WORLD TRADE  
ORGANIZATION   
WT/CTE/W/236 
17 June 2004 
 
 (04-2631) 
Committee on Trade and Environment Original:   English 
  
 
UNEP WORKSHOP ON FISHERIES SUBSIDIES  
AND SUSTAINABLE FISHERIES MANAGEMENT 
GENEVA, 26-27 APRIL 2004 
 
SUMMARY OF THE CHAIRS 
 
Contribution by UNEP 
 
 
I. INTRODUCTION 
1. This workshop, which was held over the course of  two full days at the Palais des Nations in 
Geneva, constituted the fifth workshop on fisheri es subsidies organized by UNEP since 1997.  The 
workshop was made possible with generous suppor t from Federal Ministry for the Environment, 
Nature Conservation and Nu clear Safety, Germany. 
2. Participants included more than 100 indivi duals from 37 national governments (including 
officials from environment, trade, and fisher ies agencies), as well as 8 intergovernmental 
organizations, 2 regional fisheries management or ganizations, 15 non-government organizations, and 
4 academic institutions.  All of the participants were invited in their personal capacities.  The 
workshop included presentations from 22 invite d experts from government, intergovernmental 
organizations, non-governmental organi zations, and academic institutions.  
3. The workshop was co-chaired by Mr. Segfre do Serrano (Assistant Secretary, Philippine 
Department of Agriculture) and Ms. Cornelia Que nnet-Thielen (Deputy Dir ector General, Federal 
Ministry for the Environment, Nature C onservation and Nuclear Safety, Germany). 
4. This summary has been prepared under the responsibility of the wo rkshop’s co-chairs. 
Although it has been reviewed by all participants, it is not intended as a consensus document.  Without attempting to itemize all of the important contributions made, it provides an overview of the 
main issues raised and suggestions made by particip ants to address fisheries subsidies and sustainable 
fisheries management.  
II. MAIN FINDINGS AND POINTS OF DISCUSSION 
A. C
ROSS -CUTTING ISSUES (SESSION 1 – 4) 
5. The meeting was held at a critical juncture in the international dialogue  over fishing subsidies 
and fisheries management, following several years in  which basic analytical work on the issue has 
substantially matured, and in which government s have made real progress towards cooperative 
international solutions at the WTO, in the FAO, and elsewhere.  Participants were mindful of the high 
priority given by heads of state at the 2002 World Summit for Sustainable Development (WSSD) to the fishing subsidies issue, and felt that it was now necessary to move from analysis to action, and to 
promote concrete steps towards practical outcome s, including the WTO negotiations on fisheries 
subsidies in accordance with the Doha Development Agenda. WT/CTE/W/236 
Page 2  
 
