Sustainable Development and Sustainable Development and Subsidies in the Fisheries SectorSubsidies in the Fisheries Sector

- A Case in Japan -- A Case in Japan -

Nobuyuki Yagi

Fisheries Agency

Objectives of this presentation are:Objectives of this presentation are:

1. To Describe the Current Status of Fishery Subsidies in Japan.

2. To Examine their Implications for the Fishing Capacity and Fishery Production in Japan.

3. Discussion and Conclusion

OECD estimation of government OECD estimation of government financial transfers to marine capture financial transfers to marine capture

fisheries in 1998fisheries in 1998

1040

153

10

211

2204

35

1247

557

23

0 500 1000 1500 2000 2500

USA

Norway

NZ

Korea

Japan

Iceland

EU

Canada

Australia

USD million

Declining Fishing Capacity in JapanDeclining Fishing Capacity in Japan

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

1975 1980 1985 1990 1995 2000

0

100000

200000

300000

400000

500000

600000

Number ofFishing Vessels

Number ofFishery workers

Declining Domestic Fishery Declining Domestic Fishery Production in JapanProduction in Japan

0

2

4

6

8

10

12

1975 1980 1985 1990 1995 2000

million metric tons

Increasing Imported ProductsIncreasing Imported Products (unit: in billion yens)(unit: in billion yens)

0

500

1000

1500

2000

2500

3000

1975 1980 1985 1990 1995 2000

Domestic ProductionImports

Source: Japan’s trade statistics. Source: Japan’s trade statistics.

Tighter regulations in pelagic and offshore Tighter regulations in pelagic and offshore fisheries have contributed to the production fisheries have contributed to the production

decline. decline. (unit: in million tons)(unit: in million tons)

0

2

4

6

8

10

12

14

1975 1980 1985 1990 1995 2000

PelagicOffshoreCoastal

Fishery Management Schemes In Fishery Management Schemes In JapanJapan

Umbrella measures: Vessel registration and licensing systems

1. Coastal Fisheries: Traditional Right Based Management

2. Offshore Fisheries (EEZ): TAC and TAE

3. Pelagic Fisheries: International Regulations

Use of Subsidies Use of Subsidies (JPY 291 Billion in 2002)(JPY 291 Billion in 2002)

Fishery InfrastructureJPY 203 B

Other General ServicesJPY 78 B

Fishing ModenizationJPY 3 B

Marketing andProcessing JPY 3 B

Direct Payment (FleetReduction) JPY 3 B

Other Direct PaymentsJPY 0.4 B

Others (includingAquaculture) JPY 1 B

Use of Infrastructure Subsidy Safety of Coastal Villages

Some points of considerationSome points of consideration

1. Long coastal line in Japan: (The length of Japanese coastal lines are longer than that of mainland USA).

2. The number of coastal communities is relatively high in Japan if compared with other developed countries.

3. Japan’s report includes infrastructure subsidy while some others’ do not (Japan is in a unique situation that fishery resource management authority also handles coastal infrastructure budgets.)

Use of Infrastructure Subsidy Improvement of Coastal Life

OECD estimation of government financial transfers to OECD estimation of government financial transfers to marine capture fisheries in 1998 (with Japanese marine capture fisheries in 1998 (with Japanese

infrastructure information incorporated)infrastructure information incorporated)

0 500 1000 1500 2000 2500

USA

Norway

NZ

Korea

Japan

Iceland

EU

Canada

Australia

USD millionInfrastructure

FindingsFindings

1. No obvious relationship was observed between the amount of subsidy and fishing capacity. (Fishing capacity is controlled under fishery management schemes in the case of Japan.)

2. Fishery production would have been more directly affected by resource management and market conditions, rather than the amount of subsidies.

3. The use of the subsidies, rather than their total amount, would be a key factor for further assessments on the effects caused by subsidies.

ConclusionsConclusions

1. Policy filters (information on capacity control and resource management) are necessary to assess the impacts of subsidies.

2. Standardized rules for the coverage of subsidies (in particular infrastructure subsidies) would be critical for international comparisons.

3. Fair improvement of disciplines on fishery subsidy for the purpose of solving the problem on over-capacity and IUU fishing is important, and Japan is committed to contribute to the process of WTO so that a fair conclusion could be achieved.