WTO subsidy check even for disputed sea

We believe that the prohibition against harmful subsidies will result in better management of the dwindling fish stocks which some fishing can exploit, even if such exploitation is no longer economically viable

The country should continue asserting its plea for the World Trade Organization (WTO) to hear cases of harmful subsidies even if fishing activities occurred on so-called “disputed waters.”

Tugon Kabuhayan, an umbrella group of industry stakeholders promoting food security, said Monday that all harmful subsidies should be prohibited in all waters — disputed or not.

“We believe that the prohibition against harmful subsidies will result in better management of the dwindling fish stocks which some fishing can exploit, even if such exploitation is no longer economically viable, simply because of these harmful and in reality, wrongful subsidies,” it said.

The group noted that the Philippines does not need to “create a dispute” to get out of the coverage of the prohibition.

Distortions created

During a recent meeting of the WTO trade negotiations committee, Departments of Agriculture and Trade and Industry called to speed up negotiations to come up with new disciplines to eliminate subsidies that contribute to illegal, unreported, and unregulated (IUU) fishing, overcapacity and overfishing.

The Food and Agriculture Organization (FAO) defines fisheries subsidies as “government actions or inactions that are specific to the fisheries industry and that modifies — by increasing or decreasing - the potential profits by the industry in the short-, medium- or long-term.”

The United Nations Sustainable Development Goal 14.6 stated that “by 2020, the world should prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to illegal, unreported and unregulated fishing, and refrain from introducing new such subsidies.”

Swarming vessels

In March, 237 Chinese vessels were found swarming Julian Felipe Reef (Whitsun Reef) with their presence continuing into May. The NTF-WPS said the vessels are about 60 meters in length and can each carry an estimated 240,000 kilos of fish.

Tugon Kabuhayan warned in May that the catch of the sighted fishing vessels had totaled at least 54,984 metric tons of fish, which already amounted to the Philippine’s loss of at least P3.5 billion worth of marine catch.

These vessels are committing IUU fishing in the country’s waters and they can do it despite being not economically viable because these Chinese fishing vessels are recipients of massive government subsidies.

A 60-meter fishing vessel would require at least 5,000 to 10,000 liters of fuel to operate daily, at least 35 officers and men to operate, and huge maintenance and depreciation cost as each vessel can easily be over 10 million dollars each.