TN/RL/GEN/189  
 
6 June  2017 
(17-2986) Page: 1/5 
Negotiating Group on Rules  Original: English  
 
PROPOSED DISCIPLINES  ON PROHIBITIONS AND SPECIAL AND DIFFEREN TIAL  
TREATMENT FOR FISHER IES SUBSIDIES  
Proposal from Indonesia  
The following communication, dated 5 June  2017, is being circulated at the request of the 
Delegation of Indonesia .   
 
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Introduction  
 
1. The global trading community has long strived to develop regulations concerning fisheries 
subsidies to promote the sustainability of global fisheries. These efforts have yet to make any 
progresses yet, despite the alarming situation of gl obal fisheries where, according to the FAO, the 
share of fish stocks within biologically sustainable level decreased from 90 % in 1974 to 68.6 % in 
2013.1 The challenges o f fisheries subsidies can only be addressed effectively through a 
multilateral agreemen t covering all WTO Members. Therefore, a multilateral action is highly indeed 
needed.  
 
2. Fisheries are a pivotal source of livelihood, contributing directly to economic growth, food 
and nutrition security, export revenue , added value opportunity, and poverty  eradication. 
However, overfishing has undermined the crucial role of fisheries . The situation has resulted in the 
depletion of stocks, with 31.4% of fish stocks being overfished in 2013 .2 The main contributors to 
overfishing are the enhanced capacity of f ishing vessels due to subsidies and IUU fishing.  
 
3. IUU fishing has great detrimental effect s not only on the economy but also on the soci al 
aspect. IUU fishing also contributes to transnational organized crimes, such as human trafficking, 
drugs and weapons smuggling, as well as forced labor and slavery in the fishing industry. 
Considering it as a grave matter, Indonesia has undertaken efforts to combat IUU fishing as a 
national priority  as well as continued to promote IUU fishing to be widely viewed and disc ussed as 
a transnational organized crime in international fora.  
 
4. The WTO Ministerial Conference in Doha in 2001 mandated WTO Members to clarify and 
improve disciplines regarding fisheries subsidies . In the Hong Kong Ministerial Declaration 2005, 
WTO Member s agreed to  further strengthen WTO fisheries subsidies rules, including prohibition of 
certain forms of subsidies which contribute to overcapacity and overfishing taking into account the 
need for special and differential treatment (S&D) for developing coun tries and LDCs as an integral 
part of the negotiation.  
 
5. In addition to WTO mandates, the commitments established under the 2030 Agenda for 
Sustainable Development Goal 14 Target 6 sets out that signatories should by 2020 prohibit 
certain forms of fisheries  subsidies that contribute to overcapacity and overfishing, eliminate 
subsidies that contribute to IUU fishing, and refrain from introducing new such subsidies. It is also 
recognized that appropriate and effective S&D for developing countries and LDCs shou ld remain an 
integral part of negotiation.  
 
                                                
1 See FAO State of World Fisheries and A quaculture (SOFIA) COFI/2016/2.  
2 Ibid. TN/RL/GEN/189  
 
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  6. Indonesia is an archipelagic state with more than 70% of its territory covered in water and 
heavily dependent on its extensive coastal regions and oceans for the livelihood of its people. 
Hence, it is important f or Indonesia to convey its position regarding fisheries subsidies. Indonesia 
supports disciplines relating to fisheries subsidies, especially certain forms of fisheries subsidies 
that affect overfishing and overcapacity, and to eliminate subsidies that con tribute to IUU fishing, 
in accordance with the SDG 14.6.  
 
7. Indonesia is of the view that arrangements regarding fisheries subsidies have to take into 
account the lives of the artisanal, traditional, and small -scale fisheries, particularly in developing 
countries and LDCs. There is still a signific ant number of people who depend  on small -scale 
fisheries, whose lives are below the poverty line and rely on small vessels for their subsistence. 
Therefore, this proposal is an effort to outline disciplines on fish eries subsidies that would be 
suitable for the current state of global fisheries.  
 
