Fishing Subsidies

1
Fishing Subsidies EEZ Access Arrangements

• Marcos A. Orellana
• Director, Trade Sustainable Development Program
• Center for International Environmental Law
• FINAL DRAFT 05 MAY 06

2
The EEZ Origins and Challenges

• What was the purpose underlying the creations of
  EEZs?
• What is the EEZs legal framework?
• How is the EEZs raison d être relevant for the
  Doha Negotiations?
• Developing Countries Natural Resources
• Customary Law, LOS Convention, 1995 Fish Stocks
  Agreement
• Development Food Security

3
Access Arrangements Payments

• What is the legal framework for EEZ access
  arrangements payments?
• Is there a relevant distinction between
  Arrangements, Payments Benefits?
• LOS Convention
• FAO Code on Responsible Fishing
• WTO Law GATT ASCM

4
Access Arrangements Payments

• What are the problems with access arrangements
  payments?
• Distortions to trade competition
• Undermine potential for coastal State development
• Exports capacity, Enables IUU Fishing Undermines
  sustainability

5
WTO Law Access Agreements

• Do access payments constitute subsidies under the
  ASCM?
• Hypothesis 1 Access payments are not subsidies
  under the ASCM
• Analysis
• 1. Government-to-government transfers not within
  the territory
• 2. Not a direct transfer of funds from
  government to industry
• 3. Access rights (licenses, permits) not a
  provision of goods

6
WTO Law Access Agreements (cont)

• Do access payments constitute subsidies under the
  ASCM?
• Hypothesis 2 Access payments are subsidies under
  the ASCM.
• Analysis
• 1. payments originates within the territory,
  e.g. export credits
• 2. payments are a direct transfer of funds that
  confer a benefit
• 3. access to fish constitute provision of goods
  under ASCM, in light of US-Softwood Lumber case
  (WT/DS257/AB/R).

7
Options for Improved Disciplines on Fishing
Subsidies

• Is there a role for the WTO in addressing access
  payments?
• Maintain the status quo explore dispute
  settlement
• Improving Definition Decoupling Arrangements,
  Payments Benefits
• Improving Remedies Use of Presumptions in
  Dispute Settlement
• Lessons from Export Credits the Arrangement