Proposed WTO subsidy waiver "threatens fish stocks"

By Jonathan Lynn

GENEVA, May 16 (Reuters) - Major developing countries have proposed exemptions to a planned trade deal on fishing subsidies but a leading environmental group said on Friday the waiver would undermine efforts to restrain overfishing.

The joint proposal this week by China, India and Indonesia aims to give special treatment to poor countries, in line with the development mandate of the World Trade Organisation's (WTO) Doha round to open up global commerce.

But it highlights the tension between development and environment needs, with the United States saying that by effectively allowing subsidies to commercial fleets it could destroy fish stocks in all members, rich and poor.

"How we decide this will have an impact on fish as a food source in the future," said Courtney Sakai, senior campaign director of advocacy group Oceana, which advises the U.S. government.

There is broad agreement in the Doha round that fishing subsidies should be limited, and that developing countries should have special treatment, especially for many small-scale fishermen who live in poverty.

BLANK CHEQUE

But critics of the new proposal say it gives a "blank cheque" to developing countries, some of whom are already big producers of fish, to subsidise commercial operations on the high seas far from home.