Back to the List of Documents

COFI:FT/VII/2000/8

Table of Contents

INTRODUCTION

FAO TASK FORCE

SUGGESTED ACTION BY THE SUB-COMMITTEE

INTRODUCTION

1. At its Sixth Session, "the Sub-Committee noted that the issue of subsidies is discussed in various fora, and that FAO has a role to play in compiling and disseminating information on subsidies at a global level. Many delegations stressed that the use of subsidies could aggravate over-exploitation of resources and distort trade, while other delegations underlined that in some cases subsidies may be necessary, for example, to secure employment and food security.¹

2. The 23^rd Session of the Committee on Fisheries made explicit references to fishery subsidies and the role of FAO, when discussing and approving the report of the Sixth Session of the Sub-Committee on Fish Trade. The Committee made similar considerations when adopting the International Plan of Action for the Management of Fishing Capacity (IPoA). The implementation of the IPoA has been assigned high priority by the FAO Ministerial Meeting on Fisheries in March 1999. The IPoA contains specific references and recommendations related to fishery subsidies² in the context of the management of fishing capacity.

3. During the meeting of the WTO Committee of Trade and Environment (CTE) (Geneva, 29-30 June 1999) in which the IPoA was presented, it was recommended that FAO be invited to report to its next meeting "on the main elements of an indicative work programme aimed at addressing the impact of subsidies and other factors which contribute to overcapacity and unsustainability in fisheries". This request was met in October 1999.

4. Fishery subsidies and their impact on fish trade and resource sustainability issues are a familiar subject to the Fisheries Department. Several studies discussing and/or trying to evaluate such impact have been published on the subject in the past, touching either one or the other or both issues. Recently the Fisheries Department has been requested to devote additional efforts to this matter. Apart from FAO, several other international organizations have ongoing activities regarding fishery subsidies (OECD, WTO and APEC).

FAO TASK FORCE

5. In order to fulfil the mandate of FAO member countries to address the fishery subsidy issue in relation to fish and fish products, trade and fishery resource sustainability, a Task Force on Fishery Subsidies was established in the FAO Department of Fisheries. The purpose of this Task Force is to contribute to the assessment of the impact of subsidies on fishery resources, sustainability and subsequently on international trade in fish and fish products. This Task Force will perform its duties in accordance with the mandate provided to FAO by member countries, in a technical environment open to discussion of all positions on the subject, taking full advantage of the available inter-disciplinary technical resources inside the Fisheries Department and in close inter-relationship with other relevant organizations and individual specialists connected with the issue outside the Organization.

6. The Task Force will:

• act as Departmental focal point and advisory group in all matters related to fishery subsidies
• monitor and review the institutional and technical discussions and contributions on fishery subsidies taking place worldwide and report on findings
• collect and disseminate information on fishery subsidies
• maintain a fluid relationship and exchange of information with other organizations relevant to the matter
• provide information and eventually technical support for the related activities in the Sub-Committee on Fish Trade and toward the implementation of the IPoA on the Management of Fishing Capacity

7. The workplan of the FAO Task Force will include, in principle, four steps:

Step 1. Review of fishery subsidies. Due to concerns about their possible undesirable effect, member countries are examining the role of subsidies and economic incentives in relation to international trade, environment and sustainable development issues, particularly their role with regard to trade of fish and fish products and to fishery resources sustainability. It seems that prior to assessing the economical and social implications of fishery subsidies, there is a need to conduct a technical review of subsidy concepts and modalities in fisheries. This would contribute to the technical feasibility of an effective measurement of the impact of subsidies in fisheries. To achieve this, the following activities are envisaged.

• perform a thorough and exhaustive review of the forms of subsidies in fisheries, to establish a common technical baseline for discussion
• review on this basis the likely impact of subsidies on fishery resources sustainability
• review on the same basis their impact on international trade in fish and fishery products

Step 2. Expert Consultation. A group of experts will be convoked to examine the studies prepared in Step 1 and all other relevant information. They will contribute technical inputs to the preparation of a report to be submitted to COFI. Cooperation with other relevant IGOs will be sought. The envisaged timing of this expert consultation is mid 2000.

Step 3. Dissemination. A report with findings, conclusions and recommendations will be distributed to member countries before the 24th Session of COFI for review and discussion.

Step 4. Measurement of impact of fishery subsidies. During COFI, member countries may wish to request FAO and other relevant international organizations to initiate an activity with the purpose of measuring the impact of subsidies in fisheries based on the report of the Expert Consultation detailed in Step 3.

SUGGESTED ACTION BY THE SUB-COMMITTEE

8. The Sub-Committee may wish to endorse the creation of the FAO Task Force on Fishery Subsidies, and express its views on its Terms of Reference and its Work Plan as outlined in paragraph 6 and 7 above.

1 Paragraph 17, Report of the Sixth Session of the COFI Sub-Committee on Fish Trade.

2 "When developing their national plans for the management of fishing capacity, States should assess the possible impact of all factors, including subsidies, contributing to overcapacity on the sustainable management of their fisheries, distinguishing between factors, including subsidies, which contribute to overcapacity and unsustainability and those which produce a positive effect or are neutral". (paragraph 25 - International Plan of Action for the Management of Fishing Capacity).

"States should reduce and progressively eliminate all factors, including subsidies and economic incentives and other factors which contribute, directly or indirectly, to the build-up of excessive fishing capacity thereby undermining the sustainability of marine living resources, giving due regard to the needs of artisanal fisheries". (paragraph 26 - International Plan of Action for the Management of Fishing Capacity).

"FAO will, as and to the extent directed by its Conference, collect all relevant information and data which might serve as a basis for further analysis aimed at identifying factors contributing to overcapacity such as, inter alia, lack of input and output control, unsustainable fishery management methods and subsidies which contribute to overcapacity". (paragraph 45 - International Plan of Action for the Management of Fishing Capacity).