RESTRICTED  
  
TN/C/21/Rev.1  
 
5 June 2022  
(22-4276) Page: 1/7 
Trade Negotiations Committee    
 
FISHERIES SUBSIDIES  – ESTABLISHMENT OF A WTO FUNDING MECHANISM TO FINANCE  
TECHNICAL ASSISTANCE AND CAPACITY BUILDING IN SUPPORT OF  
IMPLEMENTATION OF NEW WTO FISHERIES SUBSIDIES DISCIPLINES  
COMMUNICATION FROM THE CHAIRPERSON OF THE TRADE NEGOTIATIONS COMMITTEE AND THE 
CHAIR OF THE NEGOTIATING GROUP ON RULES  
CONCEPT NOTE  
Revision  
1  PROPOSAL  
Creation of a Funding Mechanism, to be known as a "WTO Fisheries Funding Mechanism" (the Fund) 
at the WTO to support, in cooperation with other inte rnational institutions with specialized knowledge 
and expertise , the targeted implementation of new fisheries subsidies disciplines by eligible1 
developing country and least developed country (LDC) WTO Members ("Members") , and related 
capacity building . 
2  STRATEGIC CONTEXT  
On 15 July 2021, at a Ministerial -level meeting of the Trade Negotiations Committee (TNC) dedicated 
the fisheries subsidies negotiations, WTO Ministers confirmed their commitment to conclude these 
negotiations as soon as possible ahead of the 12th WTO Ministerial Conference (MC12), and to use 
the then -current negotiating text as the basis for the final text -based phase of the negotiations.  At 
that meeting as in other contexts, a number of developing  country and LDC Members have indicated 
that because of their capacity constraints, they would require Technical Assistance and Capacity 
Building (TACB) to be able to implement the new disciplines, and also to derive benefits from them. 
(See, e.g., documen t JOB/TNC/95, para. 1.10.) This demand is coming at a critical time when many 
such Members are under economic stress as the COVID -19 pandemic and other ongoing crises have 
caused a contraction of their economies.  
The successful implementation of the fishe ries subsidies disciplines by all WTO members would 
constitute a win -win for trade, development, and the environment. The productivity, health and 
sustainability of our oceans is an imperative, and an agreement on fisheries subsidies disciplines 
which woul d facilitate the achievement of this overarching purpose would create benefits for the 
whole membership, including by improving the livelihood and food security of many vulnerable 
communities. Success at these negotiations by MC12 will send a strong signal  to the international 
trade and development community on the value of the Multilateral Trading System and would help 
in rebuilding trust amongst Members.  
The negotiations on fisheries subsidies originally were launched in 2001 at the Doha Ministerial 
Conference. Members are seeking to finalize them on the basis of the evolved Ministerial Decision 
from the 2017 Buenos Aires Ministerial Conference (MC11) which incorporates the language of SDG 
Target 14.6 by calling for " agreement on comprehensive and effecti ve disciplines". Those disciplines 
shall "prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, 
and eliminate subsidies that contribute to illegal, unreported and unregulated ( IUU) fishing  
 
1 Members eligible for assistance under the Fund would be those that were least developed country 
(LDC) Members as of the date of entry into force of the Fisheries Subsidies Agreement, and other developing 
country Members availing of the SDT provisions of the Fisheries Subsidies Agreement as of that date.    TN/C/21/Rev.1  
 
