In a significant development at the World Trade Organization (WTO), approximately 50 developing and least developed countries (LDCs), including Tunisia, Senegal, Bangladesh, and Morocco, have rallied behind India’s advocacy for equitable fisheries subsidy rules. This coalition supports India’s demand for a per capita-based subsidy framework and special and differential treatment (S&DT) to protect the livelihoods of small-scale and artisanal fishermen. India’s push comes as part of the ongoing “Fish 2” negotiations, aimed at curbing subsidies that contribute to overfishing and overcapacity, emphasizing sustainability while safeguarding the interests of vulnerable fishing communities.
The WTO has been negotiating fisheries subsidies since 2001, following the Doha mandate to clarify and improve disciplines on subsidies contributing to overfishing and overcapacity. The 2022 Agreement on Fisheries Subsidies, often referred to as “Fish 1,” marked a historic milestone by prohibiting subsidies for illegal, unreported, and unregulated (IUU) fishing and overfished stocks. However, the agreement left unresolved issues, particularly around subsidies contributing to overcapacity and overfishing, prompting the “Fish 2″ negotiations. These talks aim to establish comprehensive rules to ensure sustainable fishing while addressing the disparities between developed and developing nations.
India, a nation with a significant marine fisher population exceeding that of 112 countries, has been vocal about the need for fair rules. The country’s fisheries sector is predominantly traditional and small-scale, with subsidies amounting to approximately US$ 274 million annually, a stark contrast to the billions provided by nations like China (US$ 7.3 billion), the European Union (US$ 3.8 billion), and the United States (US$ 3.4 billion). India argues that aggregate subsidy caps disproportionately disadvantage developing nations with large populations of small-scale fishers, as they fail to account for per capita disparities.
India’s Core Proposals
India’s advocacy centers on two key demands: a per capita subsidy framework and special and differential treatment for developing nations. The per capita approach would allocate subsidy limits based on the number of fishers supported, rather than aggregate subsidy amounts. For example, India’s subsidies translate to roughly US$ 35 per fisher annually, compared to up to US$ 76,000 in some European countries. This framework ensures that countries with large populations of small-scale fishers are not unfairly penalized for providing essential support.
Additionally, India proposes a 25-year exemption from subsidy cuts for developing nations not engaged in distant-water fishing (beyond 200 nautical miles). This exemption would allow countries like India to maintain subsidies within their Exclusive Economic Zones (EEZs) to support traditional fishing communities. India also calls for stricter regulations on historical subsidisers—primarily developed nations with industrial fleets—proposing a 25-year moratorium on their subsidies to curb overfishing.
The endorsement of 50 developing and LDC nations highlights the global resonance of India’s position. These countries, many of which rely on small-scale fisheries for food security and livelihoods, align with India’s invocation of the Common But Differentiated Responsibilities (CBDR) principle. This principle argues that nations with a history of unsustainable fishing practices should face greater scrutiny and responsibility for subsidy reductions. The coalition’s support strengthens India’s stance against criticisms that it is stalling progress, framing its demands as a collective push for equity.
Socioeconomic Stakes for India
India is the third largest fish producing country in the world. India’s fisheries sector is vital to its economy, supporting the livelihoods of around 30 million people, including fishers and their families. Unlike industrial fleets, India’s fishing practices are largely sustainable, with measures like a 61-day fishing ban to promote stock recovery. Blocking subsidies for small-scale fishers could devastate coastal communities, pushing millions into poverty and threatening food security. India’s proposal to exempt subsidies within the EEZ aims to protect these vulnerable populations while allowing continued development of the sector.
Furthermore, India’s fishers face competition from subsidized foreign fleets, particularly those engaged in distant-water fishing. These fleets, backed by substantial subsidies, deplete fish stocks, reducing catches for local fishers. India’s call for transparency and stricter oversight of such subsidies seeks to level the playing field and protect its marine resources.
India’s proposals have sparked debate within the WTO. Some developed nations argue that a 25-year exemption for developing countries could undermine the agreement’s environmental goals. Trade experts, such as Christine McDaniel reported in The Hindu, emphasize the need for robust transparency mechanisms, noting that self-reporting often fails due to misaligned incentives. However, India counters that without equitable rules, the agreement risks perpetuating disparities, locking developing nations into a cycle of disadvantage.
Looking Forward
India’s leadership in the WTO fisheries negotiations positions it as a champion for developing nations, advocating for rules that prioritize fairness and sustainability. The proposed per capita framework and S&DT provisions could reshape global fisheries trade, ensuring that small-scale fishers are not marginalized by rules designed with industrial fleets in mind. The support of 50 nations amplifies India’s influence, signaling a broader demand for inclusive trade policies.
As the “Fish 2” talks progress, India’s advocacy will likely shape the final agreement, balancing environmental imperatives with the socioeconomic realities of developing nations. By safeguarding its fishers and marine resources, India is not only protecting its own interests but also setting a precedent for equitable global trade governance.
India’s push for fairer WTO fisheries subsidy rules reflects a commitment to sustainability, equity, and the protection of vulnerable communities. By advocating for per capita subsidies and exemptions for small-scale fishers, India is addressing the structural inequalities in global fisheries trade. With the backing of 50 developing nations, its proposals carry significant weight, offering a pathway to a more inclusive and sustainable future for global fisheries.
