WORLD TRADE
ORGANIZATIONTN/MA/W/6/Add.3
15 July 2003
(03-3828)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Korea's view on Fisheries-Related Issues in DDA Negotiations
Addendum
The following communication, dated 9 July 2003, has been received from the Permanent
Mission of Korea.
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I. INTRODUCTION
1. Korea submitted a document titled “Contribution from Korea on Sectoral Tariff Elimination
(TN/MA/W/6/Add.2)” at the negotiating group on market access meeting in May. In that submission,
Korea expressed its concerns about the negative impact of tariff elimination on fish and fish productson the sustainable use of fisheries resources. Regarding this submission, some Members argued that
Korea’s position with respect to the “Market Acce ss for non-agricultural products (hereinafter Market
Access)” negotiation is not consistent with its position regarding the “Rules” negotiation. This paper
intends to assist WTO Members in clearly understanding Korea's position on fisheries-related issues
in the DDA negotiations.
II. ENVIRONMENTAL ASPECTS OF THE FISHERIES INDUSTRY
2. Two fisheries-related issues are being discussed in the DDA negotiations: one is regarding the
fisheries subsidies of the negotiating group on "Rules", and the other is regarding market access for
fish and fish products of the negotiating group on "Market Access." Although these two issues arebeing dealt with as a part of the trade negotiations, they are particularly important because they are
related to the environment and the sustainable use of exhaustible natural resources.
3. The fisheries industry is distinct from other industries from the standpoint that it is based on
fisheries resources, which are exhaustible natural resources. Unlike other industries, fishermen obtain
their final products from the natural environment. They do not need to seed nor cultivate (aquaculture
being an exception). However, unlike non-exhaustible natural resources such as solar energy, fisheriesresources could be depleted if over-exploited. In fact, according to the FAO, 75 percent of major
marine fish stocks or species groups are fully exploited, over-exploited, significantly depleted, or
recovering from depletion.
1
4.  Various measures including resource enhancement, stern management, catch limits, etc., maybe considered as solutions for resource depletion. However, as fisheries industries depend on various
fisheries resources with different biological characteristics, and since each Member applies different
management schemes under the UNCLOS regime, there is no single solution that can be applied to
                                                     
1 FAO, The state of world fisheries and aquaculture 2002 .TN/MA/W/6/Add.3
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every situation. For example, if we assume that the squid stock and cod stock2 are in danger of
depletion, applying the same measures to both stocks would neither be effective nor contributive to
the mitigation of resource depletion in any way. Measures for the sustainable use of each stock should
be pursued on a case-by-case basis, taking into consideration related factors including resource status
and management schemes. Thus, international organizations with expertise in fisheries, including theFAO and the OECD, are the best fora to address environmental aspects of fisheries.
5.   The problem is that the environmental aspects of fisheries are subject to the DDA
negotiations either directly or indirectly. Korea believes that it is undesirable to address the
environmental aspects of fisheries in the DDA negotiations, which is basically a forum for trade
negotiation. However, if it is inevitable that such aspects are discussed, the negotiations should aim
for the sustainable use of fisheries resources. In Korea's view, the current discussions do not seem tobe headed in this direction. The DDA negotiation is  basically a trade negotiation, but the DDA clearly
stipulates the need to secure sustainable development. This means that in the fishery sector, Members
should pursue the harmonization of “trade liberalization” with the “sustainable use of exhaustible
natural resources,” one of the world’s most urgent matters.
III. INTERNATIONAL EFFORTS FOR SUSTAINABLE USE OF FISHERIES
RESOURCES
6.   Korea’s view is supported by those in th e international community who have given special
attention to sustainable use of fisheries resources.
7.   From the 1970s, most coastal states began to declare Exclusive Economic Zones (EEZ), and
regulated foreign fishing vessels from accessing their EEZs in an effort to conserve their resources.
Even some extreme measures, such as moratoria on commercial fishing, were also adopted. Regional
fisheries organizations including the ICCAT (I nternational Commission for the Conservation of
Atlantic Tunas), CCAMLR (C ommission for the Conservation of Antarctic Marine Living
Resources), and IOTC (Indian Ocean Tuna Commission) have applied various conservation measures
including catch document schemes, vessel monitoring systems, and gear restrictions. International
efforts for the elimination of IUU (Illegal, Unreported and Unregulated) and FOC (Flag of
Convenience) fishing are gaining strength. Inpu t/Output control measures such as TAC (Total
Allowable Catch) and fishing permission are also growing in enforcement by coastal states. All of
these international efforts are motivated by the threat of resource depletion, and are being pursued for
responsible fisheries management.
8.   WTO Members should consider deeply whether trade liberalization, including tariff
elimination for fish and fish products, will be supportive or offsetting of previous international efforts
aimed at the sustainable use of fisheries resources.
IV. KOREA'S POSITION REGARDING THE NEGOTIATING GROUP ON “RULES”
9.   The fisheries subsidies issue has been discussed in the negotiating group on “Rules” in the
context of clarifying and improving disciplines under the Agreement on Subsidies and Countervailing
Measures.  Different views on several issues including heterogeneous nature, reference price, shared
stock, etc., have been expressed during the previous meetings.
                                                     
