WTO Agreement on Fisheries Subsidies: Is It Enough to Combat IUU Fishing in Asia-Pacific?
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Keywords

Agreement on Fisheries Subsidies
IUU Fishing
Subsidies
WTO

Abstract

Government subsidies on fisheries are supposed to provide welfare and development for the country. Nevertheless, some government subsidies contribute to a more fisheries crisis, including Illegal, Unreported, and Unregulated fishing (IUU Fishing). Subsidies in the fisheries sectors were estimated in 2018 to be as high as $35.4 billion worldwide, of which an estimated $22 billion qualified as harmful subsidies.  Therefore, the World Trade Organization (WTO) in June 2022 adopted the Agreement on Fisheries Subsidies (AFS) to end prohibited fisheries subsidies. Henceforth, two-thirds of WTO members must deposit their instruments of acceptance to make the agreement viable. This normative legal research will utilize primary and secondary legal materials. The author intends to analyze these materials with a statutory and historical approach to examine (i) subsidy issues resulting in IUU Fishing, (ii) the AFS and its urgency, and (iii) whether AFS is sufficient to eliminate IUU fishing - in the Asia-Pacific region. This article argues that the AFS needs to be enforced to reduce harmful subsidies. However, the AFS is still not sufficient to thoroughly combat IUU fishing in the Asia-Pacific region, as it does not regulate certain issues such as overfishing and overcapacity, as well as banned fuel subsidies.

https://doi.org/10.22146/jwts.v9i2.10931
PDF

References

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Arthur, R., Heyworth, S., Pearce, J., Sharkey, W. (2019). The Cost of Harmful Fishing Subsidies. London, IIED Working Paper. http://pubs.iied.org/16654IIED.

Asia-Pacific Fishery Commission (APFIC). (2018). Regional Overview of the Status and Trends of Fisheries and Aquaculture in the Asia-Pacific Region 2016. FAO.

Bahety, S., & Mukiibi, J. (2017). WTO Fisheries Subsidies Negotiations Main Issues and Interests of Least Developed Countries. CUTS International Geneva. https://unctad.org/system/files/non-official-document/ditc-ted-21032017-OceansForum-CUTS.pdf.

ClientEarth. (2020). ClientEarth’s Position on Fuel Subsidies in the Fisheries Sector: Let’s Stop Fuelling Environmental and Social Disaster. ClientEarth. https://www.clientearth.org/media/ehcptcis/clientearth-s-position-on-fuel-subsidies-in-the-fisheries-sector-october-2020.pdf.

Damania, R., Balsec, E., Fontaubert, C., Gill, J., Kim, K., Rentschler, J., Russ, J., & Zaveri, E. (2023). Detox Development: Repurposing Environmentally Harmful Subsidies. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-1916-2

Damme, I. V. (2020). Reflections on the WTO Negotiations on Prohibiting IUU Fishing Subsidies. Global Subsidies Initiative: International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/wto-negotiations-prohibiting-fishing-subsidies.pdf.

Darmawan, A. R. (2021, November 10). Australia-Indonesia: Burn the Boats. The Interpreter. Australia-Indonesia: burn the boats | Lowy Institute

Delpeuch, C., Migliaccio, E., & Symes, W. (2022). Eliminating Government Support to Illegal, Unreported, and Unregulated Fishing. OECD Food, Agriculture and Fisheries Paper. https://www.oecd-ilibrary.org/docserver/f09ab3a0-en.pdf?expires=1700826073&id=id&accname=guest&checksum=F81A4C46ED9FD1EECB715E343CDB480F

EJF. (2018). Out of the Shadows: Improving Transparency in Global Fisheries to Stop Illegal, Unreported, and Unregulated Fishing. The Environmental Justice Foundation. https://ejfoundation.org/resources/downloads/Transparency-report-final.pdf.

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FAO. (2019). Combatting and Eliminating Illegal, Unreported, and Unregulated (IUU) Fishing in the Asia-Pacific Region. Food and Agriculture Organization of the United Nations. https://www.fao.org/3/ca4509en/ca4509en.pdf.

FAO. (2022). The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation. Rome, FAO. https://doi.org/10.4060/cc0461en

Gutiérrez, M., Daniels, A., Jobbins, G., Almazor, G. G., Montenegro, C. (2020). China’s Distant Water Fishing Fleet. ODI. https://odi.org/en/publications/chinas-distant-water-fishing-fleet-scale-impact-and-governance/.

