TN/RL/W/276/Rev.2  
 
8 November  2021 
(21-8461) Page: 1/8 
Negotiating Group on Rules  Original: English  
 
NEGOTIATING GROUP ON RULES – FISHERIES SUBSIDIES  
REVISED DRAFT TEXT  
Note: This document is without prejudice to any Member 's positions or views, whether or not 
reflected herein.  
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ARTICLE  1: SCOPE  
1.1  This [Instrument] applies to subsidies, within the meaning of Article  1.1 of the SCM  Agreement 
that are specific within the meaning of Article  2 of that Agreement, to marine wild capture fishing 
and fishing related activities at sea.1, 2 
1.2  [Notwithstanding paragraph  1 of this Article, this [Instrument] also applies to fuel subsidies to 
fishing and fishing related activities at sea that are not specific within the meaning of Article  2 of the 
SCM Agreement.]  
ARTICLE  2: DEFINITIONS  
For the purpose of this [Instrument]:  
(a) "fish" means all species of living marine resource s, whether processed or not ; 
(b) "fishing" means searching for, attracting, locating, catching, taking or harvesting fish 
or any activity which can reasonably be expected to result in the attracting, locating, 
catching, taking or harvesting of fish;  
(c) "fishing related activities" means any operation in support of, or in preparation for, 
fishing, including the landing, packaging, processing, transshipping or transport ing of 
fish that have not been previously landed at a port, as well as the provisioning of 
personnel, fuel, gear and other supplies at sea;  
(d) "vessel" means any vessel, ship of another type or boat used for, equipped to be used 
for, or intended to be used fo r, fishing or fishing related activities ; 
(e) "operator" means the owner of a vessel, or any person , who is in charge of or directs 
or controls the vessel.  
  
 
1 For greater certainty, aquaculture and inland fisheries  are excluded from the scope  of this 
[Instrument].  
2 For greater certainty, government -to-government payments under fisheries access agreements shall 
not be deemed to be subsidies within the meaning of this [Instrument].  TN/RL/W/276/Rev.2  
 
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  ARTICLE  3: SUBSIDIES  CONTRIBUTING  TO 
ILLEGAL, UNREPORTED  AND UNREGULATED FISHING3 
3.1  No Member shall grant or maintain any subsidy to a vessel or operator4 engaged in illegal, 
unreported and unregulated (IUU) fishing  [or fishing related activities in support of such fishing ]. 
3.2  For purposes  of Article  3.1, a vessel  or operator shall be considered to be engaged in IUU fishing 
if an affirmative  determination thereof is made by any of the following5, 6: 
(a) a coastal Member, for activities in waters under its jurisdiction; or  
(b) a flag State Member, for activities by vessels flying its flag; or  
(c) a relevant Regional Fisheries Management Organization or Arrangement (RFMO/A), in 
accordance with the rules and procedures of the RFMO/A  and relevant international 
law, in areas and for species under its competence . 
3.3 (a) An affirmative  determination7 under Article  3.2 refers to the final finding by a Member 
and/or the final listing by an RFMO/A that a vessel or operator has engaged in IUU 
fishing.  
[ALT1   
(b) The prohibition under Article  3.1 shall apply where the determination under 
Article  3.2(a) is based on positive evidence and follows due process .  
(c) For the purpose of subparagraph  (b), the coastal Member shall promptly notify the flag 
State Member and, if known, the subsidizing Member , of the initiation of an IUU fishing 
investigation  , and shall provide an opportunity to the flag State and subsidizing Member 
to submit  information to be taken into account in the determination .] 
[ALT2   
(b) For purposes of Article 3.2(a), the prohibition under Article 3.1 shall apply when the 
coastal Member has provided to the flag State Member and, if known, the subsidizing 
Member, the following:  
(i) timely notification, through appropriate channels, [that a vessel or operator 
has been detained for engagement in IUU fishing] [of the initiation of an IUU 
fishing inve stigation], including reference to the applicable laws, regulations, 
administrative procedures, or other relevant measures; and  
(ii) an opportunity to provide relevant information, including by affording an 
opportunity to dialogue with appropriate officials if requested by the flag State 
or subsidizing Member, prior to a determination, so as to allow such information 
to be given due consideration in the final determination. The coastal Member 
may specify the manner and time period in which such information must be 
provided. ]  
 