 6. At this stage in the international discussion on fishing subsidies it is no longer a question of 
whether , but of how international cooperation to reform fi shing subsidies should move forward.  
Diplomatic and analytic advances in the past two years have contributed to broad agreement that 
fishing subsidies often contribute to overcapacity and uns ustainable levels of fishing, in particular in 
the absence of effective management systems.  Subsidies contributing to overcapacity, to 
unsustainable fishing effort, and to illegal, unre ported and unregulated (IUU) fishing need to be 
addressed most urgently.   
7. The problem is fundamentally interdisciplinary, and requires a holistic and integrated 
solution.  The economic, social, and environmental aspects of the fishing subsidies problem are inextricably linked.  New international disciplines must reflect these linkages, and must be carried 
forward through improved cooperatio n and coordination among relevant governmental institutions at 
the national, regional, and international levels, wh ile respecting their various spheres of competence 
and authority. 
8. As recognized in the Doha Development Agenda , the problem of fishing subsidies is of 
particular importance to developing countries where th e fisheries sector is a vital source of food 
security, employment, and foreign exchange.  While poorly designed fishing subsidies can raise the 
same dangers in developing as in  developed countries, properly desi gned interventions by developing 
country governments to foster the sustainable deve lopment of fisheries and addressing their specific 
concerns may be legitimate and necessary.   
9. It is important to bear in mind that artisanal fisheries comprise 45% of global fisheries and 
90% of fishworkers worldwide.  The overexploitatio n of some developing country fisheries has been 
compounded by the subsidization of distant water fleets from major fishing powers competing with 
local artisanal fisheries.  Meanwhile, subsidies can create significant competitive disadvantages for 
poorer countries seeking to develop their fisherie s resources, whether for export or for internal 
consumption.  
10. There has been a continuous evolution of the fisheries discussions in which a broad spectrum 
of stakeholders has helped to shape the debate.  A common view exists that UNEP’s workshops and 
studies continue to inform the discussions and nego tiations on fisheries subsidies in various fora, 
including the WTO and the FAO.  Many participan ts commented that this workshop in particular 
enjoyed an outstanding level of participation, and fostered an open, informal dialogue between 
governments, international organizations, and NGOs.  
B. S
ESSION I — SUSTAINABLE MANAGEMENT OF FISHERIES : BASIC CONCEPTS AND TOOLS  
11. The world is still far from achieving sustainable fisheries.  According to the FAO, 75% of 
global marine fisheries are either overexploited, full y exploited, significantly depleted or recovering 
from overexploitation.  This crisis has serious e nvironmental, economic, and social consequences, 
especially in developing countries. 
12. The tools of fisheries management are increasingly well understood, but are yet to be fully 
and consistently applied.  A series of internati onal instruments - including the UN Code of Conduct 
for Responsible Fishing and its associated FAO Inte rnational Plans of Action, and various regional 
fisheries management agreements - provide an incr easingly coherent framework  for effective fisheries 
management.  However, better co-operation and more  coherence are yet to be achieved among global 
fisheries agreements, regional fisheries management organizations, soft law in struments, and general 
international marine environmental treaties.   
13. There remains a very significant gap between international commitments and their 
implementation.  Budgetary cons traints and insufficient human and institutional capacity present  WT/CTE/W/236 
 Page 3 
 
 
 obstacles that are compounded by the lack of political will to undertake difficult but necessary policy 
reforms.  At the national level, better integra tion among relevant government agencies is widely 
needed. 
14. The economic conditions of the fishing sector are not yet conducive to sustainability:  Open 
access continues to drive overinvestme nt and excess effort in many fisher ies.  In theory, the allocation 
of property rights is a good management tool for sustainable use of resources, but empirical evidence 
shows that the functioning of property rights depend on a coherent institutional context (e.g. improved 
cooperation between different regional regimes, tr ansparency, efficient monitoring and sanctioning 
mechanisms) which is normally not the case.  
15. Moreover, new market opportunities created by increasing trade and globalization have 
introduced incentives for overfishing, often in the presence of insufficient management, creating new 
challenges for both industrial and small-scale fisheries.   Subsidies have contributed to distortions and 
overexploitation in many cases.  In addition, va luation methods excluding consideration for inter-
generational equity and welfare have aggravated the problem and given rise to ethical concerns. 
16. Given the importance of this sector to many de veloping countries, there is a need to adapt a 
variety of management measures in consultation with fishing communities, particularly in the 
artisanal context. This refers especially to co mmunity-based or co-management approaches.  There 
remains, moreover, a need for improved understanding of  the definition of artisanal fishing, and of the 
specific environmental and social values at stake.   
17. In assessing and improving fisheries management systems, there is a need to take into 
consideration the ecosystem approach.  Maximu m sustainable yield (MSY) is a uni-dimensional 
concept that, when singularly applied in investment  decisions, fails to capture the full range of multi-
dimensional challenges confronting fish stocks a nd the ecosystems on which they depend (such as the 
impact of fishing on non-target species or on the benthos). 
18. There remains a need for broader application of the precautionary approach in fisheries 
management, particularly in light of the increasingl y characteristic « boom-bust » pattern of fisheries 
exploitation.  Flags of convenience pose a major global problem, which, if not addressed, has the 
potential to undermine work at th e national and regional levels. 
C. SESSION II — THE RESOURCE IMPACT OF SUBSIDIES UNDER VARIOUS FISHERY CONDITIONS  
19. Broad agreement now exists that fishing subsid ies often contribute to fleet overcapacity and 
overfishing.  International concern has been rep eatedly expressed with these impacts, and with the 
need to halt subsidies that contribute to illega l, unreported, and unregulated (IUU) fishing. 
20. The resource impacts of fishing subsidies can vary according to type, and the commercial, 
regulatory, and environmental context in which they  are applied.  The fundamental approach of the 
draft UNEP « matrix » paper is thus to analyse the impacts of fishing subsidies in a given fishery in 
accordance with a combination of the existing ma nagement and bio-economic conditions and the 
design of the subsidy in question.  
21. The matrix paper is considered as a useful analytical tool and a sound basis upon which to 
move the discussions forward.  Among the key find ings to emerge from the paper and the workshop 
discussion were: 
(a) Most subsidies can be harmful to fish st ocks, particularly in the absence of effective 
management.  In the real world, few if any fisheries are subject to management that is sufficiently « effective » to ensure that cer tain kinds of fishing subsidies will not WT/CTE/W/236 
Page 4  
 