8. Developing countries, including Indonesia with its archipelagic status, and LDCs should have 
greatly benefitted from their fisheries resources. However, in the last few year s, Indonesia, in 
particular, suffered economic losses due to IUU fishing practices. This is reflected, among others, 
by the decreasing number of fishermen, which amounted to 45% within a decade, from 1.6 million 
fishermen in 2003 to 868 ,000 fishermen in 20 13.  
 
9. The majority of coastal communities are artisanal fisheries, who have been affected by IUU 
fishing. They have to struggle for their survival by fishing farther from the shore, in need of more 
fuel, fewer catches, and smaller fishes. Being aware of th is situation, the Government of the 
Republic of Indonesia is determined to revitalize the ocean as an economic driver through fisheries 
policy reform. Therefore, an initial step taken to ensure is by eradicating IUU fishing through 
deterrent measures. In a ddition, the Government of the Republic of Indonesia enacted several 
regulations, inter alia , prohibition of destructive fishing gear, minimum size of captured fish, as 
well as formulation of fisheries management plan for 11 Fisheries Management Area and h arvest 
strategy.   
 
10. Implementation of the Indonesia's fisheries policy reform in the last two years has made 
significant impacts on increasing the fish stock in adjacent international waters.  
 
11. This proposal is intended to con vey Indonesia’s view on the ele ments of prohibitions and 
Special and Differential Treatment (S&D) in the fisheries subsidies and to follow up Indonesia's 
Proposal on Fisheries Subsidies (TN/RL/GEN/150/Rev.2).  
 
12. Indonesia takes note and  appreciates the proposals submitted by the European Union 
(TN/RL/GEN/181), the ACP Group (TN/RL/GEN/182), Argentina, Colombia, Costa Rica, Panama, 
Peru, and Uruguay (TN/RL/GEN/183 and TN/RL/GEN/183 /Corr.1 ), the LDC Group 
(TN/RL/GEN/184), and Iceland, New Zealand, and Pakistan (TN/RL/GEN/186). This proposal was 
drafted to reflect the views of Indonesia as well as other interested members. The proposal is 
attached. Indonesia’s proposal is expected to serve as a basis for discussion to address fisheries 
subsidies.  TN/RL/GEN/189  
 
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Attachment  
 
PROPOSAL DISCIPLINES AND SPECIAL AND DIFFERENTIAL TREATMENT FOR 
FISHERIES SUBSIDIES  
 
Article 1  
Definition and Coverage  
 
1.1 The Discipline provides specific provisions regarding fisheries subsidies and it is an integral 
part of the Agreement on Subsidies and Countervailing Measures (ASCM).  
 
1.2 A subsidy, as used in this Discipline, is a subsidy within the meaning of Paragraph 1 of 
Article 1 of the ASCM.  A subsidy subject to this proposal must b e specific, pursuant to 
Article  2 of the ASCM.   
 
1.3 The Discipline on fisheries subsidies shall not apply to inland fisheries3 or to aquaculture .4 
 
1.4 The Discipline on fisheries subsidies should aim to prohibit certain forms of fisheries 
subsidies which contribute to overcapacity and overfishing, and eliminate subsidies to IUU 
fishing.  
 
1.5 Fisheries subsidies shal l encompass any subsidy programmes and/or disbursements made 
under such programmes.  
 
Article 2  
Prohibition  
 
2.1 Members shall not grant the following types of subsidies:  
a. subsidies granted, in law or in fact, whether solely or as one of several other conditions , 
for the purpose of modernization, renovation, repair or upgrading of existing fishing 
vessels, including engine or gear acquisition, any technical or electronic equipment5 on-
board the vessel, and any other significant capital inputs to fishing;  
b. subsidie s granted, in law or in fact, whether solely or as one of several other conditions, 
for the purpose of fixed or variable operational costs of fishing vessels and fishing 
activities, including on -board processing;  
c. subsidies granted, in law or in fact, wheth er solely or as one of several other conditions, 
relating to illegal, unreported, and unregulated fishing6, as well as to any fishing vessels 
flying "flags of convenience"; and  
d. subsidies to capital and operating costs which contribute to overcapacity and overfishing.  
                                                
