G/SCM/N/343/USA/Suppl.1  
 
1 April 2021 
(21-2753) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
UNITED STATES 
Supplement  
The following notification, dated  and received on 3 0 March 2021 , is being circulated at the request 
of the delegation of the United States.  
 
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The following notification includes two additional federal government fisheries programs to be added 
to the 2019 subsidies notific ation1 of the United States.  
FISHING CAPACITY REDUCTION LOAN PROGRAM  
1. Period covered by the notification  
The period covered is fiscal year 2018 and 2019.  
2. Policy objective and/or purpose  
The program's policy objective is to reduce the number of vessels and permits endorsed for the 
operation in a specified fishery when it is necessary to prevent or end overfishing, rebuild stocks of 
fish, or achieve measurable or significant improvements in the conservation and management of the 
fishery. The progr am's intent is to decrease the number of harvesters in the fishery and facilitate 
the conservation and management of fishery resources. The fishing capacity reduction program must 
be consistent with any state and federal fishery management plans in place f or that fishery.  
3. Background and authority  
The National Oceanic and Atmospheric Administration 's National Marine Fisheries Service 
(NOAA  Fisheries) administers fishing capacity reduction loan programs under the Magnuson -Stevens 
Fishery Conservation and Mana gement Act (MSA). Under this authority, the Secretary of Commerce 
can finance the buyback of vessels and/or fishing permits by those remaining in the fishery in order 
to obtain the maximum sustained reduction in fishing capacity at the least cost and in a minimum 
period of time. While prior buyback programs have varied, in general, fishers have voluntarily 
submitted bids in reverse auctions to remove permits and sometimes vessels from the relevant 
fishery.  The accepted permits were then permanently relinqui shed.  The remaining fishers then pay 
fees on their future catches to repay the government loan used to finance cumulative amount of 
permits removed. Vessels removed from each fishery relinquished their fishery endorsement and 
contractually agreed to not fi sh anywhere in the world.  
 
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  4. Form 
Loans are provided to finance the relinquishment of fishing permits and/or permanent withdrawal of 
vessels. Those remaining in the fishery must repay the loans.  
Program requirements are published in the Federal Register and a re available at NOAA Fisheries 
website at:  https://www.fisheries.noaa.gov/national/funding -and-financial -services/fishing -
capacity -reduction -programs . 
5. To whom and how assistance is provided  
The financing provided is for those fishers that remain in the relevant fishery.  
6. Amount  
Although NOAA Fisheries has a framework rule that provides a process to develop such programs, 
each of the spec ific programs implemented in the past has been done under special Congressional 
legislation that authorized and appropriated funding. The most recent legislation authorizing a 
program was in the Consolidated Appropriations Act of 2005. No new buyback progr ams were 
implemented in 2018 -2019.  
7. Duration  
Indefinite.  
8. Trade effects  
It is difficult to identify trade effects as the program is designed to decrease the number of harvesters 
in the fishery in order to support the conservation and management of fishery re sources, and is 
dependent on the characteristics of the fishery and the availability of funding.  
FISHERY DISASTER ASSISTANCE PROGRAM  
1. Period covered by the notification  
The period covered is fiscal year 2018 and 2019.  
2. Policy objective and/or purpose  
Fisher ies are subject to a number of factors that can cause sudden and unexpected losses, leading 
to serious economic impacts for fishers and their communities. These factors include events such as 
hurricanes and typhoons, oil spills, harmful algal blooms, and o ther types of disasters, both natural 
and manmade, that cause a commercial fishery to be harmed, seriously disrupted, or fail. 
NOAA  Fisheries strives to make disaster determinations and funding available to recipients as quickly 
as possible. Statutory, reg ulatory, and administrative policy requirements guide the specific steps 
NOAA Fisheries follows for evaluating disaster determinations, allocation, and execution of disaster 
funds.  
3. Background and authority  
The National Oceanic and Atmospheric Administratio n's (NOAA) National Marine Fisheries Service 
(NOAA Fisheries) administers disaster assistance under two statutes – the Magnuson -Stevens 
Fishery Conservation and Management Act (MSA) and the Interjurisdictional Fisheries Act (IFA). 
Under either statute, a g overnor, tribal leader, or elected or duly appointed representative of an 
affected fishing community can request a fishery disaster determination from the Secretary of 
Commerce. The Secretary may also initiate a review. If the Secretary determines that a f ishery 
disaster has occurred, the fishery is eligible for disaster assistance subject to appropriation of funds 
by Congress. The process for administering fishery disaster assistance is guided by the MSA, IFA, 
and NOAA Fisheries ' Policy on Disaster Assistance under the Magnuson -Stevens Act 312(a) and 315 
and the Interjurisdictional Fisheries Act 308(B) and 308(D).  G/SCM/N/343/USA/Suppl.1  
 
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  4. Form 
Congress appropriates funds for fishery disaster assistance on a case -by-case basis. Once Congress 
appropriates funds, NOAA Fisheries executes the funding through grants to recipients (e.g., States, 
Tribes, Interstate Marine Fisheries Commissions).  
5. To whom  and how assistance is provided  
States/Territories, Tribes, and Interstate Marine Fisheries Commissions are eligible to receive funds 
from NOAA Fisheries. The recipient of fishing disaster funding appropriated by Congress develops a 
spending plan based on the high priority needs of the affected community. Only fishers or fishing 
related businesses in impacted fisheries are eligible to receive funds. In some instances, the relevant 
State/Territory, Tribe, or Interstate Marine Fisheries Commission keeps some funds to conduct 
specific projects (e.g., scientific monitoring, habitat restoration).  
6. Amount  
There is no standing fund for fishery disasters. Both the number and type of fishery disaster requests 
received by NOAA Fisheries each year are difficult to predi ct. As such, the amount Congress 
appropriates for fishery disaster assistance is highly variable. NOAA Fisheries tracks all use of funds, 
which is determined through the spending plans.  
In Fiscal Year 2017 no funds were allocated for this program. In Fisca l Year 2018 under the 
2018 Consolidated Appropriations Act ($20 million) and the 2018 Bipartisan Budget Act 
($200  million), Congress appropriated a total of $220 million for fishery disaster assistance. 
Congress also appropriated a total of $165 million in  Fiscal Year 2019 for fishery disaster assistance 
under the 2019 Consolidated Omnibus Appropriation ($15 million) and the 2019 Disaster 
Supplemental Appropriation ($150 million).  
7. Duration  
Indefinite. Fisheries disaster funding must be spent within a specif ic time limit, which is determined 
based on the appropriation from Congress.  
8. Trade effects  
It is difficult to identify trade effects as the program is designed to provide relief to communities 
affected by fishery disasters, the magnitude of which is highly  variable and dependent on the nature 
of the disaster, the characteristics of the affected community, and the availability of 
Congressional  funding.  
 
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