G/SCM/Q2/CHL/32  
31 May 2022 
(22-4098) Page: 1/4 
Committee on Subsidies and  Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
REPLIES TO QUESTIONS FROM AUSTRALIA1 REGARDING  
THE NEW AND FULL NOTIFICATION OF CHILE2 
The following communication, dated and received on 27 May 2022, is being circulated at the request 
of the delegation of Chile.  
 
_______________  
 
 
IV. FUND FOR THE PROMOTION AND DEVELOPMENT OF REMOTE AREAS  
 
The notification notes the range of the program me for small and medium -sized investors within 
specific remote and disadvantaged areas, including for small -scale fishing.  
 
Question 1  
 
How is "small -scale fishing" defined for the purposes of qualifying for this subsidy?  
 
Question 2  
 
Is this definition of "small -scale fishing" specific to this program under Decree -Law 
No. 3.529, which we understand is the authority of this Fund?  
 
Reply to questions 1 and 2  
 
The definition used in this programme is the same as the one used in the  National Institute for the 
Sustainable Development of Small -Scale Fisheries and Aquaculture  (INDESPA ) programme and can 
be found below, in the reply  to question 3. For the specific purposes of this subsidy, the definition 
indicated should be complemented by Decree -Law No. 3 .529 and Decree having Force of Law No.  3.3 
 
V. NATIONAL INSTITUTE FOR THE SUSTAINABLE DEVELOPMENT OF SMALL -SCALE 
FISHERIES AND AQUACULTURE  
 
Australia notes that this programme brings together two former support programmes, previously 
notified by Chile.  
 
Reply  
 
It is indeed the case that Law No. 21 .069, published on 15 February 2018, created INDESPA by 
merging two dev elopment funds for small -scale fishing: the Fisheries Administration Fund (FAP), 
under the auspices of the Undersecretariat of Fisheries and Aquaculture, and the Small -Scale Fishing 
Promotion Fund (FFPA), under the auspices of the National Fisheries and Aq uaculture Service.  
 
 
1 G/SCM/Q2/CHL/31.  
2 G/SCM/N/372/CHL.  
3 The details of these regulations are available from the following links: Decree Law No. 3,529: 
https://www.bcn.cl/leychile/navegar/imprimir?idNo rma=7162&idVersion=2020 -03-01; Decree having Force of 
Law No. 3: https://www.bcn.cl/leychile/navegar?idNorma=188368 . G/SCM/Q2/CHL/32  
- 2 - 
  This new institution, formed as a decentralized public service, has its own legal status and assets . It 
is under the supervision of the President of the Republic through the Ministry of the Economy, 
Development and Tourism. Its mission is to encourage and promote the development of the 
small -scale fisheries and aquaculture sector by coordinating forms of inter -agency cooperation and 
by providing technical support to the sector and to those who benefit from the sector in order to 
strength en productive or commercial capacities in a way that helps small -scale fishing ports and 
related sectors to develop their natural, cultural and economic heritage in a harmonious and 
comprehensive manner.  
 
Question 3  
 
Similarly as noted above, how is "small -scale fishing" defined for the purposes of 
benefitting from this subsidy?  
 
Reply  
 
The term  "small -scale fishing " is defined in the General Law on Fisheries and Aquaculture (LGPA) 
and in general terms refers to  "extractive fishing activity carried out by natural persons who 
personally, directly and regularly work as small -scale fishers registered in the Small -Scale Fishing 
Registry, whether or not with the use of a small -scale fishing vessel " (Article 2.28 of the LGPA ). 
 
It also distinguishe s between several categories of small -scale fishers, each of which is regulated in 
detail in the LGPA and its supplementary regulations.  
 
Question 4  
 
Are there conditionalities related to receipt of subsidies under this program?  
 
Reply  
 
Access to the benef its offered by the Institute is subject to certain requirements or positive 
conditionalities, namely, compliance with current regulations and prior registration in the 
corresponding public registries (the National Fisheries Service 's Small -Scale Fishing Re gistry). 
Article  11 of Law No. 21 .069 indicates that the benefits of the actions undertaken and services 
provided by INDESPA are restricted to:  
 
(a) small-scale fishers currently registered in the National Fisheries Service 's Small -Scale 
Fishing Registry;  
(b) small-scale aquaculture farmers who, in accordance with the law, are officially 
registered in the registry that will be operated by the National Fisheries Service;  
(c) organizations and legal entities formed exclusively of legally established small -scale 
fishers a nd aquaculture farmers . Small -scale fishers and aquaculture farmers must be 
registered in the Small -Scale Fishing Registry and the Small -Scale Aquaculture Registry, 
respectively.  
To access the benefits offered by INDESPA, small -scale fishers and aquacultur e farmers, whether 
applying in a personal capacity or as part of an organization or legal entity, must comply with the 
requirements, criteria and procedures set out in the terms and conditions of the corresponding 
tendering procedure. The amount awarded sh all be determined based on the type of project, the 
category and economic capacity of the project or the value of the assets used to undertake the 
activity.  
 
