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Trade and Fisheries Subsidies

Listed author(s):
  • 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)

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.

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

Paper provided by FAERE - French Association of Environmental and Resource Economists in its series Working Papers with number 2016.08.

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Length: 51 pages
Date of creation: Feb 2016
Handle: RePEc:fae:wpaper:2016.08
Contact details of provider: Web page: http://www.faere.fr

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  2. 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.
  3. 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.
  4. 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.
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  7. Pedro Pintassilgo & Marko Lindroos, 2008. "Coalition Formation In Straddling Stock Fisheries: A Partition Function Approach," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 303-317.
  8. Naoto Jinji, 2011. "Fisheries Subsidies and Management in Open Economies," Discussion papers e-11-004, Graduate School of Economics Project Center, Kyoto University.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
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  15. 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.
  16. 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.
  17. Hilborn, Ray, 2007. "Defining success in fisheries and conflicts in objectives," Marine Policy, Elsevier, vol. 31(2), pages 153-158, March.
  18. 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.
  19. 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.
  20. 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.
  21. 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.
  22. Milazzo, M., 1998. "Subsidies in World Fisheries. A Reexamination," Papers 406, World Bank - Technical Papers.
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