WORLD TRADE
ORGANIZATIONWT/CTE/W/126
12 October 1999
(99-4290)
Committee on Trade and Environment Original: English
THE FAO INTERNATIONAL PLAN OF ACTION FOR THE MANAGEMENT OF FISHING
CAPACITY AND RELATED INITIATIVES FOR SUSTAINABLE FISHERIES
Communication from the Food and Agriculture Organization (FAO)1
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I. INTRODUCTION
1. The first section of this brief paper reviews recent work undertaken by FAO in support of the
management of fishing capacity.  The second section reviews a number of related initiatives to beundertaken by FAO.  It provides, inter alia ,  tentative details of a programme which FAO is presently
pursuing to address the issue of subsidies in fisheries.
II. THE INTERNATIONAL PLAN OF ACTION FOR THE MANAGEMENT OF
FISHING CAPACITY
2. The issue of managing fishing capacity has been raised quite recently in reference to growing
concern about the spreading phenomenon of excessive fishing inputs and overcapitalization in world
fisheries.  The existence of excessive fishing capacity is largely responsible for the degradation of
fishery resources, for the dissipation of food production potential and for significant economic waste.
This manifests itself especially in the form of redundant fishing inputs and the overfishing of most
valued fish stocks.
3. The origin of excess fishing capacity stems essentially from the widespread tendency of
overinvestment and overfishing under open-access conditions.  Overcapitalization in world fisheries
also came about progressively as a result of broader and related factors, such as:
• The resilient profitability of fishing activities whereby technical progress, relative
price inelasticity and various forms of financial support have largely compensated for
diminishing yields in many fisheries;
• the effect of the extension of maritime areas under national jurisdiction on private and
public investment strategies, generally accompanied by sizable subsidizationprogrammes;
• the relative mobility of harvesting capacity, which allowed for a pervasive spill-over
of excess capital among fisheries, both within areas under national jurisdiction and onthe high seas;
                                                     
1Summary presentation to the WTO Committee on Tr ade and Environment by D. Gréboval, Fishery
Planning Officer, Fishery Policy and Planning Division, FAO.WT/CTE/W/126
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• the changing nature of the industry, which is increasingly competitive and capital-
intensive, with markets that are now largely based on internationally tradedcommodities;  and above all,
• the failure of fisheries management in general, and of commonly used management
methods in particular, such as total allowable catch (TAC) and other methods whichaim essentially at regulating the catch rather than the  harvesting capacity itself.
4. The FAO Code of Conduct for Responsible Fisheries recognized that excessive fishing
capacity threatens the world’s fishery resources and their ability to provide sustainable catches and
benefits to fishers and consumers.  In Article 6.3, it is recommended that "States should prevent
overfishing and excess fishing capacity and should implement management measures to ensure that
fishing effort is commensurate with the produc tive capacity of the fishery resources and their
sustainable utilization".
5. The International Plan of Action for the Management of Fishing Capacity (IPOA)
2 was
elaborated within the framework of the Code of Co nduct for Responsible Fisheries, as an element of
fisheries conservation and sustainable management.  The International Plan of Action was adopted by
COFI in February 1999.  It was further discussed by the FAO Ministerial Meeting on Fisheries in
March 1999.
6. The immediate objective of the IPOA is for "S tates and regional fishery organizations, in the
framework of their respective competencies and consistent with international law, to achieve
worldwide preferably by 2003 but no later than 2005, an efficient, equitable and transparent
management of fishing capacity".  The IPOA further specifies that, inter alia,  States and regional
fishery organizations, when confronted with an overcapacity problem which undermines the
achievement of long-term sustainability outcomes, should endeavour to limit initially at existinglevels and progressively reduce the fishing capacity applied to affected fisheries.  On the other hand,
where long-term sustainability outcomes are being ach ieved, it nevertheless urges States and regional
fishery organizations to exercise caution.