Article 13 of Law No. 21 .069 sets out the negative conditionalities that result in the non -admissi bility 
of benefits. These conditionalities are related to the exercise of illegal, unreported and unregulated 
(IUU) fishing.  
 G/SCM/Q2/CHL/32  
- 3 - 
  Question 5  
 
What is the "physical infrastructure" for small -scale fishing?  
 
The notification notes that 31 % of expenditure relates to fleet modernization, efficiency 
and safety.  
 
Reply  
 
Infrastructure has traditionally been understood to refer to major works on the shoreline, which are 
executed by the Directorate of Port Works (DOP)  of the Ministry of Public Wo rks. These major works 
include, most notably, quays, docks, buildings, cranes and travel lifts.  
 
Notwithstanding the above, development projects for smaller infrastructure are currently financed 
by INDESPA, despite being primarily the responsibility of a nother state body (the DOP). Such 
projects support and promote the development of small -scale fisheries and aquaculture, such as 
desalination plants, processing rooms, cafeterias, storage facilities and, more generally, additional 
infrastructure to improve a nd develop small -scale fishing ports and related sectors in a harmonious 
and comprehensive manner.  
 
In addition, given the requirement for coordination and a unified approach among the various public 
services, Article 3(d) of Law No. 21 .069 stipulates that  one of the roles of INDESPA is to "develop 
infrastructure projects for small -scale fisheries and aquaculture, which shall be implemented 
preferably through agreements with the relevant state administration bodies ". 
 
With regard to the fleet, INDESPA has d eveloped and implemented public programmes and open 
tendering procedures at the national and regional level for the maintenance, repair and replacement 
of small -scale fishing vessels. It is important to note that INDESPA 's programmes and tendering 
procedures for replacing vessels applies only for claims that are duly accredited by the competent 
authorities (the Maritime Authority). Boats may only be replaced by one with similar characteristics 
(length and beam), thus ensuri ng that, under the measures taken to protect the fishing effort, 
increases in the capacity or size of the boats are not authorized.  
 
Question 6  
 
Where the subsidy is provided towards modernisation of fishing vessels, is the subsidy 
contingent on increased fishing capacity?  
 
Reply  
 
As noted above, the payment of non -repayable contributions to repair, improve or replace small -
scale fishing vessels is conditional on the capacity and intensity of small -scale fishing operations not 
being increased. INDESPA 's programmes and tendering procedures therefore always specifically aim 
to uphold the requirement for bidders not to increase their fishing effort or capacity. This focus is on 
safeguarding integrity and safety in the fleet and among seafarers. If there is any suspicion that 
there has been an increase in the fishing effort that might result in some areas or fishing resources 
being overfished, INDESPA directly consults the official information provided by the Undersecretariat 
of Fisheries and Aquaculture (SUBPESC A) so that it can report on the matter.  
 
Question 7  
 
Is there a conditionality linked to fishing effort or fisheries management?  
 
Reply  
 
As outlined previously, INDESPA 's institutional mission is not only to help to improve the productive 
or commercial capacity of small -scale fisheries and aquaculture, but also to "encourage and support 
the sector's comprehensive development in a way that takes into account the sustainability of 
hydrobiological resources ". 
 
The sustainability of small -scale fisheries and aquaculture is therefore an essential mandate and 
objective for the Institute.  G/SCM/Q2/CHL/32  
- 4 - 
   
The overarching aim of the programmes and tendering procedures designed and implemented by 
INDESPA is to strengthen the management  of small -scale fisheries and aquaculture and foster its 
development in a way that is better, harmonious and comprehensive.  
 
In addition, we would like to reiterate that, in designing and implementing its development 
programmes and tendering procedures, whether to increase diversification or improve productive or 
commercial capacity, INDESPA seeks to avoid increasing the fishing  effort or the overexploitation of 
hydrobiological resources. The Institute focuses primarily on promoting and developing, in a way 
that is comprehensive, harmonious and sustainable, the various productive activities and other 
activities related to the har vesting of aquatic species, such as catering, tourism and support for the 
management or development of small -scale aquaculture.  
 
__________