Harper, S. Bevacqua, D., Chudnow, R., Giorgi, S. Guillonneau, V., Manach, F. L., Sutor, T., Sumaila, U. R. (2012). Fuelling the Fisheries Subsidy Debate: Agreements, Loopholes, and Implications. Fisheries Research 113,143-146. https://doi.org/10.1016/j.fishres.2011.10.007.

He, J. (2022). A Jurisdictional Assessment of International Fisheries Subsidies Disciplines to Combat Illegal, Unreported, and Unregulated Fishing. Sustainability, 14,14128. https://doi.org/10.3390/su142114128.

https://www.kompas.id/baca/nusantara/2023/08/14/menangkap-ikan-secara-ilegal-di-natuna-bakamla-seret-kapal-ikan-vietnam-ke-batam

Hung, C. M., Weng, Y. (2012). Fishery Subsidies, Illegal Fuel Trading, and Conservation. Marine Resource Economics, 27,3. https://www.jstor.org/stable/10.5950/0738-1360-27.3.253.

IISD SDG Knowledge Hub. (2022). WTO Members Clinch a Deal on Fisheries Subsidies. International Institute for Sustainable Development (IISD). https://sdg.iisd.org/news/wto-members-clinch-a-deal-on-fisheries-subsidies/.

Irschlinger, T. Sharma, S. (2022). Fuel Subsidies to Marine Fisheries in India. The IISD and Global Subsidies Initiative. https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-india.pdf.

Laje, D., Shoichet, C. E. (2016, March 16). Argentina Sinks Chinese Vessel, Cites Illegal Fishing. CNN. https://edition.cnn.com/2016/03/15/americas/argentina-chinese-fishing-vessel/index.html.

Lee, J. (2019). Subsidies for Illegal Activities? – Reframing IUU Fishing From the Law Enforcement Perspective. Journal of International Economic Law, 00,1-22. doi: 10.1093/jiel/jgz017.

Lennan, M., Switzer, S. (2023). Current Legal Developments World Trade Organization. The International Journal of Marine and Coastal Law, 38,161-177. doi:10.1163/15718085-bja10116.

Lindley, J., Techera, E. J. (2017). Overcoming Complexity in Illegal, Unregulated, and Unreported Fishing to Achieve Effective Regulatory Pluralism. Marine Policy, 81,71-79. http://dx.doi.org/10.1016/j.marpol.2017.03.010

Manifold Times. (2022, June 8). Vietnam: Fishing Vessels With 130,000 Litres Of Unknown Origin Diesel Oil Seized. Manifold Times. https://www.manifoldtimes.com/news/vietnam-fishing-vessels-with-130000-litres-of-unknown-origin-diesel-oil-seized/

Martini, R. (2019). Many Government Subsidies Lead to Overfishing: Here’s a Solution. OECD. https://www.oecd.org/agriculture/government-subsidies-overfishing

Mongabay. (2024). WTO Negotiations Flounder Again Over Banning Unsustainable Fishing Subsidies. Mongabay News. https://news.mongabay.com/2024/07/wto-negotiations-flounder-again-over-banning-unsustainable-fishing-subsidies/.

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Schuhbauer, A., Skerritt, D. J., Ebrahim, N., Le Manach, F., & Sumaila, U. R. (2020). The Global Fisheries Subsidies Divide Between Small- and Large-Scale Fisheries. Marine Science, 7. https://doi.org/10.3389/fmars.2020.539214.

Singh, G. (2017). Subsidies in the Context of the WTO’s Free Trade System, a Legal and Economic Analysis. Springer Cham. https://doi.org/10.1007/978-3-319-62422-8.

Skerrit, D. J. & Sumaila, U. R. (2021). Assessing the Spatial Burden of Harmful Fisheries Subsidies. Fisheries Economics Research Unit Final Report. Fisheries Economics Research Unit. https://oceana.org/wp-content/uploads/sites/18/OceanaDWF_FinalReport.pdf.

Suharsono, A., Irschlinger, T. (2022). Fuel Subsidies to Marine Fisheries in Indonesia. The IISD and Global Subsidies Initiative. https://www.iisd.org/publications/brief/fuel-subsidies-marine-fisheries-indonesia.