3 "Inland fisheries" are fisheries which are carried out in freshwater or estuaries of a member a nd whose 
target species are those that spend all of their life -cycle therein.   
4 "Aquaculture " is the farming of aquatic organisms, including fish, molluscs and crustaceans, provided 
that no capture fisheries is used to feed raised fish or is farmed.  
5 This comprises, inter alia , engines, fishing gear, fish -processing machinery , fish-finding technology, 
refrigerators, machines for sorting or cleaning fish, or any other equipment on -board the fishing vessel. The 
prohibition does not cover the installation o f equipment for safety or for control and enforcement purposes.  
Neither does the prohibition cover equipment fitted for the purpose of reducing environmentally harmful 
emissions.  
6 The term "illegal, un report ed, and un regulat ed fishing" shall be interpret ed in accordance with the 
definition set out in paragraph 3 of the International Plan of Action to Prevent, Deter and E liminate Illegal, 
Unreported and Unregulated Fishing of the United Nations Food and Agricultural Organization  (FAO).  TN/RL/GEN/189  
 
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  Article 3  
Special and Differential Treatment7 
 
3.1 Notwithstanding the provisions of the ASCM, a developing country member shall be allowed 
to grant or maintain fisheries subsidies to its artisanal fisheries activities.  
 
3.2 Notwithstanding the provis ions of the ASCM and Articles 2 of this proposal, a developing 
country member shall be allowed to grant or maintain subsidies to its small -scale fisheries 
for the purpose of fishing vessel construction, repair, or modernization, or gear acquisition 
or impr ovem ent, or fuel, or bait, or ice. For the purposes of this section, small -scale fisheries 
shall be defined as those that:  
 
a. are below 24 meters in length8;  and 
b. operate within the Member's Exclusive Economic Zone (EEZ).  
3.3 Fisheries subsidies meet the definit ion of Article 3.2 of this proposal contingent on a showing 
that:   
 
a. the member has a fishery management plan in place that is effectively monitored and 
adequately enforced;   
b. the fisheries do not adversely affect resources governed by the fisheries manage ment 
plan;  
c. the small -scale fishing activities will not adversely affect fishery resources of other 
members or the resources governed by relevant regional fisheries management 
organizations (RFMOs); and  
d. the member has control mechanism on fisheries subsidi es to avoid overfishing and 
overcapacity.   
3.4 Notwithstanding the provisions of the ASCM and Articles 2 of this proposal, a developing 
country member shall be allowed to grant or maintain subsidies for the purpose of fishing 
vessel construction, repair, or m odernization, or gear acquisition or improvement, or fuel, or 
bait, or ice, provided that the purpose is to exploit:  
 
a. fisheries in the member's own EEZ; or  
b. rights held by the member in high seas fishing quotas or any other rights established by 
a RFMO or a  regional fisheries management arrangement.   
3.5 Fisheries subsidies meet the definition of Article 3. 4 of this proposal contingent on a showing 
that the developing country member has:  
 
a. underexploited resources in its EEZ;  or  
b. a right to high seas fishing quo tas or extra quota in a RFMO.  
3.6 Upon the request of developing country members, and with reference to guidance provided 
by the UN Fish Stocks Agreement, developed country members shall provide technical 
assistance on mutually agreed terms and conditions to d eveloping country members to allow 
them to participate fully in any RFMO adjacent to their exclusive economic zone or 
archipelagic waters.  
 
                                                
7 Special and Differ ential Treatment (SDT)  refers to  (TN/RL/GEN/150/Rev.2) . 
8 Refers  to Harmonized definition in Conservation Management Measures (CMM) IOTC, concerning 
authorized fishing vessel, April 2016.  TN/RL/GEN/189  
 
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  3.7 Upon the request of developing country members, developed country members shall provide 
technical assistance to deve loping country members on mutually agreed terms and 
conditions to develop the capacity to initiate, implement, and enforce compliance with a 
fishery management plan in keeping with the FAO Code of Conduct on Responsible Fisheries 
and adequate to provide th e showing required by Articles 3.3, 3.4, and 3 .5 of this proposal.  
 
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