WORLD TRADE
ORGANIZATIONTN/MA/W/19/Add.2
7 July 2003
(03-3673)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Comments on the Sectoral Tariff Elimination of Fishery Products
Communication from the Separate  Customs Territory of Taiwan,
Penghu, Kinmen and Matsu
Addendum
The following communication, dated 4 July 2003, has been received from the Permanent
Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
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I. PROPOSAL
1. On the subject of the Chairman's draft proposal to list fish and fish products as one of the
sectors for tariff elimination, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
believes that this would lead to the depletion of fish stocks through the over-exploitation of fishery
resources. It is our view that, to ensure the sustainable development of fishery resources, special
consideration must be given to the treatment of the exhaustible natural resource sectors.
II. FACTORS TO BE TAKEN INTO CONSIDERATION
2.  The WTO recognizes the importance of maintaining a balance between economic
development and environmental protection.  The D oha Declaration clearly identifies the need to
promote cooperation between the WTO and relevant international environmental and developmental
organizations (e.g. in the lead-up to the Johannesburg World Summit on Sustainable Developmentheld in September 2002), as well as to act for the protection of the environment
1.
3.  Among the points raised in the Johannesburg  Declaration on Sustainable Development, are
two points that relate particularly to the trading of fishery products.  Firstly, that protection of the
environment, together with social and economic development, constitutes the foundation ofsustainable development
2.  And secondly, the Declaration specifically emphasizes the fact that “fish
stocks continue to be depleted”3.
4.  FAO research findings lead to similar conclusions. A recent FAO report “The State of World
Fisheries and Aquaculture 2002” indicates that about 18 percent of stocks or species groups arereported as overexploited and 47 percent of the main groups are fully exploited.  This report also
                                                     
1 Paragraph 6 of the Doha Declaration.
2 Paragraph 8 of the Johannesburg Declaration on Sustainable Development.
3 Paragraph 13 of the Johannesburg Declaration on Sustainable Development.TN/MA/W/19/Add.2
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clearly points out that “prospects for expansion or increased production from these stocks are
negligible” and that “there is an increasing likelihood that stocks will decline further and catches will
decrease”. Against this background, the Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu believes that liberalizing the fisheries sector without taking into consideration the full extent of
its environmental impact would be counterproductive to the goal of establishing a sound globaltrading regime.
5. While there is no solid evidence of a causal relationship between trade liberalization and the
depletion or degradation of natural resources, it is generally recognized that, in many cases where
trade liberalization does not encourage production, lower costs and increase consumption, it will not
lead to a more efficient use of resources, and therefore will not produce benefits. Hence, it is difficult
to justify the argument that trade liberalization will never harm the natural resources.
6.  Aquaculture was once regarded as a promising solution to the challenge of balancing trade
liberalization and resource conservation. This has proved to be another disappointment. A recent
study by the WWF indicates that the main ingredient  in fish feed is produced from wild-caught fish.
4
Furthermore, this report  points out that the feed for carnivorous fish consists of vast amounts of fish
meal and fish oil produced from marine fish. The annual catch of fish globally is about 96 million
tons, of which more than 30 million are used to produce fish meal and fish oil. Therefore, any
expansion of the aquaculture process without careful management might well have a damaging impact
on the environment.
7.  For the sake of maintaining sustainable trade in fish and fish products, before we take any
action to further liberalize the sector, we must weigh up the expected positive benefits against the
potential negative impacts. According to the 1995~1998 GTAP database maintained by Purdue
University in the United States, the global volume of trade in fish and fish products accounts for only
about 0.2% of all global trade (Table 1) and for only 0.22% of global trade in non-agriculturalproducts (Table 2).
5 Therefore, the contribution to global trade volume resulting from full
liberalization of the fish and fish products sector would be tiny, and totally disproportionate to the
negative impact that it would give rise to.
III. CONCLUSION
8. It is widely recognized among WTO Members that trade liberalization and the protection of
natural resources must be kept in balance.  The Separate Customs Territory of Taiwan, Penghu,Kinmen and Matsu believes that focusing on lowering the most serious trade-distorting tariff items
(unbound, high tariff lines and tariff peaks), while allowing some flexibility for tariff reduction in this
sector, will be the most appropriate and practical way of achieving the dual objectives of marine fish
stock conservation and the further liberalization of the fish and fish products trade.
                                                     
4 Tuominen, Taija-Riitta and Esmark, Maren. 2003. Food for Thought: The Use of Marine Resources in Fish
Feed. WWF(World Wildlife Fund).
