TN/RL/W/276/Rev.1  
 
30 June 2021 
(21-5249) Page: 1/8 
Negotiating Group on Rules  Original: English  
 
 
NEGOTIATING GROUP ON RULES – FISHERIES SUBSIDIES  
REVISED DRAFT CONSOLIDATED CHAIR  TEXT  
Note: This document is without prejudice to any Members' 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 re sult 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 transporting 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 b e used for, fishing or fishing related activities ; 
(e) "operator" means the owner of the vessel, or any person on board, 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.1  
 
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  ARTICLE  3: PROHIBITION ON SUBSIDIES TO  
ILLEGAL, UNREPORTED AND UNREGULATED FISHIN G3 
3.1  No Member shall grant or maintain any subsidy to a vessel or operator4 engaged in illegal, 
unreported and unregulated (IUU) 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.  
(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 ].] 
3.4  The subsidizing Member may take into account the natu re, 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 g rounds 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 [Instrument], are not granted or maintained.  
 
3 "Illegal, unreported and unregulated (IUU) fishing" refers to activities set out in p aragraph  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 oper ator 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 fishing 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.  
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 delisting, forfei ture, sinking or scrapping of the vessel concerned.   TN/RL/W/276/Rev.1  
 
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  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 no later than the 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: PROHIBITION ON SUBSIDIES CONCERNING 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 
biologi cally 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 fishing 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] .] 
ARTICLE  5: PROHIBITION ON SUBSIDIES CONCERNING  
OVERCAPACITY AND OVERFISHING  
5.1  No Member shall grant or maintain subsidies to fishi ng 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 construction, 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; and  
(h) subsidies cover ing operating losses of vessels or fishing or fishing related activities.  
 
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 activity is taking  place, using 
reference point s such as maximum sustainable yield (MSY), or other reference points based on indicators such 
as [level of depletion, or level of or trend in time series data on catch per unit effort, 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.1  
 
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  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 relevant fishery or 
fisheries at a biologically sustainable level.10 
5.2 (a) No Member shall grant or maintain subsidies contingent upon, or tied to , actual or 
anticipated fishing or fishing related activities in areas beyond the subsidizing 
Member's juris diction (whether solely or as one of several other conditions), including 
subsidies provided  to support at -sea fish -processing operations or facilities, such as 
for refrigerator fish cargo vessels, and subsidies to support tankers that refuel fishing 
vesse ls at sea .11 
 [(b) Subparagraph  (a) shall not apply to the non -collection from operators or vessels of 
government -to-government payments under agreements and other arrangements 
with coastal Member s for access to the surplus of the total allowable catch of the living 
resource s in waters under their jurisdiction, provided that the requirements under 
Article  5.1.1 are met. ] 
5.3  No Member shall grant or maintain subsidies provided  to fishing or fishing related activities 
outside of the jurisdiction of a coastal Member and outsid e the competence of a relevant RFMO/A.  
5.4  [No Member shall grant or maintain subsidies for a vessel not flying the flag of the subsidizing 
Member.]  
[ALT 1 
5.5 (a) The prohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
LDC Members for fishing or fishing related activities.  
(b) The prohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
developing country Members for fishing or fishing related activities within their 
territorial sea.  
(c) The prohibition under Article  5.1 shall apply to subsidies granted or maintained by 
developing country Members , including  LDC Members , for fishing or fishing related 
activities within their EEZ and the area of competence of RFMO/A if a ll the following 
criteria are met:  
i. the Member 's GNI per capita exceeds US$5,00012 (based on constant 2010 
US dollars) for three consecutive years;  
ii. the Member 's share of the annual global marine capture fish production 
exceeds 2% as per the most recent published FAO data;  
iii. the Member engages in distant water fishing13; and  
iv. the contribution from Agriculture, Forestry and Fishing to the Member 's 
annual national GDP14 is less than 10% for the most recent three consecutive 
years.]  
 
