Pros: incentive to fish less, money given not to fish
--> but subsidy money is used to expand fishing industry
As a result, the world fleet size is 250% larger than needed to fish sustainably
cost 10-15 billion a year, which is 25% of the 56 billion in total fish industry.
types of subsidies
*price support: government directly intervenes with prices by setting a price for the fish (often lower than what the fishermen want to sell for) and then pay the fishermen the difference
*direct financial assistance: reducing operating costs of fishing vessels in order to encourage fishing. It is mostly implemented by developed countries for Distant Water Fleets (DWF), thus giving their fleet an advantage over fishermen of developing countries.
*indirect financial assistance: reducing operating costs by subsidizing shipbuilding, fish processing, credits and loans, taxes
*trade restrictions: import tariffs (makes sure prices are not lower than domestic prices) and import quotas (restricts number of fish)
Indirect financial assistance
Governments also reduce operating costs by subsidizing shipbuilding companies and fish processing themselves, as well as offering subsidies on credits, loans, and taxes. Governments also tend to
countries and the subsidies they use
France
*construction subsidies directed at DWFs catching tuna in the Indian ocean with purse seine
*deflagging and recommissioning
Spain
*up to 55% construction subsidy
*subsidize joint ventures with Angola, Algeria, Argentina, Falkland Islands, Morocco, Mauritania, Senegal, Namibia, and other countries (mostly Africa and South America) mainly to catch shrimp (+ other fish)