IDEAS home Printed from https://ideas.repec.org/p/fae/wpaper/2016.08.html
   My bibliography  Save this paper

Trade and Fisheries Subsidies

Author

Listed:
  • Basak Bayramoglu

    () (Economie Publique, INRA, AgroParisTech, Université Paris-Saclay)

  • Brian Copeland

    () (Vancouver School of Economics, University of British Columbia)

  • Jean-François Jacques

    () (Université Paris-Est, ERUDITE (EA 437), UPEMLV, and LEDa-CGEMP, Université Paris-Dauphine)

Abstract

World Trade Organization members included fishery subsidies in the Doha round of trade negotiations, which subsequently stalled. This paper develops a simple model to show why prospects for a deal on fisheries subsidies may be difficult. Typically international spillover effects create incentives among exporters to negotiate reductions in subsidies: one country's subsidy worsens other exporters' terms of trade. These incentives may not exist in fisheries for 3 reasons. First, if fisheries are severely depleted, one country's subsidy reduces its long run supply of fish, raising prices and benefiting other fish exporting countries. Second, if governments use other policies to manage fish stocks, then changes in subsidies may not affect harvests and hence may not generate international spillover effects. And third, even if governments were compelled to reduce fishery subsidies, there may be little real effect because governments would be motivated to weaken other regulations targeting the fish sector.

Suggested Citation

  • Basak Bayramoglu & Brian Copeland & Jean-François Jacques, 2016. "Trade and Fisheries Subsidies," Working Papers 2016.08, FAERE - French Association of Environmental and Resource Economists.
  • Handle: RePEc:fae:wpaper:2016.08
    as

    Download full text from publisher

    File URL: http://faere.fr/pub/WorkingPapers/Bayramoglu_Copeland_Jacques_FAERE_WP2016.08.pdf
    File Function: First version, 2016
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Erwin Bulte & Richard Damania, 2005. "A note on trade liberalization and common pool resources," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 883-899, August.
    2. Copes, Parzival & Charles, Anthony, 2004. "Socioeconomics of Individual Transferable Quotas and Community-Based Fishery Management," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(02), pages 171-181, October.
    3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    4. World Bank & Food and Agriculture Organization, 2009. "The Sunken Billions : The Economic Justification for Fisheries Reform," World Bank Publications, The World Bank, number 2596, August.
    5. Clark, Colin W. & Munro, Gordon R. & Sumaila, Ussif Rashid, 2005. "Subsidies, buybacks, and sustainable fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 47-58, July.
    6. repec:wsi:igtrxx:v:10:y:2008:i:03:n:s0219198908001959 is not listed on IDEAS
    7. Kyle Bagwell & Robert W. Staiger, 2001. "Domestic Policies, National Sovereignty, and International Economic Institutions," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 519-562.
    8. Robert W. Staiger & Kyle Bagwell, 1999. "An Economic Theory of GATT," American Economic Review, American Economic Association, vol. 89(1), pages 215-248, March.
    9. Ragnar Arnason, 2012. "Property Rights in Fisheries: How Much Can Individual Transferable Quotas Accomplish?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 6(2), pages 217-236, July.
    10. Young, Margaret A., 2009. "Fragmentation or interaction: the WTO, fisheries subsidies, and international law," World Trade Review, Cambridge University Press, vol. 8(04), pages 477-515, October.
    11. Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
    12. Bagwell, Kyle & Staiger, Robert W., 2015. "Delocation and trade agreements in imperfectly competitive markets," Research in Economics, Elsevier, vol. 69(2), pages 132-156.
    13. Sumaila, Ussif Rashid & Khan, Ahmed & Teh, Louise & Watson, Reg & Tyedmers, Peter & Pauly, Daniel, 2010. "Subsidies to high seas bottom trawl fleets and the sustainability of deep-sea demersal fish stocks," Marine Policy, Elsevier, vol. 34(3), pages 495-497, May.
    14. Giovanni Maggi & Andres Rodriguez-Clare, 1998. "The Value of Trade Agreements in the Presence of Political Pressures," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 574-601, June.
    15. Yutaro Sakai, 2017. "Subsidies, Fisheries Management, and Stock Depletion," Land Economics, University of Wisconsin Press, vol. 93(1), pages 165-178.
    16. Kyle Bagwell & Robert W. Staiger, 2001. "Strategic Trade, Competitive Industries and Agricultural Trade Disputes," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 113-128, July.
    17. Bagwell, Kyle & Staiger, Robert W., 2012. "The economics of trade agreements in the linear Cournot delocation model," Journal of International Economics, Elsevier, vol. 88(1), pages 32-46.
    18. Brou Daniel & Ruta Michele, 2013. "A Commitment Theory of Subsidy Agreements," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(1), pages 239-270, May.
    19. Horatiu Rus, 2012. "Transboundary Marine Resources and Trading Neighbours," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(2), pages 159-184, October.
    20. Corbett A. Grainger & Christopher Costello, 2016. "Distributional Effects of the Transition to Property Rights for a Common-Pool Resource," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 1-26.
    21. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    22. Alan M. Rugman & Andrew Anderson, 1987. "A Fishy Business: The Abuse of American Trade Law in the Atlantic Groundfish Case of 1985-1986," Canadian Public Policy, University of Toronto Press, vol. 13(2), pages 152-164, June.
    23. Naoto Jinji, 2011. "Fisheries Subsidies and Management in Open Economies," Discussion papers e-11-004, Graduate School of Economics Project Center, Kyoto University.
    24. Carvalho, Natacha & Rege, Sameer & Fortuna, Mário & Isidro, Eduardo & Edwards-Jones, Gareth, 2011. "Estimating the impacts of eliminating fisheries subsidies on the small island economy of the Azores," Ecological Economics, Elsevier, vol. 70(10), pages 1822-1830, August.
    25. Hilborn, Ray, 2007. "Defining success in fisheries and conflicts in objectives," Marine Policy, Elsevier, vol. 31(2), pages 153-158, March.
    26. Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January.
    27. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    28. Pedro Pintassilgo & Michael Finus & Marko Lindroos & Gordon Munro, 2010. "Stability and Success of Regional Fisheries Management Organizations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 377-402, July.
    29. Ruseski, Gorazd, 1998. "International Fish Wars: The Strategic Roles for Fleet Licensing and Effort Subsidies," Journal of Environmental Economics and Management, Elsevier, vol. 36(1), pages 70-88, July.
    30. Copeland, Brian R., 1990. "Strategic enhancement and destruction of fisheries and the environment in the presence of international externalities," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 213-226, November.
    31. U. Sumaila & Ahmed Khan & Andrew Dyck & Reg Watson & Gordon Munro & Peter Tydemers & Daniel Pauly, 2010. "A bottom-up re-estimation of global fisheries subsidies," Journal of Bioeconomics, Springer, vol. 12(3), pages 201-225, October.
    32. Lone Kronbak & Marko Lindroos, 2006. "An Enforcement-Coalition Model: Fishermen and Authorities Forming Coalitions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(3), pages 169-194, November.
    33. Gordon R. Munro, 1979. "The Optimal Management of Transboundary Renewable Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 12(3), pages 355-376, August.
    34. Milazzo, M., 1998. "Subsidies in World Fisheries. A Reexamination," Papers 406, World Bank - Technical Papers.
    35. Copes, Parzival & Charles, Anthony T., 2004. "Socioeconomics of Individual Transferable Quotas and Community-Based Fishery Management," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-11, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Fishery subsidies; international trade; trade agreements;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fae:wpaper:2016.08. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mireille Chiroleu-Assouline). General contact details of provider: http://edirc.repec.org/data/faereea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.