10 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 activity is taking place, using 
reference point s such as MSY, or other reference points based on indicators such as [level of depletion, or level 
of or trend in time series data on catch per unit effort, commensurate with the da ta available for the fishery]; 
or by a relevant RFMO/A  in areas and for species under its competence . 
11 With respect to Article  5.2(a), 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 a prohibited subsidy within the meaning of 
Article  5.2(a).  
12 US$5,000 (based on constant 2010 US dollars) as per published data of the World Bank.  
13 A Member is deemed not to be engaged in distant water fishing if its operators or vessels normally 
fish in FAO Major Fishing Area(s) that is(are) adjacent to the natural coastline of the flag State.  
14 Based on the latest published data of the  World Bank.  TN/RL/W/276/Rev.1  
 
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  [ALT 2 
5.5 (a) The pr ohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
LDC Members for fishing or fishing related activities.  
(b) The prohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
developing country Members for low income, resource -poor and livelihood fishing or 
fishing related activities up to 12 nautical miles measured from the baselines . 
(c) For subsidies other than those referred to in subparagraph  (b), a developing country 
Member may grant or maintain the subsidies referred to in Article  5.1 for fishing and 
fishing related activities within its EEZ and the area of competence of a relevant 
RFMO/A for a maximum of [5] years after the entry into force of this [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].  
(d) If a developing country Member whose:  
i. share of the annual global volu me marine capture fish production does not 
exceed [0.7%] as per the most recent published FAO data; and  
ii. subsidies to fishing or fishing related activities at sea do not exceed 
US$[25  million] annually  
deems it necessary to apply subsidies referred to in su bparagraph (c) beyond the [5] 
years provided for  in that subparagraph, it shall not later  than one year before the 
expiry of the applicable period enter into consultation with the [Committee], which will 
determine whether an extension of this period is jus tified, after examining all the 
relevant needs of the developing country Member in question. If the [Committee] 
determines that the extension is justified, the developing country Member concerned 
shall hold annual consultations with the [Committee] to dete rmine the necessity of 
maintaining the subsidies. If no such determination is made by the [Committee], the 
developing country Member shall phase out the remaining subsidies prohibited under 
Article  5.1 within two years from the end of the last authorized p eriod.]  
ARTICLE  6: SPECIFIC PROVISIONS FOR LDC MEMBERS  
6.1  [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.]  
6.2  A Member sha ll 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.  
ARTICLE  7: TECHNICAL ASSISTANCE AND CAPACITY BUILDING  
[Targeted technical a ssistance 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 relevant 
international organizations such as the Food and Agriculture Organization of the United Nations 
(FAO)  and International Fund For Agricultura l Development .]  TN/RL/W/276/Rev.1  
 
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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  Agreement15,16: 
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 provided; 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  Agreement17:  
i. status of the fish stocks in the fishery for which the subsidy is provided (e.g. 
overfished, maximally sustainably fished, or underfished) and whether such 
stocks are shared with any other Member18 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 ; and  
(b) a list of any fisheries access agreements in force with another government or 
governmental authority , and such notification shall consist of the titles of the 
agreements and a list of their parties.  
8.3  A Member may request additional information from the notifying Member regarding the 
notifications and information provided under p aragraphs  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 b ring 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  5.5 in respect of 
subsidies which it has notified to the [Committee] under Article  25 of the 
SCM Agreeme nt 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 information called for in Articles  8.1(b)(i) and 8.1(b) (ii). 
 
15 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.  
16 For developing country Members, including LDC Members, the notification of the additional 
information in this subparagraph may be made every four years.  
17 For developing country Members, including LDC Members, the notification of the additional  
information in this subparagraph may be made every four years.  
18 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.1  
 
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  8.5  [Members shall notify to the [Committee] in writing, on an annual basis, 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 m anaged 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. The [Secretariat to the 
Committee] shall maintain a list of RFMO/A notified pursuant to this Article. ] 
ARTICLE  9: [INSTITUTIONAL ARRANGEMENTS]  
[9.1  There is hereby established a [ Committee ] composed of representatives from each of the 
Members. The Committ ee 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 shall carry out responsibilities as assigned to it under this [Instrum ent] 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 Secretariat 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 administration 
of this [Instrument], including the steps tak en 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 and 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 proc edures 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 pag e 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 every two years . 
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 p rocedures 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 [Instrum ent] 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 statu s of which is unknown.  TN/RL/W/276/Rev.1  
 
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  11.3  Except as provided in Articles  3 and  4, nothing in this [Instrument] shall prevent a Member 
from granting a subsidy for disaster19 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 est ablished through 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 le gal 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.  
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19 For greater certainty, this provision does not apply to economic or financial cris es.