Facts for Prelims (FFP)
Source: ET
Context: Trade experts and civil society members are urging India not to ratify the fisheries subsidies agreement recently agreed upon by the World Trade Organization (WTO) members.
What is the Fisheries Subsidies Agreement at WTO?
The fisheries subsidies agreement agreed upon by the WTO prohibits subsidies for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks. It also restricts subsidies for fishing on the high seas, outside the jurisdiction of coastal countries and Regional Fisheries Management Organizations.
Transition Period: Developing countries and Least Developed Countries (LDCs) are granted a two-year transition period under Special and Differential Treatment (S&DT) and are not obligated to implement disciplines during this period.
Exemptions:
The agreement allows subsidies for vessels or operators not engaged in IUU fishing and permits subsidies to rebuild overfished stocks to a sustainable level.
Advantages for India:
For India, the agreement is seen as crucial to combat large-scale IUU fishing that impacts coastal communities’ livelihoods and depletes fisheries resources.
Concerns:
| Concerns for India | Description |
| 1. Impact on Livelihoods | Reduction in subsidies may negatively affect small-scale and traditional fishers’ livelihoods and income. |
| 2. Competitiveness | Indian fishing industries may face challenges competing with heavily subsidized fishing operations from other nations. |
| 3. Resource Access | Restrictions on subsidies for fishing in certain areas may limit Indian fishing vessels’ access to high-seas fishing grounds, affecting their ability to catch valuable fish stocks. |
| 4. Impact on the Fishing Industry | The agreement may lead to increased operational costs for the fishing industry, impacting its overall competitiveness. |
| 5. Market Disruptions | Reduced subsidies for certain fishing practices may lead to market disruptions and changing dynamics in the industry. |
| 6. Negotiation Leverage | India’s bargaining power in international fishing negotiations may be affected by the new agreement’s provisions. |
| 7. Unequal for India | Concerns have been raised that the agreement is unequal and does not address the overfishing and overcapacity issues adequately |
India’s stand
India, being a low fisheries subsidizer with a sustainable approach, emphasizes that advanced fishing nations that have historically provided substantial subsidies and contributed to fish stock depletion should bear more responsibility based on the ‘polluter pay principle’ and ‘common but differentiated responsibilities.’
Suggestions:
Experts have suggested India initiate talks for a comprehensive agreement that addresses industrial fishing nations’ disciplines related to overcapacity and overfishing.
India has not yet ratified the agreement.
