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FAO. The FAO Expert Consultation on Economic Incentives and Responsible Fisheries met at FAO Headquarters for four days starting 28 November 2000. Twelve experts, invited in their individual capacity, attended the Consultation. They elected Dr Jon Sutinen as the Chair of the Consultation and adopted an agenda that included three main issues: (i) the definition of subsidies and how best to divide them into categories; (ii) the impact of subsidies on fisheries resources sustainability; and, (iii) the impact of subsidies on trade in fish and fish products. The experts discussed in plenary session the issue of what would be a suitable and operational definition of ‘subsidy’ for the purpose of analysing the effects of subsidies on resource sustainability and on trade. This discussion occupied much time and ended with an agreement that no one, single definition could be agreed upon. Instead the experts identified four sets of subsidies. Set 1 corresponds roughly to what the man in the street commonly understands by the term ‘subsidy’. Sets 2, 3 and 4 expand the concept. Set 4 includes all government actions - including inactions - that potentially can affect positively or negatively the benefits of firms active in the fishery sector, also in the long run. The experts recommended that these ‘sets of subsidies’ be referred to in future discussions and analysis of subsidies. Most of the discussion concerning the impact of subsidies took place in working groups - one addressing the impact on trade and the other the impacts on sustainability of fishery resources. The experts started by classifying subsidies into categories that would facilitate the analysis of their impact. Both groups found categories that identify subsidies according to their effects on the firm to be pragmatic. These were labelled as ‘revenue-enhancing’ and ‘cost-reducing’. However, the effects of some interventions are unclear and a third category “Miscellaneous/unspecified” was added. These categories were further refined to facilitate analysis. The experts then enquired about the state of empirical knowledge of the impacts that subsidies have on trade and fishery resources sustainability. They concluded that empirical knowledge of impact is very weak. This is true both in respect of impact on trade and in respect of impact on fishery resources. Building on their knowledge about availability of data and
analytical methods, as well as their familiarity with the current estimates of
the magnitude of subsidies, the experts then proceeded to identify priorities
for further research about the impacts of subsidies. In respect of impact on
fishery resources priority for future study was given for the following
categories: ‘capital expansion’, ‘tax waivers and
deferrals’, and ‘price support'. In respect of impact on trade the
experts assigned priorities to future study of actions that ‘reduce the
relative price of inputs’, ‘reduce fishing effort’ and to
‘management and regulatory actions’. The experts also discussed the
methods that would be best suited to carry out these studies. |
