TN/RL/GEN/197/Rev.1  
 
6 May 2019  
(19-3102) Page: 1/5 
Negotiating Group on Rules  Original: English  
 
A CAP -BASED APPROACH  TO ADDRESSING CERTA IN FISHERIES SUBSIDI ES 
Submission of Australia and the United  States  
Revision  
The following communication, dated 3 May 2019, is being circulated at the request of the Delegation s 
of Australia and the United  States . 
 
_______________  
 
 
1. While Members appear to broadly agree on the need to prohibit subsidies contributing to 
illegal, unreported and unregulated (IUU) fishing and overfished stocks, significant differences of 
view persist in the Negotiating Group on Rules (R NG) on addressing subsidies that may contribute 
to overcapacity and overfishing, in particular subsidies for boat building and operating costs, such 
as for fuel. This also appears to be an area where Members of all levels of development see the need 
for so me flexibility in order to operate or maintain programs to support their fishermen, including in 
small scale and artisanal fisheries. A potential approach that would impose meaningful constraints 
on subsidies while at the same time responding to these repe ated calls for flexibility could entail 
negotiating Member -specific subsidy caps, expressed in monetary terms, and in certain cases phase -
downs. Such an approach would be based on the following parameters.  
 
• Subsidies in excess of a Member's cap would be pr ohibited.  
• Subsidies that support IUU or high seas fishing, and subsidies for fishing that negatively 
affect overfished stocks would be prohibited, notwithstanding a Member's subsidy cap. 
The cap is intended to supplement such prohibitions.  
• Members would al so commit to maintain fisheries management and conservation measures, 
so as not to contribute to adverse impacts on their fisheries resources.  
• A cap would be without prejudice to the rules and disciplines contained in the GATT  1994 or 
the SCM Agreement.  
 
2. The modalities of such an approach would include the following elements:  
 
Baseline subsidy notification and additional information . As a first step, and consistent with 
Article  25.3 of the SCM Agreement and Subsidy Committee practice 1, all Members would est ablish 
a baseline for a subsidy cap by submitting an up -to-date fisheries subsidies notification (i.e., covering 
the most recent two years). Critically, the value of any subsidies given must be provided if available, 
even if only a reasonable estimate.  
 
Member-Specific Subsidy Caps/Default Cap . Taking into consideration this information, Members 
would establish individual Member limits (or "caps") on such subsidies that would be reflected in a 
Schedule to the agreement. In order to take into account the spe cific circumstances of Members, a 
three -tier approach that is representative of Members' respective contributions to global marine 
capture production and trade could be pursued, based on the following parameters.  
 
• Tiered commitment levels  would be based on  a three -year average of FAO marine capture 
production and export data for the most recent representative period for which data are 
available, 2015 -2017 for marine capture and 2014 -2016 for exports.  
                                                
1 G/SCM/6/Rev.1.  TN/RL/GEN/197/Rev.1  
 
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  • Tier 1 : Members that account for either 0.7% or more of global marine capture production 
or 0.7% or more of global seafood exports2 would be required to negotiate with other 
Members, on a request -offer basis, individual "subsidy caps" in monetary terms to be 
reflected in a Schedule to the agreement.  
• Tier 2 : Mem bers that account for more than 0.05% of global marine capture production or 
global seafood exports (but less than 0.7%, per above) would have the option to negotiate 
a cap, based on the recent subsidy information provided, or to accept a "Default Subsidy 
Cap" value of $5 million annually.  
• Tier 3 : Members that account for less than 0.05% of global marine capture production or 
global seafood exports would not be required to schedule a cap.  
 
Reduction Commitments . In order to ensure a fair and balanced outcom e that fulfils the Ministerial 
mandate, any Member in Tier 1 would also be required to reduce its subsidy cap over a negotiated 
period of time at a rate commensurate with its overall level of subsidization, meaning that those 
Members with the largest subsi dy caps would also be expected to undertake the largest subsidy 
cuts. During the request -offer negotiations, consideration would be given to the nature of a Member's 
fisheries subsidy programs, and to situations in which a Member has historically notified relatively 
small fisheries subsidy programs. Additional consideration should be given to incentivizing Tier 2 
Members that voluntarily reduce their cap (e.g., with priority technical assistance).  
 