 harm fisheries resources.  In addition, some analyses suggest that certain fishing 
subsidies could be harmful even under ideal management conditions. 
(b) Subsidies that contribute directly to cap acity or effort, such as subsidies to capital 
cost or to operating costs, are among the most harmful. 
(c) Subsidies to build or improve infrastruct ure are a matter of concern to a number of 
governments, and opinions appear to diffe r regarding their likely harmfulness to 
resources.  This is one instance in whic h the definition of a « fishing subsidy » 
continues to require discussion. 
(d) Similarly, there remains substantial need  for further discussion of subsidies associated 
with fisheries access agreements.  It is generally acknowledged that access 
agreements have potential to provide benefits, but that improperly designed 
agreements can contribute to overexploitation and to inequities in the distribution of 
rents from fisheries resources.   
(e) Properly designed fishing subsidies can contribute to the achievement of sustainable 
fisheries, including through government programs for the reduction of fishing 
capacity, the improvement of fishing techniqu es, or the limitation of fishing effort.  
But effective safeguards need to be in  place when designing decommissioning or 
license retirement programmes in order to a void altered incentives to enter or exit the 
industry or to invest in modernization or purchase of new vessels.  These safeguards could include mandatory physical scrapping of vessels, prohibition of introduction of new vessels and commitment to time limits of the programme. 
22. There is potential for improvement of the « matrix » paper, including: 
(a) to take into even greater account real  world conditions of sustainable fisheries 
management, where effective management is lacking;  
(b) to clarify the definition of « effective management », including by a more nuanced 
discussion of the role of property rights approaches to management, also taking into 
account the importance of proper science and enforcement; 
(c) to clarify the definition of « subsidies » used by the paper, and in particular its 
relationship to the definition used by the WTO subsidies agreement; 
(d) to give further attention to positive su bsidies, such as those for environmentally 
friendly fishing gear; and   
(e) to clarify the impacts with which the pa per is concerned, including by clarifying its 
treatment of trade impacts and by taking fuller account of the distinction between 
impacts on fish stocks and broader impacts on marine ecosystems.  
23. Further work building on the « matrix » paper could, for instance, expand the analysis to 
aquaculture and processing industries, address the dynamics of subsidies and fishery management 
systems, and elaborate on the differences of scale of  subsidies and their impact taking into account the 
differences of subsidies to small-scale and artisan al fishing and those to large-scale and industrial 
fishing.   WT/CTE/W/236 
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 D. SESSION III — EXPERIENCES WITH SUBSIDIES AND FISHERIES MANAGEMENT  
24. Advances in international cooperation on fishi ng subsidies must be reflected in improved 
national policies  and their implementation.  UNEP case studies illustrate that the interaction between 
subsidies and fisheries management policies requires better attention.  They confirm the dangers of 
poorly managed subsidies in terms of their contribut ion to resource and environmental depletion, food 
security, and unemployment.  Others suggest that certain underdeveloped fisheries can be expanded to 
make a significant contribution to development with out the application of subsidies, provided proper 
trade and management conditions exist.  The capac ity for sustainable fisheries management varies 
significantly among countries and needs to be addressed on a country-by-country basis. 
25. All case studies confirm the need for more cohe rent and transparent policymaking.  The 
unintended negative consequences of some subsidy programmes have been the result of a lack of 
coordination among management offici als and subsidies administrators, as well as the lack of data, 
transparency and advanced planning.  A critical need is to improve information flow within 
governments and to the general public about fisher ies management conditions, the application and 
impacts of subsidies, and the terms of access agreements. 
26. Given the nature of concerns over shared fisheries resources, national experiences also 
