TN/RL/W/277  
 
21 December  2023 
(23-8781) Page: 1/5 
Negotiating Group on Rules   
 
 
 
 
 
 
FISHERIES SUBSIDIES  
Draft Consolidated Chair Text  
 
 
DRAFT DISCIPLINES ON SUBSIDIES CONTRIBUTING TO OVERCAPACITY AND 
OVERFISHING, AND RELATED ELEMENTS  
 
 
 
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  TN/RL/W/277  
 
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Note: This document is without prejudice to any Members' positions or views, whether or not 
reflected herein.  
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ARTICLE A: SUBSIDIES CONTRIBUTING TO OVERCAPACITY AND OVERFISHING  
A.11 No Member shall grant or maintain subsidies to fishing or fishing related activities that 
contribute to ov ercapacity 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/costs of fuel, ice, or bait;  
(d) subsidies to costs of perso nnel, social charges, or insurance;  
(e) income support of vessels or operators or the workers they employ [except for such 
subsidies implemented for subsistence purposes during seasonal closures];  
(f) price support of fish caught;  
(g) subsidies to at -sea support; and  
(h) subsidies covering operating losses of vessels or fishing or fishing related activities . 
Before granting a subsidy, a Member shall consider the consequence of the subsidy on overcapacity 
and overfishing.  
A.1.1  (a) For a Member that is  amongst the 20 largest providers of fisheries subsidies by annual 
aggregate value as notified to the WTO pursuant to Article  C.4, a subsidy is not 
inconsistent with Article A.1 if the subsidizing Member demonstrates that measures are 
implemented that can reasonably be expected to ensure that  the stock or stocks  in the 
relevant fishery or fisheries  are at a biologically sustainable level.2 Such demonstration 
shall be made through a notification as soon as practicable and no later than three  
months after a new subsidy program comes into effect, and thereafter in the Member 's 
regular notifications of fisheries subsidies under Article 25 of the SCM Agreement, 
Article  8 of the Agreement on Fisheries , and Article C . 
 (b) For a Member not falling under Article A.1.1  (a), a subsidy is not inconsistent with 
Article  A.1 if the subsidizing Member demonstrates through its regular notifications of 
fisheries subsidies under Article 25 of the SCM Agreement, Article 8 of the Agreeme nt 
 
1 For greater clarity, Article A.1 does not apply to subsidies to the extent they regard stocks that are 
overfished.  
2 For the purpose of this paragraph, a biologically sustainable level is the level determined by a coastal 
Member or a coastal non -Member having jurisdiction over the area where the fishing or fishing related activity 
is taking place, using reference points 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. A coastal Member that is not the subsidizing Member shall not be  required to provide data to 
enable the subsidizing Member to invoke Article A.1.1.  TN/RL/W/277  
 
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  on Fisheries , and Article C that measures are implemented to maintain  the stock or 
stocks  in the relevant fishery or fisheries at a biologically sustainable level.3 
 (c) The notification s referred to in Article A.1.1 (a)  and A.1.1 (b)  shall be sufficie ntly precise 
to enable other Members to evaluate the consistency of the subsidy with the conditions 
set out in Article  A.1.1  and shall include the following:  
(i) status of the fish stocks in the fishery for which the subsidy is provided (e.g., 
overfished, maximally sustainably fished, or underfished) and the reference points 
used, and whether such stocks are shared4 with any other Member or are managed 
by an RFMO/A;  
(ii) conservation and management measures in place for the relevant fish stock;  and 
(iii) to the extent possible, information on the fleet capacity in the fishery for which 
the subsidy is provided .   
A.1.2 Any Member may, at any time, seek clarification regarding the notifications and information 
referred to in this Article. Where a Member has brought such a matter to the attention of the 
subsidizing Member or the Committee on Fisheries Subsidies referred to in Article  9 of the Agreement 
on Fisheries Subsidies, the subsidizing Member shall respond to the request as quickly as possible  
in writing and in a comprehensive manner.  
A.1.3 In the case of non -notification or a notification manifestly inconsistent with Article A.1.1, the 
prohibition under Article A.1 shall apply.  
A.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 
jurisdiction (whether solely or as one of several other conditions).5,6 
 (b)  [PLACEHOLDER: POSSIBLE FLEXIBILITY FOR SUBPARAGRAPH (a)]  
ARTICLE  B: SPECIAL AND DIFFERENTIAL TREATMENT  
B.1 The prohibition under Article A.1 shall not apply to LDC Members. A graduated LDC Member 
may grant or maintain the subsidies referred to in Article  A.1 to fishing and fishing related activities 
within its Exclusive Economic Zone ( EEZ) and in the area and for species under the competence of  
an RFMO/A through which the Member has fishing rights , 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 Countries" category.    
B.2 A developing country Member7 may grant or maintain the subsidies referred to in Article  A.1 
to fishing and fishing related activities if its share of the annual global volume of marine capture 
production does not exceed [0.8] per cent as per the most recent published FAO data as circ ulated 
by the WTO Secretariat. A Member remains exempted until its share exceeds this threshold for three 
 