Transparency : Tier 1 and 2 Members would need to maintain u p-to-date fisheries subsidy 
notifications in order to continue to benefit from their cap. Tier 3 Members would also need to 
maintain up -to-date fisheries subsidy notifications in order to maintain their exempt status.  
 
Review mechanism : The agreement would  include a review mechanism, so that Members’ caps (and 
Tier levels) can be reviewed and, as appropriate, revised, over time.  For example, Members would 
monitor marine capture production and export data both to identify any changes in individual 
Members’ global shares of marine capture production or exports that would shift a Member from one 
Tier to another.  
 
3. To implement the approach outlined above, the RNG would establish a clear process and 
associated time frame for negotiating subsidy caps in order to  include these caps in a schedule as 
part of the final agreement:  
 
• Spring 2019 : For the purpose of RNG negotiations, Members notify existing fisheries 
subsidies programs consistent with Article 25.3 of the SCM Agreement (notwithstanding the 
SCM Agreement n otification deadline of 30  June).  
• Summer 2019 : Members falling in Tier 1 (and Tier 2, should they opt to do so) engage in 
request -offer negotiations regarding subsidy cap and reduction commitments, as 
appropriate.  
• Autumn 2019 : Members negotiate and finaliz e subsidy cap and reduction schedules.  
 
4. In order to facilitate Members' review and understanding of this proposal, the Table in the 
Annex sets out relevant FAO marine capture production and export data for the periods 2015 -2017 
and 2014 -2016 respectively, and Tier designations under the principles outlined above.  
 
_______________  
 
                                                
2 "Seafood exports" refers to FAO export data for "fisheries commodities" (which includes products of wild 
capture and aquaculture), less data for the FAO categories "corals and shells", "seaweeds and aquatic  plants", 
"sponges", and "waste". All other aquatic species are included, e.g., crustaceans, molluscs, finfish, and other 
aquatic animals such as sea urchins.  TN/RL/GEN/197/Rev.1  
 
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  ANNEX I  
Revision  
Membership Tables according to Marine Capture Production, Exports, and Tiers  
(FAO Fisheries and Aquaculture Information and Statistics Branch  
online query, accessed 23 April 2019)  
 
Notes on Categories : 
 
Members : Entries reflect FAO nomenclature and data, except to the extent adjusted to correspond to official 
WTO Member names. They do not necessarily reflect Australian or US nomenclature or recognition of specific 
jurisdictions.  
 
Tiers: See explanation in Paragraph 2 above. WTO Members with neither marine capture nor export data reported 
in the FAO database are de signated by default as Tier 3 and denoted 3* in the table.  
 
Marine Capture Production:  Marine capture data from FAO does not include aquaculture nor capture from inland 
waterways. FAO defines capture production as excluding aquaculture and mariculture. It reflects wild catch of 
aquatic species from "nineteen major marine fishing areas with their adjacent seas; and Oceans/suboceans 
(suboceans are climatic belts within oceans.)". Consistent with FAO's "State of World Fisheries and Aquaculture" 
report and init ial data presented by the Secretariat to the NGR, data were generated to exclude the categories 
"aquatic plants", "whales, seals, and other aquatic mammals", and the subcategory for alligators and crocodiles. 
All other aquatic species are included, such as  crustaceans, molluscs, finfish, and FAO's "miscellaneous" category, 
which includes items such as sea urchins and turtles. (FAO Fisheries and Aquaculture Information and Statistics 
Branch online query, accessed 23 April 2019).  
 