confirm the importance of improved regional coope ration to address links between the environment 
and fishing, including through Regional Fisher ies Management Organizations (RFMOs) and the 
UNEP Regional Seas Programme. 
27. Fisheries access agreements are proliferating and could - if designed properly - assist in 
moving towards sustainable fisheries management.  To date, however, access agreements have not 
returned the benefits hoped for by many developing  countries, and have often been associated with 
stock depletion and with negative developmental r esults. The level of fishing allowed under access 
agreements needs to be determined by sound scien ce and the precautionary approach, rather than by 
the amount of financial compensation paid.  The te rms of access agreements, including conditions of 
market access (both tariff and non-tariff), should be tran sparent to all interested stakeholders to ensure 
sustainable fisheries management and enforcement, as well as improved equity.   
28. The relationship of subsidies to IUU fishing is a subject of real concern, as well as of some 
sensitivity.  There is evidence that subsidies continue to benefit IUU fishing.  Although it is generally 
acknowledged that no government is deliberately a nd directly subsidizing IUU fishing, lack of 
adequate controls and the high mobility of fi shing vessels present significant challenges.   
E. SESSION IV — REFORMING FISHING SUBSIDIES AT THE INTERNATIONAL LEVEL  
29. There is very broad support for achieving a successful outcome of the current WTO 
negotiations on fishing subsidies, in accordance with the Doha mandate and with the call by heads of 
state and governments at the 2002 World Summit for Sustainable Development.  Now, the challenge 
is to clarify how the use of fishing subsidies can be disciplined in the framework of WTO-rules.  
Possible approaches for disciplines mentioned include banning all subsidies, banning subsidies with 
certain limited exceptions or differentiating betwee n, prohibited (“red”), actionable (“amber”) and 
non-actionable (“green”) subsidies.  New WTO disciplines should not, however, be viewed as the « only tool in the toolbox » or as a panacea to so lve all fisheries-related problems.  Clearly, a 
comprehensive range of complementary solutions will be necessary, both at the international and 
national levels.   
30. Appropriate priority is being given to the di scussions at the WTO, given their actuality and 
potential importance.  Rules on fisheries subsidies should be clear and possible to implement.  The 
difficulty in designing new rules comes in substantia l part from the interdisciplinary nature of the WT/CTE/W/236 
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 problem.  A variety of views continue to char acterize the discussion of how specific new rules on 
fishing subsidies might be designed.  Presentations of possible approaches prompted a substantial and 
informative discussion of potential elements of new rules, based largely on the existing WTO 
Agreement on Subsidies and Countervailing Measures.  Among the issues discussed were: 
(a) The degree to which the architecture of the rules may effect the ease with which the 
WTO can avoid entanglement in policy questions beyond its trade-related mandate; 
(b) Whether the issue of subsidies should be  treated under the general rules on subsidies 
or an additional category for fishing subsidies should be created; 
(c) Whether it would be desirable to a dopt broad or narrow approaches to new 
disciplines; 
(d) The question of « burden of proof », a nd whether it should rest on the subsidizing 
party or the challenger in various circumstances; 
(e) The degree to which rules should focus on the design of a subsidy as opposed to the 
context or impacts of a subsidy; 
(f) The nature and role of « special and differe ntial treatment » for developing countries;  
(g) The degree to which new institutional mechanisms may be needed to accompany 
improved disciplines; and 
(h) How to ensure that rules on fisheries s ubsidies contribute to a mutually supportive 
relationship between trade and environm ent, including between WTO rules and 
MEAs.  
31. New rules on fishing subsidies should emerge from cooperative dialogue and negotiations 
rather than from the decisions of dispute settlement panels.  Th ere was a general understanding that 
fishing subsidies should not be allowed to contribute to overcapacity or overfishing.  Several options 
for dealing with other subsidies were expressed. Some voiced support for certain fishing subsidies 
