1. When are fish subsidies harmful? A traffic light approach
David Vivas Eugui, Legal Officer, TED/DITC, UNCTAD

2. Setting the course…. What do the WTO and UN mandates tell us?
What was listed a potentially subject to prohibition in the WTO Rules Chair Draft of 2007?
Quick overview of main components of the WTO Member States Proposals
Testing a "traffic light approach" on fish subsidies?
Red light
Yellow light
Green light

3. What do the WTO and UN mandates tell us?
WTO Hong Kong Ministerial:
"(…) disciplines on subsidies in the fisheries sector, including through the prohibition of certain forms of fisheries subsidies that contribute to overcapacity and over-fishing (..)",
SDG 14
"(…)By 2020 prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated (IIU) fishing (…)"
UNCTAD Mafiakiano
" (…) analysis of fisheries subsidies that lead to overcapacity and overfishing and subsidies that contribute to illegal, unreported and unregulated fishing and the challenges they pose to developing countries, particularly in connection with the conservation of marine resources and food security"

4. Additionally there was a prohibition to:
What was listed a potentially subject to prohibition in the WTO Rules Chair Draft of 2007?
The focus was on subsidies that directly affect fishing and related activities:
Acquisition, construction of vessels
Operating costs
Income and price supports
Port infrastructure predominantly for fishing and related activities
Onward transfer of access rights to fisheries within the jurisdiction of another Member
Transfer of access rights
IUU fishing
Additionally there was a prohibition to:
"benefits" of which are conferred on any fishing vessel or fishing activity "affecting fish stocks that are in an unequivocally overfished" condition shall be prohibited

5. 2016-2017 WTO Member States Proposals
Scope
SDG 14.6
Marine resources
Some proposed carve outs
Non-specific subsidies
Areas beyond national jurisdiction (ABNJ)
Aquaculture
List of prohibitions
Subsidies to IUU (activity + impact)
Subsidies that contribute to overfishing (impact)
Subsidies that contribute to overcapacity (level of fishing effort)
List of exemptions
Positive list of subsidies that do not contribute to overfishing (EU proposal)
Horizontal exceptions
S&DT options

6. Most harmful Fish subsidies (Potential RED LIGHT box)
IUU fishing (activity + impact)
States should not be using public resources to fund
illegal activities
IUU fishing is estimated to be about 10% of all capture
It brings illegally harvested and fraudulent products into markets
It may not pay taxes
May be links to other criminal activities (slave labor, smuggling and drugs dealing)
Overfishing (impact based)
31% of stocks below sustainability levels (FAO 2016)
It breaches fish management systems and internal and regional quotas
Undermines future of fishers and livelihoods
Fuel subsidies (input based)
Most important operational cost (e.g. in interviews carried out by UNCTAD with fleets owners, it may account 70-80% of expedition cost in the tuna sector)
Contradictory with environmental policies (it generates emissions and pollutes the environment)
Without fuel subsidies long distant fishing will not be economically feasible
Distort prices, trade and generate emissions
The issue of specificity
Acquisition, construction of vessels
Other operation costs
Income and price supports
Generate over capacity
Can contribute to overfishing
Distort prices and trade
Ships can be sold and transferred passing on the problem
Do not provide a long term solution to the fishers and to coastal livelihoods

7. Fish subsidies with mixed effets (Potential YELLOW LIGHT Box)
Port infrastructure predominantly for fishing and related activities
Increases landing and stocking capacity
The issue of specificity
Subsidies and small-scale commercial (artisanal) fishing are allowed
Provided there are adequate and proportional stocks management measures
Difficulties in finding definitions or criteria
Onward transfer of access rights to fisheries within the jurisdiction of another Member
If Member to Member, not consider a subsidy
Provided no overfishing
Introduction of energy efficient/low emission engines in existing vessels
May increase or sustain capacity but reduces emissions and fuel consumption
Fish subsidies with positive effets (Potential GREEN LIGHT Box)
Compliance with food security, environmental and social sustainability instruments (i.e. FAO, ILO, UNEP, etc.)
Creation and strengthening of fish management systems
Ships decomissioning
Safety and labour protection of the crew
Shift in Economic activities
Marine R&D
Sustainable aquaculture

8. Many thanks "the only problem with nature is human nature…"
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