5  GTAP Database V.5, 2001.TN/MA/W/19/Add.2
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Table 1: Ratios of sectors in the global trade volume
Product / Year 95 96 97 98
Paddy rice 0.00% 0.00% 0.00% 0.00%
Wheat 0.40% 0.40% 0.30% 0.30%
Cereal grains nec 0.30% 0.40% 0.30% 0.20%
Vegetables, fruit, nuts 0.90% 0.90% 0.80% 0.90%
Oil seeds 0.20% 0.30% 0.30% 0.30%
Sugar cane, sugar beet 0.00% 0.00% 0.00% 0.00%
Plant-based fibers 0.20% 0.20% 0.20% 0.20%
Crops nec 0.70% 0.70% 0.80% 0.70%
Cattle, sheep, goats, horses 0.10% 0.10% 0.10% 0.10%
Animal Products nec 0.30% 0.30% 0.30% 0.20%
Raw milk 0.00% 0.00% 0.00% 0.00%
Wool, silk-worm cocoons 0.10% 0.00% 0.00% 0.00%
Forestry 0.20% 0.20% 0.20% 0.20%
Fishery 0.20% 0.20% 0.20% 0.20%
Coal 0.50% 0.50% 0.40% 0.50%
Oil 3.70% 0.00% 4.60% 0.00%
Gas 0.80% 1.00% 0.90% 0.90%
Minerals nec 1.80% 1.30% 0.70% 1.20%
Meat: cattle, sheep, goats, horse 0.40% 0.40% 0.40% 0.40%
Meat products nec 0.60% 0.60% 0.60% 0.50%
Vegetable oils and fats 0.60% 0.60% 0.60% 0.60%
Dairy products 0.60% 0.60% 0.60% 0.60%
Processed rice 0.10% 0.10% 0.10% 0.10%
Sugar 0.30% 0.20% 0.20% 0.20%
Food products nec 2.40% 2.50% 2.30% 2.30%
Beverages and tobacco products 0.90% 1.10% 1.00% 1.00%
Textiles 3.30% 3.60% 3.80% 3.40%
Wearing apparel 3.20% 3.50% 2.70% 3.70%
Leather products 1.60% 1.70% 1.50% 1.50%
Wood products 2.10% 1.90% 2.10% 2.00%
Paper products, publishing 3.10% 2.30% 2.60% 2.20%
Petroleum , coal products 1.30% 6.40% 2.10% 4.80%
Chemical, rubber, plastic products 12.30% 10.90% 11.70% 11.20%
Mineral products nec 1.50% 2.20% 2.00% 2.00%
Ferrous metals 3.50% 3.00% 3.00% 2.90%
Metals nec 2.30% 1.90% 3.00% 2.00%
Metal products 2.40% 2.20% 2.20% 2.30%
Motor vehicles and parts 8.80% 9.40% 9.00% 10.20%
Transport equipment nec 2.80% 2.10% 3.00% 2.70%
Electronic equipment 12.00% 9.10% 13.90% 9.90%
Machinery and equipment nec 20.20% 21.80% 18.80% 22.20%TN/MA/W/19/Add.2
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Product / Year 95 96 97 98
Manufactures nec 3.30% 5.20% 2.80% 5.30%
Total 100.00% 100.00% 100.00% 100.00%
        Source: GTAP Database V.5, 2001
Table 2: Ratios of sectors in the global trade volume of non-agricultural goods
Product / Year 95 96 97 98
Forestry0.22% 0.22% 0.22% 0.22%
Fishery0.22% 0.22% 0.22% 0.22%
Coal0.54% 0.55% 0.43% 0.54%
Oil4.03% 0.00% 4.99% 0.00%
Gas0.87% 1.09% 0.98% 0.98%
Minerals nec1.96% 1.42% 0.76% 1.30%
Beverages and tobacco products0.98% 1.20% 1.08% 1.08%
Textiles3.59% 3.93% 4.12% 3.68%
Wearing apparel3.49% 3.83% 2.93% 4.01%
Leather products1.74% 1.86% 1.63% 1.63%
Wood products2.29% 2.08% 2.28% 2.17%
Paper products, publishing3.38% 2.51% 2.82% 2.38%
Petroleum, coal products1.42% 6.99% 2.28% 5.20%
Chemical, rubber, plastic products13.40% 11.91% 12.69% 12.13%
Mineral products nec1.63% 2.40% 2.17% 2.17%
Ferrous metals3.81% 3.28% 3.25% 3.14%
Metals nec2.51% 2.08% 3.25% 2.17%
Metal products2.61% 2.40% 2.39% 2.49%
Motor vehicles and parts9.59% 10.27% 9.76% 11.05%
Transport equipment3.05% 2.30% 3.25% 2.93%
Electronic equipment13.07% 9.95% 15.08% 10.73%
Machinery and equipment22.00% 23.83% 20.39% 24.05%
Manufactures nec3.59% 5.68% 3.04% 5.74%
Total100.00% 100.00% 100.00% 100.00%
        Source: GTAP Database V.5, 2001.
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