WTO Tries to Ban Governmental Subsidy on Fishery

The subsidy on fishing is likely to be prohibited in the ministers` meeting of the 4th World Trade Organization (WTO) at Dona, Qatar, presaging the large-scale damages on the domestic fishers. And China and Taiwan officially joined the WTO.

According to the Korean delegation to the WTO ministers meeting yesterday, the United States is pursuing the plan to ban the gratuitous aid, loan and fishery subsidy which are designed to increase the income of the fishers or to lessen the cost related to the fishing.

As 10 countries such as some EU members, Australia, New Zealand, and Iceland aligned themselves with the U.S.`s suggestion, the declaration of this WTO meeting is likely to include the subsidy banning plan.

The abolition of fishing subsidies was included in the `WTO Rules` of the second draft of the WTO declaration, which was made by chairperson of the General Assembly Stewart Habinson on Oct. 27th.

If the U.S.`s demand is accepted, the Korean government cannot grant or should reduce the benefits such as ▲ low interest fishing loan (yearly 5 percent) via the Fisheries Cooperatives, ▲ low interest shipbuilding loan, ▲ price maintenance via government`s stocking the excessive fishes, and ▲ supply of tax-free oil on the fishing boats (560 won per liter).

An governmental official explained, ``If the fishery subsidies are banned, 300,000 fishers will not receive the governmental aid over 300 billion won yearly.``

Meanwhile, 142 WTO member countries made an unanimous decision on China`s WTO membership on 10th afternoon. And Taiwan joined yesterday its four islands to the WTO as a ``separate customs territory.``, not as a full-fledged member.

Chinese Foreign Trade Minister Shi Guang Sheng expressed his delightedness, in a speech after the decision, ``China reached the historical moment after 15 years of tortuous negotiations.``

While China takes the obligation and the responsibility as a WTO member such as the abolition of agricultural goods export subsidy, it is able to execute the considerable influence on the world economy with the correspondent right and voice.

sckim007@donga.com