Export Data : FAO export data  for "fisheries commodities" (which includes products of wild capture and 
aquaculture), less data for the FAO categories "corals and shells", "seaweeds and aquatic plants", "sponges", 
and "waste". All other aquatic species are included, such as crustaceans , molluscs, finfish, and other aquatic 
animals such as sea urchins and turtles. Processed products derived from these species are also included. All 
data are from FAO, except for the EU -28 and the total excluding intra -EU trade. The EU -28 figures, which ex clude 
trade among the EU members, are from the Global Trade Atlas database and reflect exports to non -EU countries 
of all products in chapter 03, headings 1604 and 1605, and subheadings 0511.91, 1504.10 and 1504.20 of the 
Harmonized System. FAO and Global Trade Atlas export data cover a similar range of products, but small 
differences in coverage may exist. (FAO Fisheries and Aquaculture Information and Statistics Branch online 
query, accessed 31 January 2019.)  
 
WTO Member  Production (MT):  
Average Marine 
Capture,  
2015 -17 Prod.  
World 
Share  Exports 
(1,000   USD):  
Average fisheries 
commodity 
exports, 2014 -16 Export  
World 
Share  Tier 
Tier 1 – 28 Members, sorted by Marine Capture World Share  
China                  13,789,343  17.30%            20,284,446  17.91%  1 
Indonesia                    6,183,529  7.76%              3,903,311  3.45%  1 
European Union1                   5,328,002  6.68%              5,393,287  4.76%  1 
United States2                   4,981,511  6.26%              5,567,255  4.91%  1 
Russian Federation                    4,410,954  5.53%              3,773,155  3.33%  1 
Peru                    4,230,066  5.31%              2,475,998  2.19%  1 
India                    3,643,852  4.57%              5,339,513  4.71%  1 
Japan                    3,235,552  4.06%              1,934,193  1.71%  1 
Vietnam                    2,953,673  3.71%              7,368,243  6.50%  1 
Norway                    2,231,634  2.80%            10,253,491  9.05%  1 
Philippines                    1,848,794  2.32%                 831,562  0.73%  1 
Chile                    1,734,146  2.18%              5,269,942  4.65%  1 
Malaysia                    1,512,608  1.90%                 753,142  0.66%  1 
Korea, Republic of                    1,449,522  1.82%              1,615,935  1.43%  1 
Morocco                    1,381,140  1.73%              2,024,426  1.79%  1 
                                                
1 Includes FAO data for Aruba, Bonaire/S.Eustatius /Saba, Curaçao, French Guiana, French Polynesia, 
French Southern Terr., Guadeloupe, Martinique, Mayotte, New Caledonia, Réunion, Saint Barthélemy, Saint -
Martin, Sint Maarten, St. Pierre and Miquelon, and Wallis and Futuna Is.  
2 Includes FAO data for Americ an Samoa, Guam, Northern Mariana Islands, Puerto  Rico, and US Virgin 
Islands.  TN/RL/GEN/197/Rev.1  
 
