The Technical Consultation on the Use of Subsidies in the Fisheries Sector was held at FAO headquarters, Rome, Italy, from 30 June to 2 July 2004. The consultation worked under the terms agreed by the twenty-fifth session of the FAO Committee on Fisheries (COFI), which established that attention should be given to a practical mandate to consider the effect of subsidies on fisheries resources, such as effects on illegal, unreported and unregulated (IUU) fishing and overcapacity, taking into account the impact of subsidies on sustainable development, trade in fish and fishery products, food security, social security and poverty alleviation, especially in the context of recognizing the special needs of developing countries and Small Island Developing States as recognized in international instruments. The consultation agreed that FAO should prioritize 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, on the high seas and in exclusive economic zones (EEZs), and in 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. The long-term work was identified as evaluating the impact of fisheries subsidies on the various fisheries management regimes. In this regard, the consultation agreed that, as a continuing part of its mandate, FAO should work on developing related indicators and operational guidelines, and capacity building activities in developing countries. A detailed outline of the short-term and long-term work programmes should be presented to the twenty-sixth session of COFI for discussion and decision.