3 "Illegal, unreported and unregulated (IUU) fishing" refers to  activities set out in paragraph  3 of the 
International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing  
adopted by the UN Food and Agriculture Organization (FAO) in 2001.  
4 For the purpose of Article  3, the term " operator" means  the operator  within the meaning of Article  2(e) 
at the time of the IUU fishing infraction. For greater certainty, the prohibition on granting or maintaining 
subsidies to operators engaged in IUU fishing applies to subsidies provided to fish ing and fishing related 
activities at sea.  
5 Nothing in this Article shall be interpreted to obligate Members to initiate IUU fishing investigations or 
make IUU fishing determinations.  
6 This Article shall have no legal implications regarding the competence  under other international 
instruments of any of the listed entities  to make an IUU fishing determination .  
7 Nothing in this Article shall be interpreted to delay, or affect the validity or enforceability of , an IUU 
fishing determination.  TN/RL/W/276/Rev.2  
 
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  3.4  The subsidizing Member may take into account the nature, gravity and repetition  of IUU fishing 
committed by a vessel or operator when setting the duration of application of the prohibition in 
Article  3.1. In any case , the prohibition in  Article  3.1 shall apply as long as the sanction8 resulting 
from a determination triggering the prohibition remains in force, or as long as the vessel or operator 
is listed as engaged in IUU fishing, whichever is the longer.  
3.5  Where a port State Member notifies a subsidizing Member that it has clear grounds to believe 
that a vessel in one of its ports has engaged in IUU fishing, the subsidizing Member shall give due 
regard to the information received and take such actions in respect of its subsidies as it deems 
appropriate.  
3.6  Each Member shall have laws, regulations and/or administrative procedures in place to ensure 
that subsidies referred to in Article  3.1, including such subsidies existing at the entry into force of 
this [Instrumen t], are not granted or maintained.  
3.7  Each Member shall notify to the [Committee] its laws, regulations and/or administrative 
procedures referred to in Article  3.6. This notification shall be made upon entry into force of this 
[Instrument]. Each Member shall promptly notify any subsequent amendments to its relevant laws, 
regulations and/or administrative procedures.  
3.8 [For a period of [2] years from the date of entry into force of this [Instrument], subsidies granted 
or maintained by developing country Members, including least -developed country (LDC) Members, 
for low income, resource -poor and livelihood fishing or fishing related  activities up to [12] nautical 
miles measured from the baselines  shall be  exempt from actions based on Articles  3.1 and 10 of this 
[Instrument] .] 
ARTICLE  4: SUBSIDIES REGARDING  OVERFISHED STOCKS  
4.1  No Member shall grant or maintain subsidies for fishing or fishing related activities regarding 
an overfished stock . 
4.2  For the purpose of this Article, a  fish stock is overfished if it is  recognized  as overfished by the 
coastal Member under whose jurisdiction the fishing is taking place or by a relevant RFMO/A  in areas 
and for species under its competence , based on best scientific evidence available to it. 
4.3  Notwithstanding Article  4.1, a  Member may grant or maintain subsidies referred to  in Article  4.1 
if such subsidies [and/or measures] are implemented to promote the rebuilding of the stock to a 
biologically sustainable level .9  
4.4  [For a  period of [2] years from the date of entry into force of this [Instrument], subsidies 
granted or maintained by developing country Members, including LDC Members, for low income, 
resource -poor and livelihood fi shing or fishing related activities up to [12] nautical miles measured 
from the baselines shall be  exempt from actions based on Articles  4.1 and 10 of this [Instrument] .] 
  
 
8 Termination of sanctions is as provided for under the laws or procedures of the authority having made 
the determination referred to in Article  3.2, including by way of, for example: re -issuance of a suspended 
license; full prosecution of the matter; and delist ing, forfeiture, sinking or scrapping of the vessel concerned.   
9 For the purpose of this paragraph, a biologically sustainable level is the level determined by a coastal 
Member having jurisdiction over the area where the fishing or fishing related activit y is taking place, using 
reference point s such as maximum sustainable yield (MSY) or other reference points , commensurate with the 
data available for the fishery ; or by a relevant RFMO/A  in areas and for species under its competence . TN/RL/W/276/Rev.2  
 
