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WTO members make progress in negotiations on fisheries subsidies

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World Trade Organization (WTO) members have begun work on a draft consolidated document towards an agreement on reducing harmful fisheries subsidies. Members reviewed draft text on subsidies that contribute to overcapacity and overfishing, distant water fisheries subsidies, transparency provisions, and special and differential treatment of developing countries and least developed countries (LDCs).

The Negotiating Group on Rules summoned a series of meetings from 14 to 18 September. Participants attended meetings, technical discussions and informal consultations, led by the Chair of the Negotiating Group, Ambassador Santiago Wills (Colombia), in person and through virtual connections.

On overcapacity and overfishing, Members discussed whether and how to ban subsidies for fishing outside their waters or outside waters regulated by Regional Fisheries Management Organizations (RFMOs).). Proponents argued that such a provision would prevent countries from irresponsibly exploiting the high seas, while others said international treaties allow fishing in areas beyond national jurisdiction (ABNJ). Some members with smaller fishing fleets said they would like “room to increase their fishing capabilities.” Members also discussed how to determine which developing countries and LDCs would be allowed to maintain fisheries subsidies in their own waterss, including consideration of proposed criteria such as annual catch volumes and national income to determine exemptions. Some members expressed concern that these criteria would send the “wrong message” about protecting marine health. One member suggested including a placeholder for a transition period for developing country members to comply with subsidy bans.

Members also discussed whether and How to allow governments to maintain subsidies, such as allowing fishermen to buy boats and fuel, if governments can show they have policies in place to ensure the health of their fish stocks. Some members said this provision reduces the deal's ambition. Others said the mandate of the negotiations is only to eliminate subsidies where harm is seen. Some members stressed the importance of ensuring the biological sustainability of fish stocks.

About notification, transparency and oversight, eight members submitted a proposal to replace the placeholder in the Chair’s draft text. Proponents said the provision will help members monitor each other’s implementation of subsidy restrictions. Other members opposed replacing the text, preferring to move forward on subsidy bans first, while others reiterated concerns about the burden on developing countries that may not have the capacity to comply with notification requirements.

The President noted the 2020 deadline for concluding talks, acknowledging that some members had urged concluding negotiations by the end of 2020., in line with SDG target 14.6. He also acknowledged that other members had expressed concerns about the feasibility of concluding the talks before the deadline in light of the current challenges posed by the COVID-19 crisis. The Chair said that work will “continue to be organized” with the aim of continuing to work towards the end-of-year deadline, to the extent possible. The Chair will consult with members in the run-up to the next set of meetings, which are scheduled for 5-9 October. He concluded by praising members' efforts to achieve compromise during the negotiations and the agreement on how to sequence the negotiations to move forward..

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