He said world fisheries were in crisis and subsidies were a part of the problem.

"Key stocks are being run down, some to the point of collapse," he said in a statement. "Large parts of the industry are suffering. This is having acute social as well as commercial impacts."

At the WTO in Geneva the proposed prohibition was immediately criticised by the European Union as "brutal and over the top", a trade source said.

Japan, South Korea and Taiwan also opposed the move, the source added.

The proposal came to "extreme conclusions" and could lead to the elimination of "good subsidies" aimed at preserving some fish species, the Japanese delegate in the meeting said.

Argentina, Australia, Chile, Iceland, Norway, Pakistan, Peru, the Philippines, and Thailand voiced support for the proposals, but many Asian countries also called for special treatment for developing countries.

The United States said the proposal contained "simple and enforceable rules" and urged countries to "take advantage of this negotiation to make trade liberalization beneficial to the environment".

The controversial and complex issue has been on the WTO's agenda since its ministerial meeting in Doha in 2001.

But countries have been struggling to find a way of controlling fisheries subsidies at a global level, despite growing concern about overfishing and some regional restrictions on support for fishing fleets.

Sutton said, New Zealand, which has the fifth largest fishery industry, called for a broad prohibition on commercial subsidies.

New Zealand is arguing that a broad ban, along with a list of defined exceptions and transitional arrangements, will be more effective than a bottom-up negotiation on a list of prohibited subsidies.

"If we are serious about addressing the problem of over-exploitation and serious about letting developing country fishers operate on a level playing field we need genuinely effective WTO rules in this sector" Sutton said.

New Zealand had long been active on managing fisheries, with a management regime regarded as a model for the sector.

"But a lasting solution requires reform of the economics of the fisheries sector. An industry for which government supports often represent a quarter of revenues or costs is clearly not sustainable," he said

The European Union wants to preserve subsidies aimed at preventing overfishing, such as recently introduced decommissioning payments for boats and other support aimed at shifting fishing away from endangered species including cod.

In recent days officials on both sides of the subsidy debate pointed out that the divide on fisheries support had diminished.

WTO member states agreed at the ministerial meeting in Doha, Qatar, in 2001 to "clarify" global trade rules on fisheries subsidies, primarily to help developing countries.

TERRA.WIRE