3 For the purpose of this paragraph, a biologically sustainable level is the level determined by a coastal 
Member or a coastal non -Member having jurisdiction over the area where the fishing or fishing related activity 
is taking place, using reference points 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. A coastal Member that is not the subsidizing Member shall not be required to provide data to 
enable the subsidizing Member to invoke Article A.1.1.  
4 The term "shared stocks" refers to stocks that occur within the EEZs of two or more coastal Members, 
or both within the EEZ and in an area beyond and adjacent to it.  
5 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 (e.g., fishing in a nea rby 
Member's exclusive economic zone (EEZ) pursuant to traditional or historical practices or arrangements, including 
relating to migratory stocks) shall not  for that reason alone be  considered to be contingent upon, or tied to, 
such fishing or fishing r elated activities.  
6 For a Member  whose maritime zone under national jurisdiction do es not have a definitively determined 
EEZ, the limit  shall be that  provided by international law , including the law  of the sea .  
7 For greater clarity, this includes gradua ted LDC Members falling within the [0.8] per cent threshold after 
the expiry of the transition period referred to in Article B.1.  TN/RL/W/277  
 
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  consecutive years. It shall be re -included in Article B. 2 when its share of the global volume of marine 
capture  production falls back below the thresh old for three consecutive years.  
B.3 (a) Except as provided for in Article B.6, a  developing country Member not covered by  
Article B.1 or B.2 may grant or maintain the subsidies referred to in Article A.1 to fishing 
and fishing related activities within it s EEZ, and in the area and for species under the 
competence of a n RFMO/A through which the Member has fishing rights, for a maximum 
of [X] years after the entry into force of these disciplines. Thereafter , such a developing 
country Member  that would otherwise fall under Article  A.1.1(a) may instead apply 
Article A.1.1(b)  in respect of subsidies referred to in Article A.1 for a maximum of [ Y] 
years . A developing country Member intending to invoke this provision shall inform the 
Committee on Fisheries S ubsidies in writing within one year of the date of entry into 
force of these disciplines.  
 (b) Subsidies granted or maintained under subparagraph (a) shall be exempt from actions 
based on Article A.1  and Article 10 of the Agreement on Fisheries Subsidies f or a period 
of two additional years after the end of the period referred to in the first sentence of 
subparagraph  (a).  
 (c) A developing country Member to which subparagraph (b) applies may request an 
extension of the period referred to in that provision through the Committee on Fisheries 
Subsidies . The Committee shall take into account the specific circumstances of that 
Member , and shall give s ympathetic consideration to developing country Members t hat 
demonstrate concrete progress toward implementing Article  A.1.  
B.4 Except as provided for in Article B.6, a  developing country Member not covered by Article B.1 
or B.2  may grant or maintain the subsidies referred to in Article  A.1 for low income, reso urce poor 
[and][ or] livelihood fishing or fishing related activities8 up to [12][24] nautical miles, measured from 
the baselines, including archipelagic baselines . 
B.5 While applying Article B, a Member shall endeavour to ensure that its subsidies do not 
contribute to overcapacity or overfishing.  
B.6 A developing country Member engaged in fishing or fishing related activities in any area further 
than one FAO Major Fishing Area beyond the one(s) adjacent to its natural coastline shall not have 
access to Article s B.1, B.2, B.3 , and B.4 . 
ARTICLE  C: NOTIFICATION AND TRANSPARENCY  
C.1 The provisions of Article 25 of the SCM Agreement and Article 8 of the Agreement on Fisheries 
Subsidies shall apply  to these disciplines, with the additions provided for in Articles A, B and this 
Article . 
C.2 Each Member shall notify the Committee on Fisher ies Subsidies in writing on an annual basis 
of: 
(a) any vessels and operators for which the Member has information that reasonably 
indicates the use of forced labour, along with relevant information to the extent 
possible; and  
(b) a list of any agreements in force, or existing arrangements, for obtaining access to 
fisheries of another coastal Member or non -Member, and such notification shall consist 
of:  
(i) the titles of the agreements or arrangements;  
(ii) a list of their parties; and 
 
8 For greater clarity, a range of characteristics shall define "low income, resource -poor or livelihood fishing 
or fishing related activities" : [PLACEHOLDER]  TN/RL/W/277  
 
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  (iii) to the extent possible, the full text of the agreements or arrangements . 
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 this information.  
C.3 Notwithstanding Ar ticle 1 of the Agreement on Fisheries Subsidies, and to the extent possible, 
each Member shall notify the Committee on Fisheries Subsidies in writing on an annual basis of its 
fuel subsidies granted or maintained to fishing and fishing related activities t hat are not specific 
within the meaning of Article 2 of the SCM Agreement.  
C.4 Not later than 90 days from the entry into force of these disciplines, each Member shall notify  
to the Committee on Fisheries Subsidies  all information that is necessary for the  determination of 
its annual aggregate level of fisheries subsidies. Thereafter, each Member shall submit this 
information  to the Committee on Fisheries Subsidies  in its regular notification s of fisheries subsidies 
under Article 25 of the SCM Agreement, Ar ticle 8 of the Agreement on Fisheries , and this Article . 
Each Member shall submit this information through a template the content and form of which shall 
be previously agreed by Members.  
ARTICLE  D: OTHER OVERCAPACITY AND OVERFISHING PROVISIONS  
D.1 [PLACEHOLDER: POSSIBLE SUBSTANTIVE PROVISION ON NON -SPECIFIC FU EL SUBSIDIES]  
D.2 [PLACEHOLDER FOR OTHER POSSIBLE PROVISIONS]  
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