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  WTO Member  Production (MT):  
Average Marine 
Capture,  
2015 -17 Prod.  
World 
Share  Exports 
(1,000   USD):  
Average fisheries 
commodity 
exports, 2014 -16 Export  
World 
Share  Tier 
Mexico                    1,363,052  1.71%              1,077,344  0.95%  1 
Thailand                    1,316,457  1.65%              6,066,735  5.36%  1 
Myanmar                    1,185,237  1.49%                 505,127  0.45%  1 
Iceland                    1,183,032  1.48%              2,066,497  1.82%  1 
Chinese Taipei                       828,242  1.04%              1,694,865  1.50%  1 
Canada                       821,951  1.03%              4,686,099  4.14%  1 
Argentina                       781,586  0.98%              1,583,733  1.40%  1 
Ecuador                       668,866  0.84%              3,954,002  3.49%  1 
Bangladesh                       621,283  0.78%                 535,418  0.47%  1 
Mauritania                       587,703  0.74%                 549,458  0.49%  1 
South Africa                       566,080  0.71%                 593,469  0.52%  1 
New Zealand                       427,511  0.54%              1,186,250  1.05%  1 
Australia                       174,765  0.22%              1,068,880  0.94%  1 
Tier 2 – 51 Members, sorted by Marine Capture World Share  
Namibia                       506,132  0.63%                 662,818  0.59%  2 
Brazil                       478,096  0.60%                 224,322  0.20%  2 
Angola                       469,540  0.59%                   73,042  0.06%  2 
Sri Lanka                       436,190  0.55%                 209,947  0.19%  2 
Senegal                       434,181  0.54%                 375,539  0.33%  2 
Nigeria                       408,587  0.51%                   77,319  0.07%  2 
Pakistan                       373,354  0.47%                 360,798  0.32%  2 
Turkey                       340,459  0.43%                 729,329  0.64%  2 
Oman                       294,722  0.37%                 154,876  0.14%  2 
Papua New Guinea                       276,148  0.35%                 162,305  0.14%  2 
Ghana                       261,845  0.33%                   65,136  0.06%  2 
Venezuela, Bolivarian Rep. of                       239,715  0.30%                   32,996  0.03%  2 
Mozambique                       209,796  0.26%                   48,087  0.04%  2 
Cameroon                       200,127  0.25%                      1,781  0.00%  2 
Sierra Leone                       200,000  0.25%                   10,462  0.01%  2 
Yemen                       155,518  0.20%                 155,031  0.14%  2 
Panama                       139,081  0.17%                 194,922  0.17%  2 
Hong Kong, China                       138,507  0.17%                   91,376  0.08%  2 
Maldives                       133,267  0.17%                 139,850  0.12%  2 
Seychelles                       122,763  0.15%                 430,210  0.38%  2 
Cambodia                       120,638  0.15%                   59,669  0.05%  2 
Tunisia                       113,788  0.14%                 156,201  0.14%  2 
Madagascar                       107,963  0.14%                 135,094  0.12%  2 
Egypt                       105,785  0.13%                   36,193  0.03%  2 
Belize                       103,160  0.13%                   41,170  0.04%  2 
Guinea                       100,000  0.13%                   12,220  0.01%  2 
Saint Kitts and Nevis                          83,873  0.11%                         382  0.00%  2 
Ukraine                          73,233  0.09%                   29,078  0.03%  2 
United Arab Emirates                          73,000  0.09%                   99,672  0.09%  2 
Saudi Arabia, Kingdom of                          68,071  0.09%                   97,444  0.09%  2 
Solomon Islands                          65,118  0.08%                   62,689  0.06%  2 
Côte d'Ivoire                          60,993  0.08%                 116,198  0.10%  2 
Tanzania                          60,232  0.08%                 153,649  0.14%  2 
Colombia                          58,583  0.07%                 182,458  0.16%  2 
The Gambia                          55,852  0.07%                      2,477  0.00%  2 
Georgia                          55,599  0.07%                   26,881  0.02%  2 
Uruguay                          54,237  0.07%                 119,833  0.11%  2 
El Salvador                          51,281  0.06%                   98,329  0.09%  2 
Vanuatu                          50,324  0.06%                   83,275  0.07%  2 
Suriname                          45,398  0.06%                   91,233  0.08%  2 
Nicaragua                          45,059  0.06%                 291,434  0.26%  2 
Republic of the Congo                          44,932  0.06%                         910  0.00%  2 
Fiji                         41,764  0.05%                   57,493  0.05%  2 
Guyana                          39,859  0.05%                   86,672  0.08%  2 
Mauritius                          19,666  0.02%                 319,780  0.28%  2 
Costa Rica                          14,700  0.02%                 133,696  0.12%  2 
Guatemala                          14,370  0.02%                 106,779  0.09%  2 
Honduras                          10,553  0.01%                 415,426  0.37%  2 
Singapore                            1,203  0.00%                 345,277  0.30%  2 
Uganda  No data  -                124,238  0.11%  2 
Kazakhstan  No data  -                  63,010  0.06%  2 TN/RL/GEN/197/Rev.1  
 
