MercoPress. South Atlantic News Agency

Argentina and Brazil propose maintaining WTO fishing subsidies

The proposal includes new norms that allow subsidising vessel construction

The governments of Argentina and Brazil on Monday presented a joint proposal to the World Trade Organisation (WTO) that would allow subsidies to developing countries for construction, purchase or repair of fishing vessels, and support for fuel supply and other fishery activities related to the livelihood of fishers and their families.

In the document presented before the WTO Regulations Committee, both governments highlight the fact that their proposals will fit in the general fishery subsidies framework which is based on a broad prohibition of aid but includes specific exceptions. The target is aimed at strengthening exploitation of non-endangered fishery resources and exportation of species from Latin American countries. The Argentine-Brazilian proposal was well received particularly by Ecuador, Costa Rica, Chile, India and China, which are among the 151 member countries of the WTO, according to EFE. European Union (EU) delegates agreed in general consensus, though they highlighted that provisions for abuse prevention by the developing countries were not clear. They regretted that the proposal did not include the need for special treatment on fisheries subsidy issues for small and vulnerable economies. Australia showed concern over the concession of special treatment to developing countries fearing they will be used by certain developed nations as screens in aiding their fishing sector registering vessels under flags for their convenience. The US delegation deemed the Argentina-Brazil contribution as "very valuable." The US delegates clearly stated that developing countries should not be granted carte blanche. In the past, the US Government presented a proposal to eliminate the fishery sector subsidies, targeting eradication of over-exploitation of fishing resources. The mentioned proposal promotes the prohibition of all subsidies which distort trade, but it considers exceptions in the case of poorer nations and research subsidies. Courtney Sakai, campaign director of the environmental organisation Oceana said, "The proposal provides a real, workable approach that can potentially accommodate the interests of developing members in promoting a vibrant fishing sector while providing for conservation and resource sustainability." These fishery subsidy negotiations form part of the Doha Round, where the 151 WTO member nations work towards reducing tariffs on agriculture, industry, and services, among other things, to expand trade and benefiting developing nations. (FIS)