WTO summit on diesel subsidies puts fishing industry on alert

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The day has come. After sustained delays, mainly due to the pandemic, 164 countries affiliated with the World Trade Organization (WTO) will this week in Geneva discuss one of the most decisive aspects for the future of global fisheries: subsidies. It is marked in red on the agenda of the WTO’s XII Ministerial Conference and is more than a lethal context for an industry overwhelmed by the prices of fuel, electricity, shipping or materials. Full, In the eyes of this supranational entity and environmental organizations, aid for the purchase of diesel is one of the major contributors to overfishing.. In all previous articles for this discussion with numerous amendments, such subsidies have always been included as an incentive. anomaly ban. However, there is good news, at least for now. According to sources from European fisheries employers Europêche, “the issue of banning exemptions for diesel seems to be left out.” But the industry is on the alert: “We have a long game ahead of us”.

The question is twofold: Does subsidized diesel in the European Union (and Canada, Australia or the United States) lead to overuse of resources? Second: can the tax exemption applied in Spain, for example, be considered a subsidy? It’s not for Europêche and it’s a red line that Brussels put on the table. This is a subject of great controversy, as outlined in the final agreement to be submitted to WTO members’ scrutiny. “Another aspect of the fuel debate is that there are members who argue that fuel tax reduction programs should be excluded entirely from the deal,” the head of the negotiating table said in his final document. James Willis.

But for other states, “fuel subsidies, including tax reduction programs, are some of the most harmful subsidies to the sustainability of fisheries.” In his letter, the differences were so great that “it was recognized that both the content and location of this provision would require further study and reflection by members.” However, the sword of Damocles hanging over the Galician fishing fleet was supposedly Fishing subsidies agreement has not been changed. “No Member shall subsidize or maintain fishing or fisheries-related activities that contribute to overcapacity or overfishing,” it says verbatim. And he continues: “For the purposes of this paragraph, subsidies that contribute to overcapacity or overfishing include: […] fuel, ice or feed intake”. In short, discussions about making it illegal have apparently been stalled, but the threat has not disappeared.

The last year the Treasury provided disaggregated data on exempt supplies for ships was 2015. The decline has continued in the last three years due to the mild weather and the decline in the trawler fishing fleet.” Report: There were 276 million liters sold for use in fishing, compared to the more than 1,000 liters used for other subsidized activities. Six years ago, 432 million liters had been exceeded; fleet did not stop shrinking.

WTO equalizes financial aid and direct subsidies in its offer. And the Chinese example, for example, is very different. researcher illustrated Zhang Hongzhou at the conference China as a naval power (China as a naval power) was organized by the American CNA in 2015. “The amount of subsidy is based on the horsepower of the ship, regardless of the actual amount of fuel consumed and where to fish. The more capacity you have, the greater the help.” And those used by Beijing are huge. Study Expanding the global debate on harmful fishing subsidies It calculated more than $18,000 million in annual subsidies from the Asian continent.

AGREEMENT

Differences

“Another aspect of the fuel debate is that there are Members who argue that fuel tax rebate programs should be completely excluded from the scope of the Agreement. However, others are strongly against it, including those who want to include all fuel subsidies, whether specific under the Agreement or not.

Position on the relief

“In the members’ view, fuel subsidies, including those in the form of tax reduction programs, are some of the most harmful subsidies to the sustainability of fisheries if the subsidy is found to be, so there is no justification for removing these programs from the Agreement. given their interest in sustainability”.

Loyalty

“Each Member shall notify the Committee in writing annually of any fuel subsidies granted or maintained by a Member for fishing and fisheries-related activities.”

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