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  ARTICLE  5: SUBSIDIES  CONTRIBUTING  TO OVERCAPACITY AND OVERFISHING  
5.1  No Member shall grant or maintain subsidies to fishing or fishing related activities that 
contribute to overcapacity or overfishing.  For the purpose of this paragraph, subsidies that  contribute 
to overcapacity or overfishing include : 
(a) subsidies to cons truction, acquisition, modernisation, renovation or upgrading of 
vessels;  
(b) subsidies to the purchase of machines and equipment for vessels (including fishing 
gear and engine, fish -processing machinery, fish -finding technology, refrigerators, or 
machinery for sorting or cleaning fish);  
(c) subsidies to the purchase/cos ts of fuel, ice, or bait;  
(d) subsidies to costs of personnel, social charges, or insurance;  
(e) income support of vessels or operators or the workers they employ;  
(f) price support  of fish caught ; 
(g) subsidies to at -sea support;  
(h) subsidies cover ing operating losses of vessels or fishing or fishing related activities ; 
and 
(i) [subsidies contingent upon, or tied to, actual or anticipated fishing or fishing related 
activities in areas beyond the subsidizing Member's jurisdiction (whether solely or as 
one of several other conditions).10] 
5.1.1  A subsidy is not inconsistent with Article  5.1 if the subsidizing Member demonstrates  
that measures are implemented to maintain the stock or stocks in the r elevant fishery or 
fisheries at a biologically sustainable level.9 
5.2  No Member shall grant or maintain subsidies provided  to fishing or fishing related activities 
outside of the jurisdiction of a coastal Member  [or a coastal non-Member ] and outside the 
competence of a relevant RFMO/A.  
5.3   
[ALT 1 No Member shall grant or maintain subsidies for a vessel not flying the flag o f the subsidizing 
Member.]  
[ALT 2 No Member shall grant or maintain subsidies under Article 5.1 for a vessel over which it 
cannot exercise jurisdiction or control or cannot otherwise ensure that the vessel to which the 
subsidy is granted is not engaging in activities which contribute to overfishing or overcapacity. ] 
 
 
 
 
 
 
10 The mere fact that a subsidy is granted or maintained to vessels or operators that may be engaged in 
fishing or fishing related activities in areas beyond the subsidizing Member's jurisdiction shall not for that 
reason alone be considered to be contingent u pon, or tied to, such  fishing or fishing related activities . TN/RL/W/276/Rev.2  
 
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  5.4  (a) [A developing country Member may grant or maintain the subsidies referred to in 
Article  5.1 to fishing and fishing related activities [within its EEZ and the area of 
competence of a relevant RFMO/A ] for a maximum of [ X] years after the entry into 
force of th is [Instrument]. A  developing country Member intending to invoke this 
provision shall inform the [Committee] in writing before the date of entry into force of 
this [Instrument]. ]  
 (b) In addition , a developing country Member may grant or maintain the subsidies referred 
to in Article  5.1 to fishing and fishing related activities : 
(i) [if its annual share of the global volume of marine capture production does not 
exceed [0.7%] as per the most recent published FAO data11]; 
(ii) for low income, resource -poor and li velihood fishing or fishing related activities 
up to [12] nautical miles measured from the baselines.  
(c) While applying Article 5. 4, a Member shall endeavour to ensure that its subsidies do 
not contribute to overcapacity or overfishing.  
ARTICLE  6: SPECIFIC PROVISIONS FOR LDC MEMBERS  
6.1 The prohibition under Article 5.1 shall not apply to LDC Member s. 
6.2  
[ALT 1  An LDC Member may grant or maintain the subsidies referred to in Article  5.1 to fishing and 
fishing related activities [within its EEZ and the area of competence of a relevant RFMO/A ] for a 
maximum of [ X] years  after the entry into force of a decision of the UN General Assembly to exclude 
that Member from the "Least Developed Countri es" category .] 
[ALT 2 Provisions relating to LDC Members shall continue to apply for a transitional period of [X] 
years after the entry into force of a decision of the UN General Assembly to exclude a Member from 
the "Least Developed Countries " category.]  
6.3 A Member shall exercise due restraint in raising matters involving an LDC Member and solutions 
explored shall take into consideration the specific situation of the LDC Member involved, if any.  In 
addition, a  Member subject to Article 6.1  or 6.2 shall endeavour to ensure that its subsidies do not 
contribute to overcapacity or overfishing . 
ARTICLE  7: TECHNICAL ASSISTANCE AND CAPACITY BUILDING  
[Targeted technical assistance and capacity building assistance to developing country 
Members, including LDC Members  and land -locked developing country Members  shall be provided  
for the purpose  of implementation of the disciplines under this [Instrument].  In support of this 
assistance, a voluntary WTO funding mechanism shall be established in cooperation with rel evant 
international organizations such as the Food and Agriculture Organization of the United Nations 
(FAO)  and International Fund for Agricultural Development .]  
 
