Wto Advanced Trade Policy Course

WTO ADVANCED TRADE POLICY COURSE

MODULE ON MARKET ACCESS

Consolidation exercise

Instructions: in groups, consider the following case:

You, an expert of the Ministry of Trade, are invited by the Prime Minister to attend a meeting of a recently-established Task Force on Fish. The Task Force will discuss the possible adoption (or not) of measures to regulate the production and importation of fish. This consultative meeting follows protests organized by the Association of National Fish Industry (ANFI), who demands the adoption of measures to support their industry and protect it from imports.

The meeting will also be attended by other stakeholders, including representatives from the Ministry of Agriculture and Fisheries, the National Secretariat for the Conservation of Natural Resources, a spokesperson for the ANFI and a spokesperson for the Federation of Fishermen Associations. At the end of meeting, it is expected that the task force makes recommendations to be considered by the Prime Minister.

In the invitation, the following questions were proposed for discussion:

- Should any particular measure be adopted to support national production of fish? - What are the costs and opportunities of not taking any action? - Which specific measure(s) would the task force recommend adopting? - What are the advantages and disadvantages of adopting this (these) measure(s)?

The specific recommendations should be presented using the attached table. The Sunny Coast Herald 10 January 2015

A boisterous crowd assembled all morning agreements with other countries: "Because our yesterday in front of the Cabinet of the Prime nation is a major importer of fish products, the Minister for a "United We Fish" rally organized by government offers open imports in exchange of the Association of National Fish Industries (ANFI) theoretical concessions in other sectors. But other and other groups. About 2,000 fishermen and nations have low labor costs and some even industry representatives joined the rally according subsidize fishing. The consequence has been that to estimates. The rally culminated with participants our competitors have increased their market share unloading 200kg of fish in front of the in our country and we now fight for Cabinet of the Prime Minister, markets abroad and also at home". Free blocking off Independence Square, a trade agreements have been signed with series of intersections in the vicinity Canada, Chile and Korea and the and causing major traffic jams. government is currently negotiating one with Viet Nam. According to Peter Fishy, president of the ANFI, "time has come for the government to look The Secretary General of the Federation of seriously into how the fish industry is treated in Fishermen Associations, Samantha O'Fillet, told our country. We are already among the world's The Sunny Coast Herald that the nation could face largest importers of fish and imports continue to “serious and irreversible destruction of jobs”. rise. This is no longer sustainable and is now According to Ms O'fillet, the government must threatening to put all of us out of business". limit imports of fresh fish to a maximum of 200,000 tones in a single year. "That corresponds The Sunny Coast Herald has obtained a copy of a to about 20% of what we consume annually and document prepared by the ANFI and sent to the would protect domestic jobs", the Secretary Prime Minister during the rally. It calls for the General said. government to increase tariffs on imports of both frozen and fresh fish. "Our policy of open doors is Commenting on the rally, environmental groups not reasonable. Our fish products face high tariffs called upon the government to ensure that all when they are exported Where Alpha's fresh fish come from… efforts are made to but we apply no tariffs at Imports from Value (billions) Market share support the conservation all." According to figures 1 Canada $2.2 16% of fish stocks. According of the Central Bank, fish 2 China $2.1 15% to the Happy Fish imports have reached 3 Chile $1.1 8% Association, two $13billion in 2014, while 4 Indonesia $0.9 7% measures are urgent. exports reached only $5 5 Viet Nam $0.9 7% First, the current fishing billion the same year. …and where Alpha's fresh fish go to quotas must be tightened Imports have increased Exports to Value (billions) Market share to ensure the long-term 4% every year for the last 1 China $1.2 22% recovery of stocks in our decade. seas. Second, a system of 2 Canada $1.1 19% import permits must be 3 Japan $0.7 15% The Ministry of Trade, introduced. The permits 4 Korea $0.4 8% contacted by The Sunny would only be attributed Coast Herald, informed 5 Germany $0.3 6% to importers who that imports of fresh and frozen fish pay duties of demonstrate that their fish come from managed 5% and 7% respectively. The Ministry also argued stocks. "Consumers have the right to know that that tariffs should not be raised above 10% or the imported fish respect our environmental standards government would be violating international for sustainable fishing". obligations at the World Trade Organization (WTO). With upcoming general elections in sight, the government has decided to bring stakeholders The ANFI paper also criticizes the government for together and ask for recommendations to be using the sector as a bargaining chip in trade considered by the Prime Minister. Positive impacts Negative impacts Description of the measure(s) Who would favor it Who would oppose it 1.