Agreement on Fisheries Subsidies

Why in News?

Recently, Agreement on Fisheries Subsidies (AFS) was concluded at the World Trade Organization (WTO) Ministerial meeting.

What do we know about the Agreement?

• About:
  • It will prohibit subsidies from being provided for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks.
  • The agreement also prohibits providing subsidies for fishing on high seas, which are outside the jurisdiction of coastal countries and Regional Fisheries Management Organizations/ Arrangements.
• Transition Period Allowance:
  • Under the Special and Differential Treatment (S&DT), Developing Countries and Least Developed Countries (LDCs) have been allowed a transition period of two years from the date of entry into force of this Agreement.
    • They will have no obligation to implement disciplines for the specified period.
• Exempted Areas:
  • No prohibition has been imposed on a WTO Member regarding granting or maintaining subsidy to its vessel or operator as long as it is not carrying out IUU.
  • No prohibition on providing subsidies has been imposed for fishing regarding overfished stocks as long as such subsidies are implemented to rebuild the stock to a biologically sustainable level.
• Benefits:
  • It will eliminate the subsidies granted to fishing vessels or fishing operators engaged in IUU fishing.
  • It will check large-scale IUU fishing which deprives coastal countries like India of fisheries resources, thereby significantly impacting the livelihoods of our fishing communities.

What is India’s Stand?

• India is one of the lowest fisheries subsidisers despite such a large population and one of the disciplined nations in sustainably harnessing the fisheries resources.
• India does not exploit the resources indiscriminately like other advanced fishing nations and India's fisheries sector primarily depends on several millions of small-scale and traditional fishers.
  • Therefore, those WTO Members who have provided huge subsidies in the past, and engaged in large-scale industrial fishing, which is responsible for the depletion of fish stocks, should take more obligations to prohibit subsidies based on the ‘polluter pay principle’ and ‘common but differentiated responsibilities’.

What do we know about India’s Fisheries Sector?

• About:
  • Fishing is the capture of aquatic organisms in marine, coastal and inland areas.
  • Marine and inland fisheries, together with aquaculture, provide food, nutrition and a source of income to millions of people around the world, from harvesting, processing, marketing and distribution.
  • For many it also forms part of their traditional cultural identity.
  • One of the greatest threats to the sustainability of global fishery resources is illegal, unreported and unregulated fishing.
• Indian Scenario:
  • India is the second largest fish producing country in the world accounting for 7.56% of global production and contributing about 1.24% to the country’s Gross Value Added (GVA) and over 7.28% to the agricultural GVA.
  • Fisheries and aquaculture continue to be an important source of food, nutrition, income and livelihood to millions of people
  • India aims to achieve a target of producing 22 million metric tonnes of fish by 2024-25.
  • The fisheries sector has witnessed three major transformations in the last few years:
    • The growth of inland aquaculture, specifically freshwater aquaculture.
    • The mechanization of capture fisheries.
    • The successful commencement of brackish water shrimp aquaculture.
• Related Government Initiatives:
  • Fishing Harbours:
    • The development of five major Fishing Harbours (Kochi, Chennai, Visakhapatnam, Paradip, Petuaghat) as hubs of economic activity.
  • Seaweed Park:
    • Multipurpose seaweed park in Tamil Nadu would be the center of production for quality seaweed-based products, developed on a hub and spoke model.
  • Pradhan Mantri Matsya Sampada Yojana:
    • It strives to create direct employment to 15 lakh fishers, fish farmers, etc. and about thrice this number as indirect employment opportunities.
    • It also aims to double the incomes of fishers, fish farmers and fish workers by 2024.
  • Palk Bay Scheme:
    • The Scheme, “Diversification of Trawl Fishing Boats from Palk Straits into Deep Sea Fishing Boats” was launched in 2017 as a Centrally Sponsored Scheme.
      • It was launched as part of the umbrella Blue Revolution Scheme.
  • Marine Fisheries Bill, 2021:
    • The Bill proposes to only grant licenses to vessels registered under the Merchant Shipping Act, 1958, to fish in the Exclusive Economic Zone (EEZ).
      
      

Source: PIB