Mr. Luis Mayaute Vargas Geneva, March 22, 2017

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Experiences in phasing out fish subsidies in light of SDG 14.6: How to reduce the gap in international negotiations? Mr. Luis Mayaute Vargas Geneva, March 22, 2017

PERU S MAP

MARINE CAPTURE PRODUCTION: MAJOR PRODUCERS

Agenda WTO NEGOTIATING CONTEXT MC11, Buenos Aires (14-17 december, 2017). Less than 8 months available. Possible WTO deliverables today: Agriculture Services Development E-commerce Fisheries Subsidies

Agenda Recent developments SDG 14.6 "By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated fishing (IUU) and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the World Trade Organization fisheries subsidies negotiation. THE STATE OF WORLD FISHERIES AND AQUACULTURE 2016 Based on FAO s analysis of assessed commercial fish stocks, the share of fish stocks within biologically sustainable levels decreased from 90 % in 1974 to 68.6 % in 2013. Thus, 31.4 % of fish stocks were estimated as fished at a biologically unsustainable level and therefore overfished. Of the total number of stocks assessed in 2013, fully fished stocks accounted for 58.1 percent and underfished stocks 10.5 percent.

FISHERIES SUBSIDIES DISCIPLINES AT THE WTO IUU FISHING EU (TN/RL/GEN/181) ACP (TN/RL/GEN/182) 6 LATIN AMERICAN COUNTRIES (TN/RL/GEN/183) LDC (TN/RL/GEN/184) 2. A Party shall not grant or4.1 Prohibit subsidies provided Eliminate subsidies that3.1.b) Prohibit maintain any subsidyto vessels or operators contribute to illegal, Subsidies provided benefitting an operator if itsengaged in illegal, unreported unreported andto vessels or fishing vessel or, in case itand unregulated (IUU) fishing. unregulated fishing (Nooperators engaged operates more than one fishing flexibilities for IUU). in illegal, unreported vessel, any of its fishing and unregulated vessels is included in the IUU fishing vessel list of that Party (IUU) fishing. or of a Regional Fisheries The prohibition Management Organization should also apply to (RFMO). illegal transshipment at sea.

FISHERIES SUBSIDIES DISCIPLINES AT THE WTO OVERCAPACITY 1. The Parties shall not grant or4.1. Overall, negotiations should 3.1 Prohibit: maintain any of the followingaim to discipline fisheries subsidies: subsidies which contribute to (c) Subsidies to overcapacity and overfishing, capital and operating (a) subsidies that increase theand eliminate subsidies to illegal, costs which contribute marine fishing capacity of aunreported and unregulated to overcapacity and fishing vessel or support the(iuu) fishing. As a priority, overfishing. acquisition of equipment thatdisciplines should target increases the ability of a fishingsubsidies provided to large scale vessel to find fish; commercial or industrial fishing and subsidies to fishing activities (b) subsidies that support theoutside of the Member's construction of fishing vessels ormaritime jurisdiction, (i.e. in the(ii) Prohibit certain forms the importation of fishinghigh seas or in the EEZ of of fisheries subsidies vessels; andanother Member e.g. throughwhich contribute to access agreement). overcapacity. (c) subsidies for the transfer of5.2. In addition to these two fishing vessels to other countriesprohibitions and in accordance including through the creation ofwith the mandates, negotiations joint ventures with partners ofwill need to consider further those countries. disciplines on subsidies which increase fishing capacity and efforts that contribute to overfishing and overcapacity, often at the expense of local and mostly artisanal fishers in ACP countries who rely on fisheries for their livelihood and development prospects.

FISHERIES SUBSIDIES DISCIPLINES AT THE WTO OVERFISHING EU (TN/RL/GEN/181) ACP (TN/RL/GEN/182) 6 LATIN AMERICAN COUNTRIES (TN/RL/GEN/183) LDC (TN/RL/GEN/184) Overfishing would be4.1... As a priority, disciplines 3.1 Prohibit: covered through disciplinesshould target subsidies provided in overcapacity. to large scale commercial or (a) Subsidies to industrial fishing and subsidies fishing vessels or to fishing activities outside of fishing activity the Member's maritime negatively jurisdiction, (i.e. in the high impacting fish seas or in the EEZ of another stocks that are Member e.g. through access overfished; agreement). (i) Prohibit certain (c) Subsidies to forms of fisheries 5.1. Within the scope described capital and subsidies which above, disciplines should aim at operating costs contribute to prohibiting, at a minimum, the which contribute to overfishing. following types of subsidies with overcapacity and due regard given to specificities overfishing. of jurisdictions with multispecies catch: - Prohibit subsidies to fishing vessels or fishing activity negatively affecting fish stocks that are in an overfished condition.

Conclusions (1) Goal 14.6 of the ODS reflects a political agreement at the highest level, as it has been adopted by our Heads of State and Government. The elimination of subsidies to fisheries should therefore be negotiated in the WTO without being linked to any other negotiating process. In order to meet target SDG 14.6, Members should redouble efforts with a view of undertaking domestic, regional and international reforms, and in particular, accelerate negotiations at the World Trade Organization on fisheries subsidies to establish effective prohibitions at the 11th Ministerial Conference. We have to deliver by MC11. Given the deadline set in goal 14.6 of the ODS (2020), MC11 is not the end of the road. However, what will be achieved in MC11 should be the basis for pushing the post-buenos Aires negotiations and continuing to build a much broader multilateral outcome. :

Conclusions (2) Any multilateral outcome is built on the basis of identifying convergence, and it is notorious that one of the areas where there is a greater coincidence between proponents but also among non-proponents is in the Elimination of Illegal Fisheries Subsidies, Unreported and Unregulated (IUU fishing), which is why Peru believes that any outcome in MC11 should include this commitment. It is also clear that, in order to move forward, we must take into consideration: An appropriate Special and Differential Treatment (SDT) that takes into account the different level of development of Members. That is why we must build effective disciplines, but that mean effective SDT in areas such as artisanal and small-scale fisheries, which are the livelihood of millions of people who would otherwise be affected by their modus vivendi. The fact that not all Members are at the same point of departure is why it is necessary to grant the necessary space so that those members who are not in a situation of overcapacity, can create capacity, in a responsible manner.