The World Trade Organization (WTO) came into existence in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT), which was established in the aftermath of the Second World War. The overall objective of WTO is to facilitate trade that flows smoothly, freely, and predictably. As of now, the WTO has 164 members.
Every two years, all members of the WTO participate in the WTO Ministerial Conference. This conference is recognized as the top decision-making body of the WTO. It is capable of making decisions on all matters that fall under any multilateral trade agreements.
Understanding the Agreement on Fisheries Subsidies
The Agreement on Fisheries Subsidies (AFS) was recently concluded at a WTO Ministerial meeting. This agreement prohibits subsidies for illegal, unreported, and unregulated (IUU) fishing and overfished stocks. It also prevents providing subsidies for fishing on high seas, which lie outside the jurisdiction of coastal countries and Regional Fisheries Management Organizations/ Arrangements.
According to the Special and Differential Treatment (S&DT), developing countries and least developed countries have been granted a transition period of two years from the date of entry into force of this agreement. During this period, these countries are exempted from implementing disciplines. Additionally, no prohibition has been imposed on a WTO member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU.
This agreement holds significant benefits, such as eliminating subsidies granted to fishing vessels or operators engaged in IUU fishing. This, in turn, will curb large-scale IUU fishing, which usually deprives coastal countries like India of fisheries resources, affecting the livelihoods of their fishing communities significantly.
India’s Perspective on the Agreement
Despite having a large population, India remains one of the lowest fisheries subsidisers and practices substantial discipline in sustainably harnessing fisheries resources. Unlike other advanced fishing nations, India does not exploit resources indiscriminately. Instead, India’s fisheries sector primarily depends on several millions of small-scale and traditional fishers.
India believes that WTO members who have previously provided immense subsidies, and engaged in large-scale industrial fishing, resulting in the depletion of fish stocks, should bear more obligations to prohibit subsidies. This approach aligns with the ‘polluter pay principle’ and ‘common but differentiated responsibilities’.
A Snapshot of India’s Fisheries Sector
The fisheries sector includes the capture of aquatic organisms in marine, coastal, and inland areas. Marine and inland fisheries, together with aquaculture, offer food, nutrition, and a source of income to millions worldwide, from harvesting, processing, marketing, and distribution. For many, it also forms part of their traditional cultural identity.
Currently, India is the second-largest fish-producing country in the world, accounting for 7.56% of global production and contributing about 1.24% to the country’s Gross Value Added (GVA). It aims to achieve a target of producing 22 million metric tonnes of fish by 2024-25.
In recent years, the fisheries sector has witnessed three major transformations: the growth of inland aquaculture, the mechanization of capture fisheries, and the successful commencement of brackish water shrimp aquaculture.
Government Initiatives for the Fisheries Sector
Several government initiatives have been introduced to boost the fisheries sector. These include the development of five major Fishing Harbours as hubs of economic activity, the establishment of a multipurpose seaweed park in Tamil Nadu, and the launch of the Pradhan Mantri Matsya Sampada Yojana.
This scheme aims to create direct employment for 1.5 million fishers, fish farmers, etc., and triple this number in indirect employment opportunities. It also seeks to double the incomes of fishers, fish farmers, and fish workers by 2024.
The government introduced the “Diversification of Trawl Fishing Boats from Palk Straits into Deep Sea Fishing Boats” scheme in 2017 as part of the umbrella Blue Revolution Scheme. The recently proposed Marine Fisheries Bill, 2021, stipulates that vessels must be registered under the Merchant Shipping Act, 1958, to fish in the Exclusive Economic Zone (EEZ).
These initiatives represent significant strides towards boosting India’s fisheries sector while ensuring sustainable practices are adhered to for the conservation of resources.