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  recognizing that appropria te and effective special and differential treatment for developing country 
Members and least developed country Members should be an integral part of these negotiations".  
The successful conclusion of the negotiations and implementation of the new discipline s thus will 
make a significant contribution to the achievement of SDG 14.  
Pursuant to the negotiating mandate, Members have been working toward securing agreement on 
the basis of the evolving draft negotiating text. To fulfill the mandate, any outcome must  introduce 
effective disciplines to eliminate subsidies to IUU fishing, and to prohibit subsidies contributing to 
overcapacity and overfishing, with special and differential treatment for developing and LDC 
Members.  
To ensure the availability of assistance  to implement the new disciplines and considering the capacity 
constraints of developing  and LDC  Members, the Fund would be an integral part of the final package 
to be agreed by Members. This is currently foreseen in Article 7 of the draft negotiating text . 
3  THE NEED FOR THE FUNDING MECHANISM  – SPECIFICITIES OF THE FISHERIES 
SUBSIDIES DISCIPLINES  
The new fisheries subsidies disciplines being negotiated are unique in that, unlike the trade distortion 
focus of other WTO Agreements including the Agreement on Su bsidies and Countervailing Measures, 
they are aimed at countering the harm that subsidies can cause to the sustainability of fish stocks. 
Thus, as set forth in the current negotiating text ( document WT/MIN(21)/ W/5, the disciplines would 
require Members, wh en providing fisheries subsidies, to take into account in various ways 
information and considerations related to the sustainability of the fisheries in question.  
In particular, under the new disciplines as set forth in the draft negotiating text, Members would 
need to integrate fisheries -related elements into their subsidies policies and practices that benefit 
the fisheries sector, and this in turn will necessitate an integrated approach to technical assistance 
and capacity building related to the discipli nes. In addition to the need to integrate information 
related to fisheries sustainability into the design and operation of subsidies to this sector, such 
information also will need to be notified to the WTO, along with the information related to the 
subsid ies themselves. The generation and reporting of the fisheries -related information in turn is an 
integral element of sustainable management of fisheries resources, and a number of developing and 
LDC Members may need to build up capacity in this regard.  
In the light of these considerations, a dedicated Funding Mechanism that draws on and brings to 
bear WTO expertise in the area of subsidies, and specialized partner organizations' expertise in the 
area of fisheries, is the most efficient and effective way to provide assistance and support where it 
is needed as the new disciplines are implemented. This will ensure that the assistance provided will 
address the subsidies aspects and the fisheries aspects in a coherent way.  
It is these substantive considerations t hat distinguish the assistance to be provided in the context 
of the new fisheries subsidies disciplines from the normal WTO trade -related TACB. Those existing 
support mechanisms and programmes could not easily integrate or address the unique elements 
and s ubstantive requirements of the fisheries subsidies disciplines. The Fund thus represents a 
one-off response to a unique set of circumstances and needs. At the same time, well -regarded and 
successful aspects of existing structures and modalities for assista nce provide a good model for this 
work, while assuring accountability to Members and avoiding duplication with existing assistance.  
4  SIZE OF THE FUND AND SOURCES OF FUNDING  
The WTO Secretariat proposes that the funding mechanism target a total of around USD  20 million 
in contributions over the course of its operation, with an initial starting size amount of around 
USD 10 million , which may be replenished on a voluntary basis. As noted, the purpose of the Fund 
will be to provide TACB to support developing and  LDC Members with respect to the commitments 
they undertake under the agreement on fisheries subsidies to implement the new disciplines and 
derive benefits from them.  
The Fund is to be financed through voluntary contributions in accordance with WTO Financ ial Rules 
and Regulations (as amended from time to time).  TN/C/21/Rev.1  
 
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  5  KEY OBJECTIVES OF THE FUND AND ROLES OF THE PARTNER ORGANISATIONS  
The Fund will be used to address in a variety of ways "subsidies -related elements" and "fisheries -
related elements" relevant to the  new disciplines. The TACB to be provided also will be informed by 
concrete background information and assessment of needs of the beneficiary Members  on the basis 
of procedures and criteria to be established , taking into account existing  preparatory work a s well 
as efforts by Members and assistance  from international cooperation  so as to avoid duplication and  
to fill gaps:  
▪ "Subsidies -related elements" – role of the WTO Secretariat : Drawing on its subsidies -
related expertise, provision by the WTO Secretariat of technical assistance and overall 
coordination thereof in support of Members' efforts to bring their subsidy measures into 
conformity with WTO rules, including necessary legislative and regulatory amendments, and 
preparation and submission of  WTO notifications, as per the new treaty instrument. In this 
connection, the partner organizations also would provide input into the work supporting 
beneficiary Members' establishment of the administrative links between the agencies 
responsible for subsid ies and fisheries, respectively.  
▪ "Fisheries -related elements" – role of specialized partner organizations : Provision 
of expertise through collaboration with partner organizations with specialized fisheries 
expertise: initially the UN Food and Agriculture O rganization (FAO), the International Fund 
for Agricultural Development (IFAD), and the World Bank Group. Experts from these 
organizations would provide expertise and collaboration, including analytical, coordination 
and advisory work, to assist beneficiary  Members to strengthen the ir fisheries management . 
This work can include local and community -based management, reforms, data 
collection/monitoring, control, and surveillance, for the purpose of implement ing the 
commitments beneficiary Members have taken un der new disciplines  – in respect of 
subsidies, notification, etc.  – as well as to derive benefits from them. This would include 
support for establishing and reinforcing sustainable fisheries management systems adapted 
to the fisheries in question, which in  turn would generate and use data of the type that would 
be subject to notification under the disciplines. The assistance also would encompass the 
associated training and capacity development of fisheries management personnel of 
beneficiary Members, and si milar activities.  
It should be noted that like existing WTO TACB, the purpose of the TACB to be provided through the 
Fund will be to assist Members in implementing the new disciplines. Receipt of such TACB will have 
no legal implications in respect of a be neficiary Member's compliance with its obligations under those 
disciplines. Only Members can determine whether implementation of the disciplines is consistent 
with the obligations of the disciplines.  
6  STRUCTURE, GOVERNANCE AND ADMINISTRATIVE ARRANGEMENTS OF  THE WTO 
FUNDING MECHANISM  
6.1  Structure and governance of the Fund, partnerships with other organisations  
The TACB programme, to be financed by the Fund, would be operated by the WTO in conjunction 
with the partner organizations, e.g., FAO, IFAD and the World  Bank Group , which would bring their 
technical expertise to bear in all aspects of the operation of the Fund . These partners may also 
contribute their own funds to the technical assistance programme, or in -kind with staff resources 
and further analytical a nd advisory work as needed.  
It is envisaged that the structure and governance of the Fund and the TACB programme would use 
a model similar to that of the Standards and Trade Development Facility (STDF) but with greater 
flexibility/agility  through a lighte r administrative structure, consisting of a Fund Secretariat overseen 
and governed by a Steering Committee . The Fund Secretariat of around four staff would be housed 
at the WTO, under the direct oversight and governance of the Steering Committee , which wou ld be 
composed of technical and high -level representatives of the partner organizations; and of contributor 
and beneficiary Members, if numerous on a rotational basis.  TN/C/21/Rev.1  
 