7. The IPA specifies a number of actions to be taken urgently in reference to the main section of
the document:  assessment and monitoring of fishing capacity, the preparation and implementation ofnational plans, international consideration and immediate actions for major international fisheries
requiring urgent attention.
III. REVIEW OF MAIN RELATED FAO INITIATIVES
8. Steps are being taken by FAO to provide support to the implementation of the IPOA and to
address related issues.  Selected initiatives are reviewed below.
9. Technical Guidelines for the management of fishing capacity are being prepared and will be
published in early 2000.  Together with existing CCRF Guidelines on Fishery Management, this
document will provide guidance for the implementation of the IPOA.
10. A Technical Consultation will be organized from 29 November to 3 December 1999 in
Mexico to address issues pertaining to the measurement of fishing capacity.  Technical guidelines will
be prepared on this basis specifying basic methods and main options for measurement and monitoring
of fishing capacity.
                                                     
2The full text of the International Plan of Action for the Management of Fishing Capacity is available
on the FAO web site <http://www.fao.org/WAICENT/FAOINFO/FISHERY/IPA/capace.htm>WT/CTE/W/126
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11. FAO will collaborate closely with Australia in the collection and analysis of data on illegal,
unregulated and unreported (IUU) fishing.  This will be followed by a technical consultation which is
planned for mid-2000.  This activity may lead to the preparation of an international plan of action on
IUU.  The issue is directly relevant to the implementation of the IPOA on the management of fishing
capacity, as well as to the implementation of othe r international instruments regarding international
and high sea fisheries.
12. 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 will be initiated on the
basis of case studies.  It may lead to the organi zation of an expert meeting that would provide
guidelines on methods for downward adjustments in fishing capacity.
13. As requested in the IPOA, FAO is also initiating work on the identification of factors
contributing to overcapacity, such as:  lack of input and output control, unsustainable fishery
management, and subsidies which contribute to overcapacity.  A first step will consist of the
undertaking of a review of the comparative impact of such factors on overcapacity, based on existing
literature.  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
international technical meeting on the identification of factors contributing to overcapacity.
14. FAO is also aiming at providing increased  dir ect support to developing member States for the
promotion of sustainable fisheries in general and for the implementation of the IPOA in particular. A
programme is being developed towards this e nd which will require extra-budgetary funding.
15. Subsidies and related economic or financial incentives constitute another factor of relevance
to the implementation of the IPOA and to the achievement of sustainable fishery management in
general.  In recognition of the importance of this issue and of the interest expressed in various fora,
FAO will:
• Monitor and review the institutional and technical discussions and contributions on
fishery subsidies taking  place worl d-wide and to report on findings;
• collect and to disseminate information on fishery subsidies;
• exchange information with other organizations concerned;  and
• provide information and technical support, when required, to related activities
undertaken in support of the COFI Sub-Committee on Fish Trade and the
implementation of the IPOA on the Management of Fishing Capacity.
16. Aware of the interest of many member countries in achieving a better understanding of the
relationship which might exist between subsidies, trade and sustainability, FAO is presently assessing
the possibility of undertaking a short term programme aimed at reviewing, in an integrated analyticalmanner, the role of subsidies in relation to internati onal trade of fish and fish products and to fishery
resources sustainability.  This conceptual review of fishery subsidies will aim at clarifying concepts
and reviewing analytical difficulties and alternative approaches to the measurement and assessment ofthe impact of subsidies on trade and sustainability.
17. Following the above review, an expert consultation can be called upon to examine findings
and prepare a report on conceptual and analytical aspects relevant to monitoring and assessing
subsidies in relation to major trade and sustainability concerns.  Technical documentation prepared in
this context will be published.WT/CTE/W/126
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18. A report including the main findings, conclusions and recommendations will be submitted to
the next session of the COFI for review, discussion  and consideration of possible follow-up activities
related to measuring the impact of subsidies in fisheries.
19. In undertaking this programme, close co-operation with the WTO and its Member Countries
is considered essential.  Co-operation with other relevant IGOs will also be sought.
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