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TWN
Info Service on WTO and Trade Issues (Jul25/17) Geneva, 15 Jul (D. Ravi Kanth) — India and the United States, among several other countries, on 14 July, seemingly put paid to any outcome on the “second wave” or “Fish 2” negotiations at the World Trade Organization to finalize the draft disciplines for addressing the issue of subsidies contributing to overcapacity and overfishing (OC&OF) at the WTO’s upcoming 14th ministerial conference (MC14), forcing the chair to announce his decision to step down before the summer break, said people familiar with the development. At a meeting of the Doha Rules negotiating body on 14 July, which is overseeing the negotiations to finalize the disciplines on addressing the tens of billions of dollars of subsidies contributing to overcapacity and overfishing, the chair, Ambassador Einar Gunnarsson of Iceland, said that he will “remain Chair until this summer” in the face of growing opposition from two unnamed members and several others to the draft text (TN/RL/W/285) on additional provisions on fisheries subsidies, said participants familiar with the development. Though the chair did not name the two countries that called for substantial changes in his draft text, it was clear from the proceedings on 14 July when India and the US, from varying positions, disapproved of the additional provisions on fisheries subsidies contained in the draft text, said people present at the meeting. In a briefing note issued by the WTO, Ambassador Gunnarsson made four observations: 1. “For most Members, document TN/RL/W/285 continues to be the basis upon which they believe the negotiations on the Additional Provisions could be concluded; 2. However, the position of the Member [India] that presented its papers during the small group meetings remains unchanged; 3. In addition, another Member [the US] announced that its position with respect to document TN/RL/W/285 had evolved, noting that it would need to see significant revisions to that text to find it acceptable; and 4. Several other Members expressed varying degrees of support for one or more elements of the positions advanced by these two Members. There is, however, no uniformity amongst these other Members on what would be most important for them, and many of them continue to indicate that document 285 still offers the most viable path towards a successful conclusion.” Since the WTO’s 13th ministerial conference (MC13) in Abu Dhabi in March 2024, India has consistently opposed the text on grounds that it is heavily tilted in favour of the big subsidizers while forcing onerous commitments on developing countries, who are not responsible for the problem of overcapacity and overfishing that has allegedly depleted global fish stocks, said people familiar with the development. India presented three papers last year pushing back against the chair’s draft text to address what it viewed as gross asymmetries and alleged carve-outs being provided to big subsidizers like the European Union, China, Japan, Korea, Chinese Taipei, and the US among others, said people familiar with the development. Interestingly, the US, under the previous Biden administration, had expressed its readiness to join the “Fish 2” agreement at MC13, but the current Trump administration has reportedly said that the proposed OC&OF disciplines are of low ambition and would need substantial changes, said people familiar with the development. CHAIR’S BRIEFING NOTE In the briefing note issued on 14 July, the chair said, “in my consultations, I noted that in 2024, I had reasons to believe Members were in striking distance of concluding the negotiations on Additional Provisions on Fisheries Subsidies on three separate occasions: at MC13 in Abu Dhabi; and at the July and December General Council meetings.” “However,” the chair added, “since then, I have not seen any indication or picked up any signals of a possible pathway that could lead the NGR [Negotiating Group on Rules] towards that objective.” Ambassador Gunnarsson said that “the open and insightful engagements in the small group meetings in May revealed that the gaps that had prevented Members from concluding in 2024 remain, and, in some respects, have possibly widened.” “So, in summary,” the chair said, “while the possibility of concluding our negotiations based on document 285, with limited adjustments, continues to enjoy broad support across the Membership, the call for wide-ranging substantive changes to that document – not necessarily all in the same direction – continues to exist and appears to have even strengthened.” “In the light of these developments,” the chair maintained that “I do not detect any grounds to conclude our work on the Additional Provisions by the July General Council.” According to Ambassador Gunnarsson, members are left in principle with two options: A. “First, Members may decide to do nothing, at least for now, and focus on the entry into force and implementation of the Agreement on Fisheries Subsidies (AFS) [dealing with illegal, unreported and unregulated (IUU) fishing and overfished stocks]. Some Members have noted that the effective implementation of the AFS could build trust and confidence, and in this way serve as a catalyst for later resumption of the negotiations on the Additional Provisions; B. The only other realistic alternative from my point of view is to continue to negotiate on the basis of the hybrid approach in W5 and W20, consistent with the NGR’s existing mandate given by Ministers at MC12. That will require Members to come together as soon as possible and appoint a new NGR Chair and give him or her full support going forward.” However, the chair said “it may not be a realistic goal for a new NGR chair to further develop the negotiations in time for a conclusion at MC14.” Therefore, the chair said he wants members to focus instead “on the imminent entry into force and successful implementation of the Agreement on Fisheries Subsidies, along with the operationalization of the WTO Fish Fund.” “Such action would perhaps build confidence and data that could help in the negotiation of the additional provisions,” the chair concluded. Though the chair was expected to continue until the end of December, his rather abrupt decision to leave before the summer break has only deepened the gloom surrounding the preparations for MC14, scheduled to take place in Yaounde, Cameroon, on 26-29 March 2026. In his briefing note, the chair expressed his gratitude “to Members all for entrusting me with this role, and for allowing me to lead this Group since 2023,” insisting that “these have been among the most rewarding two and a half years of my career. I remain Chair until this summer. CARVE-OUTS It is an open secret that the draft text (TN/RL/W/285) has been seemingly constructed primarily to take the interests and concerns of the big subsidizers on board, with specific carve-outs and manageable notification requirements “to cover up” their subsidies, contrary to the mandate on prohibiting subsidies contributing to overcapacity and overfishing, said a trade envoy, who asked not to be quoted. Moreover, the chair seems to have structured the draft text in favour of the big subsidizers to continue with their tens of billions of dollars of subsidies to distant-water fishing, the trade envoy added. The chair ought to have mustered the courage to fully explain his allegedly “asymmetrical” treatment favouring the big subsidizers with carve-outs and manageable notification requirements, while only proposing modest improvements in the special and differential treatment (S&DT) provisions, said another member, who asked not to be identified. +
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