UK FISH PROCESSING AND ENVIRONMENTAL SUBSIDIES
The UK fish processing industry is only now coming to terms with the 1991 EC Directive on urban wastewater treatment. Under the directive, most sewage discharges must receive secondary treatment by the end of 2000. Typically, fish processors in coastal areas have used little or no treatment. They face increased trade effluent charges to pay for the required treatment.
The effluent treatment charges have been estimated for individual plants, and in many cases are exceptionally high. One plant in Grimsby, which has over 120 processing facilities, will see its treatment costs rise almost 800% to £63,000 (about CDN$151,000). Because industries that received little or no treatment over the years have benefited from low treatment charges, there is little private sector interest in absorbing the new costs.
Both the UK and Scottish governments have at least hinted at the possibility of financial assistance to the industry.
As the new charges would affect the processors capacity to schedule competitive pricing, the prospect of government assistance raises a potential subsidy issue. Specifically, the avenue appears open for an export related environmental subsidy to be put in place. If this occurs, and is challenged by foreign competitors, the issue will bring attention once again to the Article XX exceptions, and the manner in which they are given effect.
ISSN 1492-7187, TRADE POLICY MONITOR, January 2000,
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