11 A Member remains exempted until its share exceeds the threshold for three consecutive years. It shall 
be re-included in 5. 4(b)(i) when its share of the global volume of marine capture  productio n falls back below 
the threshold  for three consecutive years . TN/RL/W/276/Rev.2  
 
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  ARTICLE  8: NOTIFICATION AND TRANSPARENCY  
8.1  Without prejudice to Article  25 of the SCM Agreement and i n order to strengthen and enhance 
notifications of fisheries subsidies, and to enable more effective surveillance of the implementation 
of fisheries subsidies commitments, each Member shall  
(a) provide the following information as part of its regular notification of fisheries subsidies 
under Article  25 of the SCM  Agreement12,13: 
(i) type or kind of fishing activity for which the subsidy is provided;  and 
(ii) catch data by species in the fishery for which the subsidy is provided14; and 
(b) to the extent  possible, provide the following information as part of its regular 
notification of fisheries subsidies under Article  25 of the SCM  Agreement13:  
(i) status of the fish stocks in the fishery for which the subsidy is provided (e.g. 
overfished, maximally s ustainably fished, or underfished)  and the reference 
points used , and whether such stocks are shared with any other Member15 or 
are managed by an RFMO/A;  
(ii) conservation and management measures in place for the relevant fish stock;  
(iii) name and identification number of the fishing vessel or vessels benefitting from 
the subsidy;  and 
(iv) fleet capacity in the fishery for which the subsidy is provided . 
8.2  Each Member shall notify the [Committee ] in writing on an annual basis of : 
(a) any list of vessels and operators that it has determined as having been engaged in 
IUU fishing ; 
(b) [any vessels and operators for which the Member has information that reasonably 
indicates the use of forced labo ur, along with relevant information to the extent 
possible; and ] 
(c) a list of any fisheries access agreements  or arrangements  in force with another 
government or governmental authority , and such notification shall consist of :  
(i) the titles of the agreements  or arrangements ;  
(ii) a list of their parties ;  
(iii) the full text of the agreement or arrangement ;  
(iv) annual amounts paid by the government and agreed level of fees for its 
operators ;  
(v) allowable catches, number of licences or capacity ; and 
 
12 For the purpose of Article  8.1, Members shall provide this information in addition to all the information 
required under Article  25 of the SCM  Agreement and as stipulated in any questionnaire utilized by the SCM 
Committee, for example G/SCM/6/Rev.1.  
13 For LDC Members , and developing coun try Members  with an annual  share of the  global volume of 
marine capture production not exceed ing [0.7%] as per the most recent published FAO data , the notification of 
the additional information in this subparagraph may be made every four years . 
14 For multi species fisheries, a Member  instead  may provide other relevant and available catch data. 
15 The term "shared stocks" refers to stocks that occur with in the exclusive economic zones (EEZ) of two 
or more coastal Members, or both within the EEZ and in an area beyond and adjacent to it.  TN/RL/W/276/Rev.2  
 
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  (vi) effective list of authorised vessels, with vessel name and identification number.  
A Member may meet this obligation by providing an up -to-date electronic link to the 
Member's or other appropriate official web page that sets out t his information.  
8.3  A Member may request additional information from the notifying Member regarding the 
notifications and information provided under paragraphs  1 and 2. The notifying Member shall 
respond to that request as quickly as possible in writing and in a comprehensive manner. If a Member 
considers that a notification or information under paragraphs  1 and 2 has not been provided, the 
Member may bring the matter to the attention of such other Member or to the [Committee ].  
8.4 (a) A Member may only invoke Article  4.3, Article  5.1.1, or Article  5.4 in respect of 
subsidies which  it has notified to the [Committee] under Article  25 of the 
SCM Agreement and Article  8.1 of this [Instrument].  
(b) In addition, a Member may only invoke Article  4.3 or Article  5.1.1 if the Member has 
provided the information called for in Articles  8.1(b)(i) and 8.1(b) (ii). 
8.5  [Members shall notify to the [Committee] in writing , upon entry into force of this [Instrument] , 
of any RFMO/A to which they are parties. This notification shall consist of at least, the text of the 
legal instrument instituting that RFMO/A, the area and species under their competence, the 
information on the  status of the managed fish stocks, a description of the conservation and 
management measures, the regime governing the adoption of IUU fishing determinations, and the 
updated lists of vessels and/or operators that it has determined as having been engaged in IUU 
fishing. This notification may be presented either individually or by a group of Members .16 Any 
changes to this information shall be notified  promptly  to the [Committee] . The [Secretariat to the 
Committee] shall maintain a list of RFMO/A notified pu rsuant to this Article. ] 
8.6  Nothing in this  Article  requires the provision of confidential information . 
ARTICLE  9: INSTITUTIONAL ARRANGEMENTS  
[9.1  There is hereby established a [ Committee ] composed of representatives from each of the 
Members. The Committee shall elect its own Chair and shall meet not less than twice a year and 
otherwise as envisaged by relevant provisions of this [Instrument]  at the request of any Member. 
The Committee sha ll carry out responsibilities as assigned to it under this [Instrument]  or by the 
Members and it shall afford Members the opportunity of consulting on any matter relating to the 
operation of th is [Instrument] or the furtherance of its objectives. The WTO S ecretariat shall act as 
the secretariat to the Committee.]  
9.2  Each Member shall, within one year of the date of entry into force of this [Instrument], inform 
the [Committee] of measures in existence or taken to ensure the implementation and administratio n 
of this [Instrument], including the steps taken to implement prohibitions set out in Articles  3, 4 
and 5. Each Member shall also inform the [Committee] of any changes to such measures thereafter. 
The [Committee] shall review annually the implementation a nd operation of this [Instrument], 
taking into account the objectives thereof.   
9.3  Each Member shall, within one year of the date of entry into force of this [Instrument], provide 
to the [Committee] a  description of its fisheries regime with references to its laws, regulations and 
administrative procedures relevant to this [Instrument], and promptly inform the [Committee ] of 
any modifications thereafter. A Member may meet this obligation by providing to  the [Committee] 
an up -to-date electronic link to the Member's or other appropriate official web page that sets out 
this information.  
9.4 The [Committee ] shall examine all information provided pursuant to Article s 3 and 8 and this 
Article  not less than eve ry two years . 
 
