ministerial conference, India and developing countries got differential treatment for fishing up to 200 nautical miles, but that was only for two years.

As per Article 12 of the Agreement on Fisheries Subsidies if comprehensive disciplines are not adopted within four years of the entry into force of this Agreement, and unless otherwise decided by the General Council, this Agreement shall stand immediately terminated. In this regard, preliminary talks have begun before the WTO’s 13th Ministerial Conference to be held in Abu Dhabi in February 2024.

Catching The Big Fish

Though, some concerns and questions are being raised on the unofficial room document circulated by the chair of the group. The developing countries say that the concept of subsistence fishing, which is given in the document, is completely different from the reality of resource and income poor, and who undertake fishing for their livelihood. The worst part is that there is no mention of large-scale fishing in this unofficial document. News reports indicate that developing countries maintain that subsidies to large-scale industrial fishing should have more stringent provisions than other types of subsidies. Indonesia has proposed that there should be least flexibility in subsidies for fishing in large-scale and distant waters, under the relevant part of the draft. There is news of African Group exerting pressure to focus on those providing large-scale subsidies.

Regarding the issue of subsidies on fisheries in WTO, the major issue now is whether there will be any restriction on the large scale and deep sea fishing by big corporations. And whether the small fisherman of developing countries, whose livelihood depends upon the traditional fishing, they will be allowed to be given subsidies by their respective governments. As of now, it seems that developed countries are pressurising for restricting subsidies to the small and traditional fishermen of the developing countries in the name of illegal, unreported and unregulated fishing. But they are not serious about restricting the ‘irresponsible’ fishing in the distant sea by the big corporations, who are the real culprits of depleting the ocean resources.

India has to take a tough stand at Ministerial Conference 13 to protect interest of its small fishermen who require support both financially and for modernising their fishing equipment, boats etc. In the recent past we have seen death by suicide of stressed fishermen across various parts of India and stoppage of subsidies, whatever meagre amount is being given, would aggravate the situation.

Ashwani Mahajan is a professor at PGDAV College, University of Delhi, and the national co-convener of the Swadeshi Jagran Manch. Views are personal, and do not represent the stand of this publication.