G/SCM/Q2/BRA/50  
 
4 May 2018 
(18-2770) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
BRAZIL'S ANSWER S TO QUESTIONS1 POSED BY THE NEW ZEALAND REGARDIN G 
THE NEW AND FULL  NOTIFICATION OF BRAZ IL2 
The following communication, dated 30 April 2018, is being circulated at the request of the 
Delegation of Brazil . 
 
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Brazil thanks New Zealand for its questions regarding Brazilian fisheries subsidy programmes and 
presents the following answers:  
Question 1  
Questions on the "Diesel Oil Pr ice Equalization Scheme " 
Given international concerns with fossil fuel and fishery subsidies, from both 
environmental and trade perspectives, we ask that Brazil provide further background on 
the scheme: why is the rebate needed; what types of entities rece ive it (are they small 
or large scale operations); and is Brazil planning on phasing out this programme?  
Reply :  
The objective of the Program, established by Federal Law No. 9.445, of 14 March 1997, is to level 
the playing field between national and foreig n fishing vessels. Diesel oil expenditures represents 
the main cost of the fishing sector. Given the difference between the international and national 
diesel oil price, the Program seeks to promote equitable conditions of competition within the 
sector.  
According to the legal framework of the Program, both small and large scale fishing vess els can 
receive the benefit. In order to qualify for the Program and receive the reimbursements, the 
beneficiaries may be represented by a federation or a community of fishermen, a fishing 
cooperative, a fishermen’s or shipowners' union or an association of shipowners or fishermen.  
The Secretariat of Aquaculture and Fisheries of Brazil is currently working on the review of the 
Program, with the aim to improve the necessary controls. There are no plans to phase out the 
Program, which is considered an important and legitimate policy for the fishing sector in Brazil.  
Question 2  
Questions on the "Programme for Vessel Fleet Enlargement and Modernization " 
New Zealand notes that there was no funding provided for the years in question and 
there is no scheduled date for reactivation of the programme. When was funding last 
provided and why has funding not been provided during the reporting period?  
 
                                                
1 G/SCM/Q2/BRA/49.  
2 G/SCM/N/284/BRA . G/SCM/Q2/BRA/50  
 
- 2 - 
 
  Reply : 
The Program for Vessel Fleet Enlargement and Modernization - PROFROTA PESQUEIRA was created 
by Law no. 10.849, dated 23 March 2004, and ame nded by Law No. 12.712 of 30 August 2012. 
As stated in Brazil’s 2015 NFN, the objectives of the program are: construction, acquisition and 
improvements of fishing vessels in order to enhance the ocean fishing fleet, taking into 
consideration environmental criteria of sustainability (including management of fishing effort);  
replacement of coastal and continental fleet fishing vessels with the objective to renew them, 
taking into consideration environmental criteria of sustainability (including management of  fishing 
effort); modernization, conversion, equipping and adaptation of fishing vessels, to enhance the 
management control on fishing effort, taking into consideration environmental criteria of 
sustainability.  
 
The implementation of this Program, however , has faced some challenges, which eventually 
created obstacles for interested parties to have access to the credit available. By 2015, the 
Program was in the process of being restructured in order to adapt to the reality of the fishing 
industry. The compe tent areas of the then Ministry of Fisheries and Aquaculture (MPA) were 
working in the revision of the existing laws and regulations and expected that a revamped 
Program would be operational in 2016. Institutional changes in the MPA since then, however, ha ve 
delayed this process.  
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