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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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  1. Naoto Jinji, 2011. "Fisheries Subsidies and Management in Open Economies," Discussion papers e-11-004, Graduate School of Economics Project Center, Kyoto University.
  2. Lone Grønbæk Kronbak & Marko Lindroos, 2003. "An Enforcement-Coalition Model: Fishermen and Authorities forming Coalitions," Working Papers 50/03, University of Southern Denmark, Department of Environmental and Business Economics.
  3. 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.
  4. Maggi, G & Rodriguez-Clare, A, 1996. "The Value of Trade Agreements in the Presence of Political Pressures," Papers 180, Princeton, Woodrow Wilson School - Public and International Affairs.
  5. James Brander & M. Scott Taylor, 1997. "International Trade Between Consumer and Conservationist Countries," NBER Working Papers 6006, National Bureau of Economic Research, Inc.
  6. Michael Finus & Pedro Pintassilgo & Marko Lindroos & Gordon Munro, 2008. "Stability and Success of Regional Fisheries Management Organizations," Working Papers 2008.20, Fondazione Eni Enrico Mattei.
  7. James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
  8. 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.
  9. 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.
  10. Hilborn, Ray, 2007. "Defining success in fisheries and conflicts in objectives," Marine Policy, Elsevier, vol. 31(2), pages 153-158, March.
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  12. 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.
  13. Bulte, E.H. & Damania, R., 2005. "A note on trade liberalization and common pool resources," Other publications TiSEM ec5e2be5-3071-4001-9b6a-8, Tilburg University, School of Economics and Management.
  14. 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.
  15. 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.
  16. 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.
  17. World Bank & Food and Agriculture Organization, 2009. "The Sunken Billions : The Economic Justification for Fisheries Reform," World Bank Publications, The World Bank, number 2596.
  18. 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.
  19. 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.
  20. 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.
  21. 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.
  22. Milazzo, M., 1998. "Subsidies in World Fisheries. A Reexamination," Papers 406, World Bank - Technical Papers.
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