WORLD TRADE
ORGANIZATIONWT/CTE/W/135
29 February 2000
(00-0748)
Committee on Trade and Environment Original:  English
UPDATE OF FAO ACTIVITIES RELATED TO FISHERIES
Communication from the Food and Agriculture Organization (FAO)
I. INTRODUCTION
1. In complying with the mandate given by the FAO Conference, the FAO Fisheries Department
is promoting and coordinating the implementation of the Code of Conduct for Responsible Fisheries
(CCRF).  The mandate also extends to addressing related priority issues that concern implementation.
Issues as such are considered in the implementation of the Plan of Action for the Management of
Fishing Capacity and for the better understanding of the role of fishery subsidies in trade and fisheryresources sustainability.
2. The 23
rd Session of the Committee on Fisheries made explicit references to fishery subsidies
and the role of FAO,1 when considering the report of the Sixth Session of the Sub-Committee on
Fish Trade.  The Committee underscored similar c onsiderations when adopting the International Plan
of Action for the Management of Fishing Capacity (IPOA).  The implementation of the IPOA hasbeen assigned high priority by the FAO Ministerial Meeting on Fisheries in March 1999.  The IPOA
contains specific references and recommendations related to fishery subsidies
2 in the context of the
management of fishing capacity.
                                                     
1"In the discussion of agenda item 5 on the basis of document COFI:FT/VI/98/4, the Sub-Committee
noted that the issue of subsidies are discussed in various fora, and that FAO has a role to play in compiling anddisseminating information on subsidies at a global level.  Many delegations stressed that the use of subsidiescould aggravate over-exploitation of resources and distort trade, while other delegations underlined that in some
cases subsidies may be necessary, for example, to secure employment and food security.  One delegation
stressed that there was no direct link between the question of overcapacity and distortion of trade in the fisheries
sector."  (Paragraph 17 - Report of the Sixth Session of the COFI’s Sub-Committee on Fish Trade).  "Somedelegations stated that FAO should carry out further work on collecting information on subsidies.  Otherdelegations suggested that FAO should undertake further work on this issue beyond the compilation ofinformation.  The Committee was informed that the OECD Committee on Fisheries is also undertaking work on
financial transfers to fisheries" (Paragraph 49 – Report of the 23
rd Session of the Committee on Fisheries).
2"When developing their national plans for the management of fishing capacity, States should assess
the possible impact of all factors, including subsid ies, contributing to overcapacity on the sustainable
management of their fisheries, distinguishing between factors, including subsidies, which contribute toovercapacity and unsustainability and those which produce a positive effect or are neutral".  (Paragraph 25 –
International Plan of Action for the Management of Fishing Capacity).
"States should reduce and progressively eliminate all factors, including subsidies and economic
incentives and other factors which contribute, directly or  indirectly, to the build-up of excessive fishing capacity
thereby undermining the sustainability of marine living resources, giving due regard to the needs of artisanalfisheries".  (Paragraph 26 – International Plan of Action for the Management of Fishing Capacity).
"FAO will, as and to the extent directed by its Conference, collect all relevant information and data
which might serve as a basis for further analysis aimed at identifying factors contributing to overcapacity such
as, inter alia , lack of input and output control, unsustainable fishery management methods and subsidies whichWT/CTE/W/135
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3. During the meeting of the WTO Committee on Trade and Environment (CTE),
29-30 June 1999, in which the IPOA was presented, it was recommended that FAO be invited to
report to its subsequent meeting (October 1999) on the current activities to  implement the IPOA and
"at least on the main elements of an indicative work programme aimed at addressing the impact of
subsidies and other factors which contribute to overcapacity and unsustainability in fisheries".  Thisrequest was in principle fulfilled in October 1999.  This note provides more detailed information on
both subjects.  A review of the recent work undertaken and the future activities to be undertaken by
FAO in support of the management of fishing capacity is included in this summary presentation
(Section II).  The document also introduces (Section III) the related initiatives being undertaken by
FAO to address the issue of subsidies in fisheries
II. ACTIVITIES RELATED TO THE IMPLEMENTATION OF THE IPOA
4. Steps are being taken by FAO to provide support to the implementation of the IPOA and to
address related issues.  Major initiatives are reviewed below.
5. Technical Guidelines for the management of fishing capacity are being prepared  and will be
published mid 2000.  Together with existing CCRF Guidelines on Fishery Management, this
document will assist the Member Countries in efficient implementation of the IPOA.
6. A Technical Consultation was organized from 29 November to 3 December 1999 in Mexico
and addressed issues pertaining to the measurement of fishing capacity.   Technical guidelines are
being prepared on this basis specifying methods and main options for measurement and monitoring of
fishing capacity.
7. FAO is collaborating closely with Australia in the collection and analysis of data on illegal,
unregulated and unreported (IUU) fishing.  An Expert Consultation will discuss these issues inSidney, Australia, from 15 to 19 May 2000.  This activity will lead to the preparation of a draft
international plan of action on IUU to be discussed at an FAO Technical Consultation to be held in
Rome from 2 to 6 October 2000.  The issue is relevant to the implementation of the IPOA on the
management of fishing capacity, as well as to th e implementation of other international instruments
regarding high sea fisheries.
