My Experience at the Latin American Sustainable Seafood Summit [Part 1] ~The Twin Movement I Encountered in Merida, Mexico~
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At the 2022th WTO Ministerial Conference held in June 6, the WTO Fisheries Subsidies Agreement, which had been under discussion for the past 12 years, was agreed upon.
The background to the debate on fisheries subsidies is the idea of "harmful fisheries subsidies." The idea is that subsidies that cause a decline in marine resources through overfishing are harmful to sustainable fisheries and should be banned.
Based on this thinking, the United Nations Sustainable Development Goals (SDGs) also stipulate that "By 2020, prohibit fisheries subsidies that lead to overfishing and overcapacity, eliminate subsidies that contribute to illegal, unreported and unregulated (IUU) fishing, and prevent the introduction of new such subsidies" (14.06).
The reason why it has taken so long to debate fisheries subsidies is that it is difficult to reach an agreement on what specific subsidies lead to overfishing. Although many researchers have conducted research, it has not yet been possible to reach a general agreement because the impact of fisheries subsidies on marine resources varies depending on the type of fishery, the fishing situation, the presence and type of regulations, and the requirements for subsidies.
In this context, the main points of the agreement reached at the WTO this time are as follows:
・Prohibition of subsidies for IUU (illegal, unreported and unregulated) fishing (Article 3)
- Prohibition of subsidies for fisheries and fisheries-related activities related to overfished resources, except where measures to promote resource recovery are in place through resource management, etc. (Article 4)
- Member countries report to the WTO the types of fisheries that are subject to fishery subsidies, catches, resource status, conservation and management measures, etc., which are then reviewed by the WTO Committee (Articles 8 and 9).
The first subsidy for IUU fishing was agreed upon amid a growing recognition that IUU fishing, which ignores international rules, has the greatest negative impact on the world's fisheries resources. There have been many reports in the news about the impact of IUU fishing in neighboring countries on Japanese fisheries, and it is hoped that such illegal fishing will be curbed in the future.
Although IUU fishing often occurs in developing countries with poor governance, Japanese fishermen are not immune to it. Last year, it was discovered that Oma bluefin tuna had been distributed without reporting the catch as required by the Fisheries Law. To prevent such violations of resource management in Japan, improvements to the system are needed, such as expanding the scope of fish species covered by the newly enacted Fisheries Products Distribution Optimization Law.
The second prohibition on subsidies to fisheries related to overfished resources is intended to prevent overfished resources from being depleted through continued fishing. Whether a resource is overfished is determined by the coastal state (or by a fisheries management organization for international joint management in the case of high seas). Even if a resource is overfished, subsidies are permitted if measures are being taken to restore the resource to a biologically sustainable level.
In Japan, if resource management is not carried out appropriately in the future, it may be pointed out that the payment of subsidies to fisheries targeting fish species with poor resource status violates the WTO agreement. To prevent this from happening, it is necessary to get on track with resource management based on science, centered on TAC (total catch amount control).
The third provision, requiring notification of the types of fisheries subject to fisheries subsidies and management measures, etc., was established on the grounds that it is necessary to understand the actual form in which subsidies are currently being paid in each country when discussing and considering the optimization of fisheries subsidies.
While this agreement now prohibits subsidies for IUU fishing and fisheries related to overfished resources, no agreement has been reached on how to regulate subsidies that lead to overfishing and the special treatment being sought by developing countries, and discussions will continue.
It is also important to note that the agreement agreed upon this time is subject to the condition that it will be automatically abolished within four years after it is ratified by each country and comes into effect, unless a complete agreement or some other decision is made at the WTO General Assembly.
Regarding the impact of this WTO agreement on Japan, as long as resource management is carried out appropriately in accordance with the revised Fisheries Law, it is believed that there are no subsidies in Japan's current fisheries budget that would be prohibited by this agreement.
However, given that discussions will continue about regulating fisheries subsidies that lead to overfishing, we believe it is necessary to examine how Japan's fisheries budget and fisheries subsidies are being used, and what effect they are having on promoting fisheries and conserving marine resources.
Japan's current fisheries budget, including the initial budget and supplementary budget, is 3,201 billion yen, broken down as follows:
The largest share is the public works project for fisheries, which accounts for over 3% of the total, and measures to stabilize the management of fishermen also account for over 3%. Next, measures to strengthen the competitiveness of coastal and offshore fisheries account for a combined total of 15%, the resource assessment and management budget and the operating expenses of the Fisheries Research and Education Agency (FRA) account for 9%, and measures against foreign fishing vessels and whaling account for 8%.
Regarding public fisheries works, which account for the largest proportion of the budget, whether it is necessary to continue to spend large amounts of money on things like developing fishing ports, as in the past, is an issue that requires consideration, given that fisheries production has fallen by nearly 35% over the past 7 years and the number of fishermen has fallen by more than 20% over the past 4 years. On the other hand, public works also have an aspect of being regional economic measures, and it is necessary to take into account not only the impact on the fishing industry and fishing villages but also the government's overall policy on investment in public works, so we will leave evaluation aside for now.
For this reason, I would like to examine how the fisheries budget, excluding public fisheries works, is being used, and the first perspective that needs to be considered in doing so is, "For what policy objectives has the budget been established, and is the budget being used effectively to achieve those policy objectives?"
The objectives of fisheries policy can be understood from the wording of the Basic Fisheries Law and the Ministry of Agriculture, Forestry and Fisheries Establishment Act, but can be broadly divided into: 1) ensuring a stable supply of food to the public, 2) developing the fishing and related industries, 3) promoting regional economies and culture, and 4) properly preserving and managing fishery resources.