2 The squid are an annual species; they mature spawn and die within a year. The economic value of them is lost when we do
not harvest them before their natural mortality. They are usually caught by angling, a less intensive fishing method compared
to others. In contrast, cod are a perennial species (up to 14 years), which need at least 3 to 4 years to mature. They are
usually caught by trawl, one of the most intensive fishing methods. It also should be noted that the possibility of a same-year-class of cod stock to be caught by fishermen is much higher than that of a squid stock due to the difference in life span.TN/MA/W/6/Add.3
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10.   Korea's position regarding the negotiating group on “Rules” can be summarized as follows:
11.   First of all, Korea is prepared to participate in international efforts aimed at creating effective
disciplines against harmful fisheries subsidies for the purpose of enhancing the sustainable use of
fisheries resources, if it is deemed necessary.  However, our argument is that effective regulationshould come only after some preliminary questions
3 have been answered in such a way that establish
that such harmful subsidies in fact exist.  The unproven assumption of many Members is that any and
all subsidies are a cause of resource depletion.  These Members have been seeking to advance the
negotiation without providing sufficient empirical evidence that the existing subsidies they are trying
to regulate are indeed a cause of the stated problem.  Korea has serious concerns about this
fundamental issue.  The DDA negotiations can be a prime opportunity to  contribute to the sustainable
use of fisheries resources if properly developed. However, it may cause undesirable results, includingundermining the international efforts for the sustainable use of fisheries resources and destroying
vulnerable fisheries communities through inappropri ate disciplines, if it is pursued only for the
increased commercial interest of a few Members.
12. To reiterate, the Korean government does not object to the goal of making effective
disciplines against harmful subsidies. Rather, Kor ea is raising objections to regulating before a
problem is established, especially when those calling for such regulation have a commercial interest in
doing so, and thus their stated concern for the environment is a bit suspect.
V. KOREA'S POSITION REGARDING THE NEGOTIATING GROUP ON “MARKET
ACCESS”
13.   The argument for tariff elimination on fish and fish products resulted from approaching the
fisheries issue without taking into consideration the sustainable use of exhaustible natural resources.
As Korea already pointed out in its previous s ubmission (TN/MA/W/6/Add.2), tariff elimination for
fish and fish products would bring about undesirable results for both fish exporting and importingcountries in terms of resource depletion.
14.   For fish exporting countries without proper management schemes, it is clear that tariff
elimination would cause over-fishing and resource depletion due to the pressure to meet the increased
demand. For fish importing countries, it is argued, resources would be recovered as the fishermen
would likely give up their fishing activities because they would not be able to compete with cheaper
imports. But this is unrealistic when we consider the realities of the fisheries situation of manyMembers.
15.   For example, small-scale fisheries make up the majority of the Korean fisheries, with vessels
under 10 meters in length comprising 94% of the total. It is unrealistic to surmise that these fishermen
would quit fishing and change their profession when there is a large amount of imports from foreigncountries. They not only have little capital, but are also too advanced in their ages to learn and acquire
new skills to change occupations. As fishing is the only means to sustain their livelihoods, they would
have no choice but to engage in more fishing than before in an effort to compensate for the income
lost from the cheaper imports. This would cause social and political problems as well as resource
depletion from the collapsing of local fishing communities.
                                                     
3 These questions include:
- What kinds of subsidies are harmful to resources ?
- Are there any negative side effects from the regulations?
Other questions are listed in Korea’s previous submission(TN/RL/W/97)TN/MA/W/6/Add.3
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16.   There appears to be an inherent contradiction in the arguments of those who advocate the
elimination of fisheries subsidies on the grounds of conservation of fish stocks while simultaneously
supporting the inclusion of fisheries in the sectoral elimination of tariffs. Some Members regard
fisheries resources as a classic example of the tragedy of the commons. If we need to prohibit
fisheries subsidies so as to remove the incentive for owners of fishing vessels to catch additional fishto contribute to the conservation of fish stocks, then why should we be endeavouring at the same time
to facilitate fisheries trade?  Doing so would provide a powerful incentive to increase the exploitation
of fish stocks, far more than the current subsidies accusedly do. Certainly the increase in global
demand for fish that would follow the elimination of tariffs would far outstrip the questionable effects
of a few relatively minor, and indeed local, subsidies.
VI. CONCLUSION
17.   The position of the Korean government regarding the DDA fisheries negotiations is consistent
- they should be discussed bearing in mind the "sustainable use of fisheries resources." Judging from
this perspective, Korea believes that the fisheries subsidies negotiation has been driven in an
inadequate manner, and that the proposal for including fish and fish products in the sectoral tariff
elimination holds little relevance. WTO Members should keep in mind that the WTO could be either
praised or blamed from an environmental point of view, depending on how we deal with the fisheries-
related issues in the DDA negotiations.
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