21. The Secretariat presented this agenda item on the basis of document TC/SUB/2004/2, A Global Technical Initiative on Fisheries Subsidies, and the accompanying document TC/SUB/2004/Inf.4 but stressed that the approach suggested in this document should be adapted to the current circumstances.
22. The Secretariat, therefore proposed that discussions on the future work of FAO could concentrate on the follow four issues:
identifying the various forms of contentious subsidies and the use of case studies in this context;
developing a framework to study subsidies in developing countries;
assessing safe versus unsafe management regimes;
identifying indicators for under/moderate exploitation against overexploitation.
23. The Consultation did not endorse the Global Technical Initiative. It did, however, welcome the innovative approach as proposed in the Secretariat’s oral presentation. This was used as a basis for the development of the required guidance as follows.
24. The Consultation noted that FAO’s work should not be conditioned by the work of any other international fora. In this regard, it was noted for instance that FAO’s mandate relates to fisheries management issues whereas the WTO mandate is concerned with trade related issues. However, if FAO can contribute to work being undertaken in other fora, such as the WTO, that would be a positive outcome, taking into account, however, that the work of FAO should not be delineated in a way that might be interpreted as prejudging the work of WTO.
25. The Consultation agreed that FAO should prioritise its programme of work with some activities to be carried out in the short term and others in the long term. In the short term, FAO should broadly examine the relationship between subsidies and overcapacity and IUU fishing. The examination should also, as part of the short-term work programme, consider the situation in developed and developing countries, high seas and Exclusive Economic Zones (EEZs), and the artisanal and industrial sectors. In addition, FAO should examine the role and impact of subsidies in fisheries development, particularly in the artisanal sector and with respect to food security and livelihoods and consider the effects and role of other economic instruments. This applies particularly to the situation of developing countries and their special needs. In this context, reference to the directions given in paragraphs 45 and 47 of document TC SUB/2004/2 was made.
26. A detailed outline of this short-term work programme should be presented to the twenty-sixth session of COFI for discussion and decision.
27. Some delegations requested FAO to assess the role and scope of access agreements and to develop a benchmark model; assess the role of infrastructure in evaluating transfers as public or private benefit; assess nature, extent and trend of transfers in key categories; and study the role of subsidies in aquaculture development. Other delegations emphasized that Government to Government payments and general infrastructure are excluded from the existing WTO definition of subsidies. In spite of the interest of many delegations on subsidies in aquaculture, some delegations felt that this issue should be addressed in the long-term work programme.
28. It was recognized that the impact of subsidies on sustainable fisheries was dependent among other factors on the management regime in place and the state of the stocks. The long-term work was thus identified as evaluating the impact of fisheries subsidies on the various fisheries management regimes. The Consultation also agreed that FAO should work on indicators, consistent with existing international instruments, which could be used to identify resources that are under-exploited, moderately exploited and overexploited. It was noted that this was a continuing part of the FAO mandate.
29. The Consultation suggested that FAO work with other agencies (such as the United Nations Environment Programme (UNEP) and OECD), if practical, to reduce costs and eliminate duplication. It recognized that FAO’s long term work on developing operational guidelines and indicators could complement rules based approaches. Similarly it was noted that FAO activities concerning capacity building for developing countries in cooperation with regional groupings such as the Association of Southeast-Asian Nations (ASEAN), the Caribbean Community (CARICOM), the African Union, the Pacific Island Forum and the Indian Ocean Commission have been a long-term endeavour.
30. A detailed outline of this long-term work programme should be presented to the twenty sixth session of COFI for discussion and decision.
31. Some delegations suggested the use of multidisciplinary integrated framework bioeconomic modelling for studying subsidies, which might assist countries to assess their activities in relation to the Code of Conduct for Responsible Fisheries. However, the shortcoming of bio-economic models due to lack of data and direct application especially to small scale fisheries was also noted in the discussion.
32. The Consultation considered the budgetary constraints experienced by FAO but recommended that FAO conduct this work within the Regular Programme budget.
33. In the light of the earlier mandate already received from COFI, it was recommended that FAO should begin implementing the practical mandate agreed by the Consultation without waiting for or prejudging the endorsement of this report by COFI, with the goal to having some practical analysis available for COFI review and as described in paragraphs 25 and 29 of this report.