Sumaila, U. R., Lam, V., Le Manach, F., Swartz, W., & Pauly, D. (2016). Global Fisheries Subsidies: An Updated Estimate. Marine Policy, 69, 189–193. https://doi.org/10.1016/j.marpol.2019.103695

Sumaila, U.R. (2017). Trade and Sustainable Fisheries. Asian Development Bank Institute Working Paper 676. Tokyo, Asian Development Bank Institute. https://www.adb.org/sites/default/files/publication/230601/adbi-wp676.pdf

Sumaila, U. R., Ebrahim, N., Schuhbauer, A., Skerritt, D., Li, Y., Kim, H. S., Mallory, T. G., Lam, V. W. L., & Pauly, D. (2019). Updated Estimates and Analysis of Global Fisheries Subsidies. Marine Policy, 109. https://doi.org/10.1016/j.marpol.2019.103695.

Sumaila, U. R., Zeller, D., Hood, L., Palomares, M. L. D., Li, Y., Pauly, D. (2020). Illicit Trade in Marine Fish Catch and Its Effect on Ecosystems and People Worldwide. Science Advance, 6,9. https://doi.org/10.1126/sciadv.aaz3801

Switzer, S., Morgera, E., Webster, E. (2022). Casting the Net Wider? The Transformative Potential of Integrating Human Rights Into the Implementation of the WTO Agreement on Fisheries Subsidies. Review of European, Comparative & International Environmental Law, 31,3. https://doi.org/10.1111/reel.12477.

Taal, S. (2022). The WTO Agreement on Fisheries Subsidies. Trade and Environment Week 2022. https://www.wto.org/english/tratop_e/envir_e/session_14_agreement_on_fisheries_subsidies.

Vaughn, B., Dolven, B., Husted, T. F., Bitonto, C. K., O’Regan, K. C., Rosen, W. L., Sutherland, M. D., Wong, L. (2022). China’s Role in the Exploitation of Global Fisheries: Issues for Congress. Congressional Research Service. https://crsreports.congress.gov/product/pdf/R/R47065.

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Arthur, R., Heyworth, S., Pearce, J., Sharkey, W. (2019). The Cost of Harmful Fishing Subsidies. London, IIED Working Paper. http://pubs.iied.org/16654IIED.

Asia-Pacific Fishery Commission (APFIC). (2018). Regional Overview of the Status and Trends of Fisheries and Aquaculture in the Asia-Pacific Region 2016. FAO.

Bahety, S., & Mukiibi, J. (2017). WTO Fisheries Subsidies Negotiations Main Issues and Interests of Least Developed Countries. CUTS International Geneva. https://unctad.org/system/files/non-official-document/ditc-ted-21032017-OceansForum-CUTS.pdf.

ClientEarth. (2020). ClientEarth’s Position on Fuel Subsidies in the Fisheries Sector: Let’s Stop Fuelling Environmental and Social Disaster. ClientEarth. https://www.clientearth.org/media/ehcptcis/clientearth-s-position-on-fuel-subsidies-in-the-fisheries-sector-october-2020.pdf.

Damania, R., Balsec, E., Fontaubert, C., Gill, J., Kim, K., Rentschler, J., Russ, J., & Zaveri, E. (2023). Detox Development: Repurposing Environmentally Harmful Subsidies. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-1916-2

Damme, I. V. (2020). Reflections on the WTO Negotiations on Prohibiting IUU Fishing Subsidies. Global Subsidies Initiative: International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/wto-negotiations-prohibiting-fishing-subsidies.pdf.

Darmawan, A. R. (2021, November 10). Australia-Indonesia: Burn the Boats. The Interpreter. Australia-Indonesia: burn the boats | Lowy Institute

Delpeuch, C., Migliaccio, E., & Symes, W. (2022). Eliminating Government Support to Illegal, Unreported, and Unregulated Fishing. OECD Food, Agriculture and Fisheries Paper. https://www.oecd-ilibrary.org/docserver/f09ab3a0-en.pdf?expires=1700826073&id=id&accname=guest&checksum=F81A4C46ED9FD1EECB715E343CDB480F

EJF. (2018). Out of the Shadows: Improving Transparency in Global Fisheries to Stop Illegal, Unreported, and Unregulated Fishing. The Environmental Justice Foundation. https://ejfoundation.org/resources/downloads/Transparency-report-final.pdf.

European Parliamentary Research Service. (2022). WTO Agreement on Fisheries Subsidies. EPRS Briefing PE 698.842. https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)698842.