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  WTO Member  Production (MT):  
Average Marine 
Capture,  
2015 -17 Prod.  
World 
Share  Exports 
(1,000   USD):  
Average fisheries 
commodity 
exports, 2014 -16 Export  
World 
Share  Tier 
Tier 3 – 57 Members, sorted by Marine Catch World Share  
Saint Vincent and the Grenadines                          27,308  0.03%                         523  0.00%  3 
Cabo Verde                          25,438  0.03%                   58,228  0.05%  3 
Cuba                          21,892  0.03%                   54,976  0.05%  3 
Togo                          21,004  0.03%                      1,849  0.00%  3 
Gabon                          20,000  0.03%                      3,083  0.00%  3 
Benin                          17,095  0.02%                         433  0.00%  3 
Kenya                          16,268  0.02%                   33,409  0.03%  3 
Haiti                          15,910  0.02%                      8,236  0.01%  3 
Qatar                          15,026  0.02%                      1,449  0.00%  3 
Bahrain, Kingdom of                          15,000  0.02%                   25,979  0.02%  3 
Jamaica                          13,617  0.02%                   11,674  0.01%  3 
Trinidad and Tobago                          13,064  0.02%                   23,264  0.02%  3 
Dominican Republic                          12,954  0.02%                   12,849  0.01%  3 
Liberia                          12,536  0.02%                         464  0.00%  3 
Brunei Darussalam                            9,509  0.01%                      3,454  0.00%  3 
Samoa                            9,450  0.01%                   10,986  0.01%  3 
Guinea -Bissau                            6,550  0.01%                      4,791  0.00%  3 
Democratic Republic of the Congo                            6,366  0.01%                      1,422  0.00%  3 
Albania                            6,203  0.01%                   52,203  0.05%  3 
Kuwait, the State of                            4,586  0.01%                         622  0.00%  3 
Antigua and Barbuda                            3,165  0.00%                         314  0.00%  3 
Grenada                            2,602  0.00%                      7,083  0.01%  3 
Saint Lucia                            2,090  0.00%                           13  0.00%  3 
Djibouti                            2,085  0.00%                           81  0.00%  3 
Tonga                            1,586  0.00%                      5,026  0.00%  3 
Barbados                            1,564  0.00%                         499  0.00%  3 
Macau, China                            1,500  0.00%  No data  - 3 
Israel                            1,324  0.00%                   24,848  0.02%  3 
Montenegro                               895  0.00%                           52  0.00%  3 
Dominica                               861  0.00%                           16  0.00%  3 
Jordan                               277  0.00%                             0  0.00%  3 
Armenia  No data  -                  19,646  0.02%  3 
Botswana  No data  -                        306  0.00%  3 
Burkina Faso  No data  -                        588  0.00%  3 
Burundi  No data  -                        220  0.00%  3 
Chad  No data  -                          49  0.00%  3 
Eswatini  No data  -                            5  0.00%  3 
Kyrgyz Republic  No data  -                          74  0.00%  3 
Lao People's Democratic Rep.  No data  -                        188  0.00%  3 
Lesotho  No data  -                     2,108  0.00%  3 
North Macedonia   No data  -                        597  0.00%  3 
Malawi  No data  -                        142  0.00%  3 
Mali No data  -                        383  0.00%  3 
Moldova, Rep. of  No data  -                            4  0.00%  3 
Mongolia  No data  -                          97  0.00%  3 
Nepal  No data  -                            7  0.00%  3 
Niger  No data  -                        557  0.00%  3 
Paraguay  No data  -                          29  0.00%  3 
Rwanda  No data  -                     1,939  0.00%  3 
Switzerland  No data  -                  20,610  0.02%  3 
Zambia  No data  -                        605  0.00%  3 
Zimbabwe  No data  - 11,650  0.01%  3 
Afghanistan  No data  - No data  - 3* 
Bolivia, Plurinational State of  No data  - No data  - 3* 
Central African Republic  No data  - No data - 3* 
Liechtenstein  No data  - No data  - 3* 
Tajikistan  No data  - No data  - 3* 
Total for all WTO Members  
with reported data  77,305,081   110,512,407    
Total,  
Non-Member countries & territories  2,404,902   2,765,639    
Global total  79,709,983   113,278,046    
 
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