8. The transition to responsible fisheries and the control of fishing capacity in particular may
require adjustments in fleet size, the relocation of fishers and - in the case of small scale fisheries - the
implementation of alternative livelihood programmes.  Work on this issue is being initiated which will
lead to the organization in 2001 of a FAO Expert  Consultation on the Reduction of Fishing Capacity.
9. As requested in the IPOA, FAO is also initiating work on the identification of factors
contributing to overcapacity and unsustainability, such as: lack of input and output control,
unsustainable fishery management and subsidies which contribute to overcapacity.  As a first step astudy has been initiated which aims at the systematic identification of such factors and at reviewing
their comparative theoretical impact on sustainability.  On this basis and further considering the
outcome of work undertaken on related issues (IUU,  subsidies, fishery management, etc.,) FAO will
assess at a later stage the need to organize an in ternational technical meeting on the identification and
assessment of factors contributing to overcapacity and unsustainability of fisheries.
10. FAO is also aiming at providing increased direct support to developing member States for the
promotion of sustainable fisheries in general and for the implementation of the IPOA in particular.  A
                                                                                                                                                                    
contribute to overcapacity".  (Paragraph 45 – International Plan of Action for the Management of Fishing
Capacity).WT/CTE/W/135
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programme is being developed towards this end whic h will require extra-budgetary funding.   As a
first step and with the financial assistance of Ja pan, FAO will organize in 2000-2001 a series of three
regional workshops aimed at facilitating the implementation of the IPOA in selected developing
countries.
III. ACTIVITIES RELATED TO SUBSIDIES IN FISHERIES
A. BACKGROUND INFORMATION
11. The role of fishery subsidies in relation to fish  trade and resource sustainability issues is a
familiar subject to the Fisheries Department.  Several studies discussing and or trying to evaluate such
impact have been published on the subject in the past , touching either one or the other, or both issues.
Recently the Fisheries Department has been requested to devote additional efforts to this matter.
Apart from FAO, several other international organi sations have ongoing activities regarding fishery
subsidies (OECD, WTO and APEC).  Some major fishing nations are looking into the matter at anational level.
B. FAO P
ROGRAMMED ACTIVITIES
12. In order to fulfil the mandate of FAO member countries to address the fishery subsidy issue in
relation to trade and fishery resource sustainability, a Task Force on Fishery Subsidies was established
in the FAO Department of Fisheries.  The purpose of this Task Force is to contribute to theassessment of the impact of subsidies on fishery resources, sustainability  and subsequently on
international trade in fish and fish products.   This Task Force will perform its duties in accordance
with the mandate provided to FAO by member countries, in a technical environment open to
discussion of all positions on the subject, taking full advantage of the available inter-disciplinary
technical resources inside the Fisheries Department and in close inter-relationship with other relevantorganisations and individual specialists connected with the issue outside the Organisation.
13. The Task Force will:
• Act as Departmental focal point and advisory group in all matters related to fishery
subsidies.
• Monitor and review the institutional and technical discussions and contributions on
fishery subsidies taking  place world-wide and report on findings.
• Collect and disseminate information on fishery subsidies.
• Maintain a close relationship and exchange of information with other relevant
organisations.
• Provide information and eventually technical support for the related activities in the
Sub-Committee on Fish Trade and toward the implementation of the IPOA on theManagement of Fishing Capacity.WT/CTE/W/135
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14. The workplan of the FAO Task Force will include, in principle, four steps:
Step 1:  Review of fishery subsidies
Due to concerns about their possible undesirable effects, member countries are examining the
role of subsidies and economic incentives in relation to international trade, environment andsustainable development issues, particularly their role with regard to trade of fish and fish products
and to fishery resources sustainability.  It seems that prior to assessing the economical and social
implications of fishery subsidies, there is a need to conduct a technical review of subsidy concepts and
modalities in fisheries.  This would contribute to the technical feasibility for an effective measurement
of the impact of subsidies in fisheries.  To achieve this, the following activities are envisaged:
• Perform a thorough and exhaustive review of the forms of subsidies in fisheries, to
establish a common technical baseline for discussion.
• Review on this basis the likely impact of subsidies on fishery resources sustainability.
• Review on the same basis their impact on international trade in fish and fishery
products.
Step 2:  Expert Consultation
A group of experts will be convoked to examine the studies prepared in Step 1 and all other
relevant information.  They will contribute technical inputs to the preparation of a report to be
submitted to the 24th Session of COFI.  Cooperation with other relevant IGOs, especially the WTO,
will be sought.   The Expert Consultation is scheduled to take place in Rome (FAO HQs) from
28 November to 1 December 2000.
Step 3:  Dissemination
A report with findings, conclusions and recommendations will be submitted the 24th Session
of COFI for review and discussion.
Step 4:  Follow-up activities
The 24th Session of COFI will consider the matter and advise on follow-up activities.
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