FAO. (2001). International Plan of Action to Prevent, Deter, and Eliminate Illegal, Unreported, and Unregulated Fishing. World Trade Organization. https://www.wto.org/english/tratop_e/rulesneg_e/fish_e/2001_ipoa_iuu.pdf

FAO. (2004). Report of the Technical Consultation to Review Progress and Promote the Full Implementation of the International Plan of Action to Prevent, Deter, and Eliminate Illegal, Unreported, and Unregulated Fishing and the International Plan of Action for the Management of Fishing Capacity. https://www.fao.org/3/y5681e/y5681e09.htm#bm9.

FAO. (2019). Asia-Pacific Revenues and Livelihoods Threatened as Billions Lost Annually to Illegal, Unreported, Unregulated Fishing. Food and Agriculture Organization of the United Nations. https://www.fao.org/asiapacific/news/news-detail/Asia-Pacific-revenues-and-livelihoods-threatened-as-billions-lost-annually-to-illegal-unreported-unregulated-fishing-UN-FAO-/en.

FAO. (2019). Combatting and Eliminating Illegal, Unreported, and Unregulated (IUU) Fishing in the Asia-Pacific Region. Food and Agriculture Organization of the United Nations. https://www.fao.org/3/ca4509en/ca4509en.pdf.

FAO. (2022). The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation. Rome, FAO. https://doi.org/10.4060/cc0461en

Gutiérrez, M., Daniels, A., Jobbins, G., Almazor, G. G., Montenegro, C. (2020). China’s Distant Water Fishing Fleet. ODI. https://odi.org/en/publications/chinas-distant-water-fishing-fleet-scale-impact-and-governance/.

Harper, S. Bevacqua, D., Chudnow, R., Giorgi, S. Guillonneau, V., Manach, F. L., Sutor, T., Sumaila, U. R. (2012). Fuelling the Fisheries Subsidy Debate: Agreements, Loopholes, and Implications. Fisheries Research 113,143-146. https://doi.org/10.1016/j.fishres.2011.10.007.

He, J. (2022). A Jurisdictional Assessment of International Fisheries Subsidies Disciplines to Combat Illegal, Unreported, and Unregulated Fishing. Sustainability, 14,14128. https://doi.org/10.3390/su142114128.

https://www.kompas.id/baca/nusantara/2023/08/14/menangkap-ikan-secara-ilegal-di-natuna-bakamla-seret-kapal-ikan-vietnam-ke-batam

Hung, C. M., Weng, Y. (2012). Fishery Subsidies, Illegal Fuel Trading, and Conservation. Marine Resource Economics, 27,3. https://www.jstor.org/stable/10.5950/0738-1360-27.3.253.

IISD SDG Knowledge Hub. (2022). WTO Members Clinch a Deal on Fisheries Subsidies. International Institute for Sustainable Development (IISD). https://sdg.iisd.org/news/wto-members-clinch-a-deal-on-fisheries-subsidies/.

Irschlinger, T. Sharma, S. (2022). Fuel Subsidies to Marine Fisheries in India. The IISD and Global Subsidies Initiative. https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-india.pdf.

Laje, D., Shoichet, C. E. (2016, March 16). Argentina Sinks Chinese Vessel, Cites Illegal Fishing. CNN. https://edition.cnn.com/2016/03/15/americas/argentina-chinese-fishing-vessel/index.html.

Lee, J. (2019). Subsidies for Illegal Activities? – Reframing IUU Fishing From the Law Enforcement Perspective. Journal of International Economic Law, 00,1-22. doi: 10.1093/jiel/jgz017.

Lennan, M., Switzer, S. (2023). Current Legal Developments World Trade Organization. The International Journal of Marine and Coastal Law, 38,161-177. doi:10.1163/15718085-bja10116.

Lindley, J., Techera, E. J. (2017). Overcoming Complexity in Illegal, Unregulated, and Unreported Fishing to Achieve Effective Regulatory Pluralism. Marine Policy, 81,71-79. http://dx.doi.org/10.1016/j.marpol.2017.03.010

Manifold Times. (2022, June 8). Vietnam: Fishing Vessels With 130,000 Litres Of Unknown Origin Diesel Oil Seized. Manifold Times. https://www.manifoldtimes.com/news/vietnam-fishing-vessels-with-130000-litres-of-unknown-origin-diesel-oil-seized/

Martini, R. (2019). Many Government Subsidies Lead to Overfishing: Here’s a Solution. OECD. https://www.oecd.org/agriculture/government-subsidies-overfishing

Mongabay. (2024). WTO Negotiations Flounder Again Over Banning Unsustainable Fishing Subsidies. Mongabay News. https://news.mongabay.com/2024/07/wto-negotiations-flounder-again-over-banning-unsustainable-fishing-subsidies/.

