On 30 November 2007, Chairman of the WTO Negotiating Group on Rules issued Draft Consolidated Chair Texts of the AD and SCM Agreements (TN/RL/W/213), which contained Annex VIII to the SCM Agreement on Fisheries Subsidies. Annex VIII provides a wide range of prohibited fisheries subsidies that contribute to overcapacity and overfishing, including, inter alia, (1) subsidies conferred on the acquisition, construction, repair, renewal, renovation, modernization of fishing vessels, (2) subsidies conferred on operating costs of fishing including fuel, (3) subsidies in respect of port infrastructure, (4) income support to fishermen, and (5) price support for fisheries products (Art.I). On the other hand, it provides a limited number of exceptions, including (1) subsidies for improving fishing vessel and crew safety, (2) subsidies for the adoption of environmentally friendly technologies and equipments, (3) subsidies for early retirement of fishworkers as a result of government policies to reduce fishing capacity or effort (Art.II), on condition that any member maintaining such subsidies shall operate a fisheries management system within its jurisdiction based on internationally recognized best practices for fisheries management (Art.V).
The Annex thus introduces new disciplines on fisheries subsidies aiming at addressing overcapacity and overfishing, and connects them with internationally recognized fisheries management practices. This is totally different from the disciplines on subsidies under the SCM Agreement, whose aims at addressing trade-distorting subsidies. If adopted, the Annex will open a new page in the history of trade and environment under the GATT/WTO by introducing direct disciplines on overcapacity and overfishing. Also, it will require close cooperation with relevant international organizations such as FAO and regional fisheries organizations. This will provide both opportunities and challenges for the WTO. For instance, will WTO dispute settlement panels be able to decide on the adequacy of fisheries management system of a member country?
It was announced that a follow-up negotiation on the Annex VIII would be held in early September this year. I'm not sure whether it was held, but am thiking of followin up the negotiation.