being actionable if they cause negative effects.  Other subsidies that can have positive impacts on 
resources could potentially be placed in a category th at would allow them only if certain safeguards 
and disciplines were in place.  
32. The special importance of the fisheries sector  for developing countries was again emphasized. 
Further work is needed to address how this could be  better taken into account in international policy, 
e.g. by exempting fisheries that are not fully exploited.  In this case, regular stock assessments would 
be needed to avoid leaps from less than to full exploitation of the fishery.   
33. It was emphasized that international policies to discipline fishing subsid ies should respect the 
competencies and authorities of the individual intergovernmental bodies involved.  Broad agreement 
exists that, to the extent possible, the WTO should avoid situations where it has to make judgments on 
the state of environmental resources or on the merits of fisheries management policies.  One approach might be to seek simple and objective criteria by which the fisheries context could be made relevant 
without breaching the boundaries of the WTO’s co mpetence.  A complementary approach would be 
improved information exchange a nd cooperation between relevant in ternational bodies (in particular 
WTO, FAO, UNEP, RFMOs and relevant MEAs) to find a common basis for criteria.  
34. Success at developing effective international fi shing subsidies policies depends in part on 
enhancing coordination and impr oving information exchange among relevant international bodies,  WT/CTE/W/236 
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 such as the WTO, FAO, UNEP, OECD, RFMOs and relevant MEAs to find a common basis for 
criteria.  Regular contacts among relevant IGO secretariats, as for instance initiated by the FAO, should be continued, expanded a nd institutionalised, and complement ed by similar interactions among 
relevant government agencies. 
35. Improved transparency and access to informa tion about fishing subsidy programs is a 
necessary element of any new international policies.  Transparency of fishing subsidy programs is 
indispensable for improved policies and disciplines, including through improved notifications, and can contribute to the proper planning and administra tion of subsidy programs at the national and local 
levels.   
F. M
OVING FORWARD  
36. There was agreement that further discussions and explorations of the themes raised in this 
workshop will be both beneficial and necessary.  The workshop revealed a growing commonality of 
purpose in the effort to ensure that subsidies do  not detract from the achievement of sustainable 
fisheries.  The months ahead are of particular im portance in this regard, as work proceeds in the WTO 
and other fora.  
37. The ability of UNEP in particular to make a positive contribution to the ongoing dialogue was 
clearly reaffirmed by the results of this work shop.  UNEP’s continued activities would be widely 
welcome, and could include, for example: 
(a) continuing to convene stakeholders and experts for interdisciplinary dialogue on 
fishing subsidies and sustainable fisheri es management for workshops and studies;  
(b) continuing empirical and analytic work, with emphasis on the practical and concrete 
challenges of reforming the design and administration of fishing subsidies;  
(c) extending UNEP’s work to help build nati onal, regional, and international capacity 
for better integration of sustainable fisher ies management, fishing subsidy, and trade 
policies;   
(d) assisting developing countries in assessing the impacts of subsidies and developing 
reform policies with particular focus on the artisanal sector;  
(e) working to encourage and support an incr eased role for RFMOs in the international 
discussion of fishing subsidies and fisheries management; 
(f) addressing questions of valuation of fish ery resources, including by taking into 
account inter-generational e quity considerations; and 
(g) continuing an active role in regular me etings of relevant IGO secretariats and 
RFMOs, pursuing areas in which joint work may be of mutual benefit. 
38. In light of widespread deficiencies in th e implementation of international fisheries 
agreements - due in part to a lack of coordina tion among stakeholders - in ternational organizations 
and governments should give priority to capacity building activities, in particular for developing 
countries.  Regional dialogues could usefully be e nhanced as part of this capacity-building effort. 
 
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