16  This obligation  can be met  by providing an up -to-date electronic link to the notifying Member's or 
other appropriate official web page that sets out this information.  TN/RL/W/276/Rev.2  
 
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  9.5  The [Committee ] shall maintain close contact with the relevant international organizations  in 
the field of fisheries management, especially with FAO and relevant RFMO/A s [with the objective of 
exchanging best practices and providing for a better understanding about the procedures for 
adopting IUU fishing determinations and evaluating the status of the fish stocks or fisheries pursuant 
to the implementation and administration of this [Instrument] ]. 
9.6  Not later than [X] after the date of  entry into force of this [Instrument] and periodically 
thereafter, the [Committee] shall review the operation of this [Instrument] with a view to making 
all necessary modifications to improve the operation of this [Instrument] , taking into account the 
objectives thereof.  
ARTICLE  10: DISPUTE SETTLEMENT  
The provisions  of Articles  XXII and XXIII of the GATT  1994 as elaborated  and applied  by the 
Dispute  Settlement  Understanding,  and Article  4 of the Agreement  on Subsidies  and Countervailing  
Measures  shall apply to consultations,  the settlement  of disputes,  and remedies  under  this 
[Instrument] , except  as otherwise  specifically  provided  herein.  
ARTICLE  11: FINAL PROVISIONS  
11.1  [Nothing in this [Instrument] shall be construed or applied in a manner which will affect the 
rights of land -locked country Members under public international law. ] 
11.2  Members shall  take special care  and exercise due restraint when granting subsidies to fishing 
or fishing related activities regarding stocks the status of which is  unknown.  
11.3  Except as provided in Articles  3 and  4, nothing in this [Instrument] shall prevent a Member 
from granting a subsidy for disaster17 relief, provided that the subsidy is:  
(a) limited to the relief of a particular disaster;  
(b) limited to the affected geographic area;  
(c) time-limited;  and 
(d) in the case of reconstruction subsidies, limited to restoring the affected area, the 
affected fishery, and/or the affected fleet up to [a sustainable level of fishing and/or 
fishing capacity as established throug h a scientific -based assessment of the status of 
the fishery and in no case beyond ] its pre -disaster level.  
11.4   (a) This [ Instrument ], including any findings, recommendations, and awards  with respect 
to this [Instrument], shall have no legal implications regarding territorial claims or 
delimitation of maritime boundaries . 
 (b) A panel  established pursuant to [ Article  10 of this Instrument ] shall not entertain any 
claim that would require it to address any issues of territorial claims or delimitation of 
maritime boundaries  that is contested by a party o r a third party.  
11.5  [Except as otherwise provided in this [Instrument], a Member does not thereby  become bound 
by measures or decisions of, or recognize, any RFMO/A of which it is not a party. ] 
__________  
 
17 For greater certainty, this provision does not apply to economic or financial cris es.