However, these objectives are not independent, but are interrelated. If the fishing industry develops, it will enable a stable supply of food and promote regional development, and the fishing industry can only develop with the regional infrastructure. In particular, the fishing industry cannot exist without fishery resources, and if fishermen cannot be caught, they will not be able to continue living there. In other words, the proper conservation and management of fishery resources can be said to be the foundation for achieving all other goals.
Taking these factors into consideration, the fisheries budget should be used effectively to achieve the objectives of fisheries policy, which are 1) food supply, industrial development, regional revitalization, and conservation of fisheries resources, while at the same time 2) ensuring that there is no negative impact on the conservation of the fundamental fisheries resources.
This impact on resources is the concept of harmful subsidies that has been discussed at the WTO. For example, if building too many fishing boats in order to promote the fishing industry leads to overfishing, this will have a negative impact on resources.
As already mentioned, in addition to the public works budget, the outline of Japan's fisheries budget is such that, at 32%, a large proportion of the budget is allocated to measures to stabilize fisheries management. The main components of the measures to stabilize fisheries management include the Fisheries Revenue Stabilization Measures Project, which compensates fishermen for a certain percentage of their income if it decreases, and measures to deal with rising fuel prices. The increase in expenses for these management stabilization measures is due to the recent decrease in demand for fishery products during the COVID-XNUMX pandemic, record poor catches of some fish species such as salmon, squid, and saury, and soaring fuel prices.
Let's consider how these fisheries management stabilization measures contribute to the four objectives of fisheries policy. Simply put, the measures to stabilize fisheries management are intended to provide relief to fishermen facing difficult business situations due to declining fishing income and soaring fuel prices. If fishermen are unable to continue fishing due to the effects of the COVID-4 pandemic, poor catches, and soaring fuel prices, fishing production will shrink. This will have a negative impact on food supply, at least in the short term, and a decrease in the number of fishermen living in the area will also have a negative impact on regional development. For this reason, the implementation of measures to stabilize fisheries management is thought to be intended to achieve the policy objectives of stable food supply and regional development.
On the other hand, the impact on industrial development needs to be carefully considered. A certain number of fishermen are necessary for the industry to develop healthily, but supporting all current fishermen with subsidies will not necessarily lead to the development of the fishing industry. It is not good for the public if fishermen with management skills quit fishing due to the impact of force majeure such as the COVID-19 pandemic or natural disasters, but allowing fishermen who do not have management skills to continue fishing thanks to subsidies will not strengthen the industry.
For example, in the food and beverage industry, even if an unpopular restaurant with bad taste is able to continue operating for five or ten years thanks to subsidies, there is probably little meaning to society. It is precisely because there is a system in place that weeds out unpopular restaurants that Japan's food and beverage industry has many low-priced restaurants with good taste and service, making it one of the most competitive in the world.
In the fishing industry, there may be a temporary increase in spending on management stabilization measures to deal with the short-term impacts of the COVID-19 pandemic and poor catches, but Japan's fishing industry should avoid continuing as a weak industry dependent on subsidies. Japan is blessed with abundant marine resources and has an attractive food culture that uses fish, such as sushi and washoku, and I believe that many stakeholders feel that Japan's fishing industry has the potential to continue to develop further in the future.
In terms of how the fisheries budget is used, I believe it is more important to invest in creating a strong industry, rather than allocating a large proportion to compensating fishermen for their reduced income.
For example, there is a budget for strengthening the competitiveness of coastal fisheries called the "Beach Vitality Regeneration and Growth Promotion Grant," which provides financial support to regions that have developed plans (beach plans) to increase fishing income while making use of local characteristics.
As a concrete example, in the Shimonoseki offshore bottom trawl fishery, which received the Minister of Agriculture, Forestry and Fisheries Award in 2021, the Hama Plan promotes three initiatives: 3) improving productivity through the introduction of IT, 4) branding local fish such as monkfish in collaboration with market participants and tourism operators, and 2022) resource management, including the protection of small fish. As a result, the amount of landed fish per operation has reportedly increased fourfold. (See Fisheries Economics Newspaper, September 9, 14)
In this way, supporting efforts by local stakeholders to discuss and create a strong industry can be said to be an effective way to use the budget in order to achieve the four objectives of the fisheries policy.
In particular, IT is now the key to improving profitability in any industry, and it is expected that smart fishing and other initiatives will encourage innovation in the fishing industry as well. The decade from 2021 is designated as the United Nations Decade of Ocean Science for Sustainable Development, which calls for the digitalization of the oceans to advance ocean observations that combine automation and AI. Investing in IT in the fishing industry has the potential to bring about technological innovation that only Japan can deliver.
Furthermore, as mentioned above, the survival of the fishing industry requires abundant fishery resources. Recently, the distribution of fish around Japan has been changing significantly due to the effects of global warming, and some fish species, such as salmon, squid, and saury, have experienced record low catches. In order to develop the fishing industry in the midst of these environmental changes, we believe it is important to further strengthen the research necessary to properly manage fishing resources.
Fisheries resource surveys are conducted by the Fisheries Research and Education Agency on a national level, and also by the Fisheries Research Stations in each prefecture. Strengthening the systems of these research institutes and deepening research into environmental changes and fisheries resources through effective collaboration between researchers and fishermen will be an important investment necessary for the development of Japan's fisheries industry.
Text by Makoto Kumei
UMINEKO Sustainability Institute (USI)Representative. Born in 1975 in Hokkaido.
Worked at the Ministry of Agriculture, Forestry and Fisheries from 14 to 25. After working in the private sector as a consultant on agriculture, forestry and fisheries business and environmental policy, he established the UMINEKO Sustainability Research Institute in 3. He is responsible for running forums aimed at restoring fishery resources.
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