Nasution, R. (2022, August 8). KKP Seized 83 Illegal Fishing Vessels in Jan-Jun 2022 Period. Antara News. https://en.antaranews.com/news/243321/kkp-seized-83-illegal-fishing-vessels-in-jan-jun-2022-period.

Parmentier, Remi. (2016). UNCTAD Trade and Environment Review 2016: Fish Trade. Harmful Incentives: The Case of Fisheries Subsidies. United Nations Conference on Trade and Development. https://unctad.org/webflyer/trade-and-environment-review-2016.

Phillipine. Phillipine IUU Fishing Assessment Report 2021. (2022). DA-Bureau of Fisheries and Aquatic Resources. https://www.bfar.da.gov.ph/wp-content/uploads/2022/08/Philippine-IUUF-Assessment-2021.pdf

Sala, E., Mayorga, J., Costello, C., Kroodsma, D., Palomares, M. L. D., Pauly, D., Sumaila, U. R., Zeller, D. (2018). Science Advance, 4,6. DOI: 10.1126/sciadv.aat2504

Sanchez, J. E. B. (2023). The Present and Future of the 2022 WTO Agreement on Fisheries Subsidies. Journal of International Law and Politics, 55. https://www.nyujilp.org/wp-content/uploads/2023/03/Comment1.pdf

Santosa, A. (2019). Indonesia’s Multi-Door Approach in Combating Fisheries Crime: Fisheries Crime in Indonesia and Transnational Organized Crime Elements. Presidential Task Force to Combat Illegal Fishing (task Force 115). https://aseanregionalforum.asean.org/wp-content/uploads/2019/10/ANNEX-8-Presentation-by-Indonesia.pdf.

Schuhbauer, A., Skerritt, D. J., Ebrahim, N., Le Manach, F., & Sumaila, U. R. (2020). The Global Fisheries Subsidies Divide Between Small- and Large-Scale Fisheries. Marine Science, 7. https://doi.org/10.3389/fmars.2020.539214.

Singh, G. (2017). Subsidies in the Context of the WTO’s Free Trade System, a Legal and Economic Analysis. Springer Cham. https://doi.org/10.1007/978-3-319-62422-8.

Skerrit, D. J. & Sumaila, U. R. (2021). Assessing the Spatial Burden of Harmful Fisheries Subsidies. Fisheries Economics Research Unit Final Report. Fisheries Economics Research Unit. https://oceana.org/wp-content/uploads/sites/18/OceanaDWF_FinalReport.pdf.

Suharsono, A., Irschlinger, T. (2022). Fuel Subsidies to Marine Fisheries in Indonesia. The IISD and Global Subsidies Initiative. https://www.iisd.org/publications/brief/fuel-subsidies-marine-fisheries-indonesia.

Sumaila, U. R., Lam, V., Le Manach, F., Swartz, W., & Pauly, D. (2016). Global Fisheries Subsidies: An Updated Estimate. Marine Policy, 69, 189–193. https://doi.org/10.1016/j.marpol.2019.103695

Sumaila, U.R. (2017). Trade and Sustainable Fisheries. Asian Development Bank Institute Working Paper 676. Tokyo, Asian Development Bank Institute. https://www.adb.org/sites/default/files/publication/230601/adbi-wp676.pdf

Sumaila, U. R., Ebrahim, N., Schuhbauer, A., Skerritt, D., Li, Y., Kim, H. S., Mallory, T. G., Lam, V. W. L., & Pauly, D. (2019). Updated Estimates and Analysis of Global Fisheries Subsidies. Marine Policy, 109. https://doi.org/10.1016/j.marpol.2019.103695.

Sumaila, U. R., Zeller, D., Hood, L., Palomares, M. L. D., Li, Y., Pauly, D. (2020). Illicit Trade in Marine Fish Catch and Its Effect on Ecosystems and People Worldwide. Science Advance, 6,9. https://doi.org/10.1126/sciadv.aaz3801

Switzer, S., Morgera, E., Webster, E. (2022). Casting the Net Wider? The Transformative Potential of Integrating Human Rights Into the Implementation of the WTO Agreement on Fisheries Subsidies. Review of European, Comparative & International Environmental Law, 31,3. https://doi.org/10.1111/reel.12477.

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