When are subsidies harmful? Flaminia Tacconi 12/10/2017

What is a subsidy? Financial contribution from public entities to the fishing sector that provides private benefits: Direct subsidies: structural aid (EMFF), de minimis state aid and block exemptions. Indirect subsidies: Exemptions from taxation or other costs: fuel tax exemptions, social security exemptions, other exemptions under national law.

International Context Facts: “More than 30 % of fish stocks are being overfished” (FAO report 2016) Actions: SDG 14 on oceans with concrete target to prohibit certain forms of subsidies which contribute to overcapacity and overfishing by 2020 . WTO negotiations aiming at prohibiting capacity enhancing fisheries subsidies that can be environmentally damaging.

EU context CoA report (2011): EU subsidies criticised for having contributed to increasing fleet capacity The EMFF (2014): Capacity enhancing susbidies and other harmful subsidies still included EU Parliament (2017): proposes in own initiative report to re-introduce aid for construction of fishing vessels in outermost regions

What is a ‘harmful’ subsidy in fisheries? What is bad? Capacity enhancing subsidies or susbidies that maintain artificially fishers in the sector. What is good ? ‘Public money for public goods’ meaning subsidies that aim at achieving the environmental objectives of the CFP. What makes it worst? Lack of transparency, bad reporting and lack of conditionality.

What do fisheries need for the future? More CFP Coherence with international and EU context Focus on good subsidies Political will to go for it!

Thank you Flaminia Tacconi ftacconi@clientearth.org www.clientearth.org @ClientEarth