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  To ensure that the necessary technical knowledge and expertise is brought to bear in project 
evaluation and funding activities, the Steering Committee and Fund Secretariat would include 
experts on subsidies and fisheries, from the WTO and the partner organ izations. As necessary, on 
an ad hoc basis the Steering Committee and the Fund Secretariat also could call on expertise from 
any of the partner organizations. Each partner organization would establish a mechanism to provide 
such ad hoc  advice.  
6.2  Administrati ve arrangements, operation, and operating rules of the Fund and its 
financed activities  
The money donated by WTO Members and any other contributors would be housed in and 
administered through the WTO Secretariat. The Fund Secretariat would be responsible f or the 
day-to-day management and operation of the technical assistance programme financed by the Fund. 
It would manage the financial resources of the Fund, assist Members in identifying existing 
assistance and gaps, evaluate proposals, and make recommendat ions to the Steering Committee on 
the applications for assistance as well as contracting, overseeing implementation and evaluation of 
projects, making disbursements, etc. The Steering Committee would be established to oversee the 
overall activities of the Fund's operations and finances, and would take the decisions on the specific 
activities to be funded, based on the recommendations by the Secretariat. Donations would be 
subject to a charge up to 13% for overhead , in keeping with the WTO's Financial Regula tions. It is 
anticipated that the expenditures of the Fund would be covered by donations to the Fund and the 
overhead charge.  
The Fund would be operated on the basis of an annual work plan and budget, approved by the 
Steering Committee. Assistance would be  provided in response to applications from Members , as 
described below . Members receiving assistance would be encouraged to contribute resources of their 
own, either financial or in -kind, to their projects.  
With the principal aims of ensuring that assista nce flows expeditiously to where it is needed, and at 
the same time avoiding duplication of effort and assistance from more than one source, the Fund 
Secretariat would work with beneficiary Members that seek assistance through the Fund to assess 
the existi ng state of their fisheries management as relevant under the new disciplines, including 
their fisheries data gathering and reporting capability, as well as the assistance already being 
provided from multilateral and bilateral sources – particularly in the area of fisheries management. 
Appropriate assessment tools w ould be developed , and all relevant sources w ould be consulted for 
this exercise. On the basis of  this assessment, the Fund Secretariat would work with the beneficiary 
Members to identify the substantive and financial gaps that would need to be filled for the Member 
in question to be in a position to implement the new disciplines.  
Once this evaluatio n is made, Project Preparation Support to a maximum level per project , to be 
determined by the Steering Committee once established , could be approved by the Fund Secretariat 
for the Member to formally outline and submit the project for which funding was be ing sought. The 
Steering Committee would then decide on the submitted project,  and could approve Project 
Financing Support up to a maximum level per project, also to be determined by the Steering 
Committee. Any project approved for financing from the Fund' s own resources in this way could be 
supplemented by additional funding for the project provided directly by one or more of the partner 
organizations. In this way, the Fund could potentially leverage considerably more resources than 
those in the Fund as su ch.  
Each project receiving financing from the Fund would be subject to appropriate reporting and audit 
requirements on its entirety . The Fund also would conduct end -of-project evaluations, at least on a 
sample basis, focusing on impact and lessons learned .  
The Fund itself would be subject to regular external auditing and review, and would report regularly 
on its activities [to the WTO Committee on Budget, Finance and Administration and any other 
relevant bodies of the WTO, and to similar bodies of the par tner organizations]. Periodic external 
review of the Fund's operations would be conducted in line with standard rules for WTO technical 
assistance , including the OECD Development Assistance Committee (DAC) criteria, i.e., relevance, 
coherence, effectivenes s, efficiency, impact, and sustainability. After a period to be agreed, the 
review process would consider, inter alia , the continuing necessity of maintaining the Fund.  TN/C/21/Rev.1  
 
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  All of the Fund's activities would be undertaken pursuant to operating rules to be esta blished in 
consultation with relevant partners, and which would be consistent with WTO financial rules. These 
rules would address the financial management of the Fund, as well as the evaluation of requests for 
assistance and the process for ensuring comple mentarity, and avoiding overlap, with any existing 
assistance from other sources.  
6.3  Types and sizes of projects to be funded  
As noted above, two basic categories of funding are envisaged. The first consists of Project 
Preparation Support. The second consists  of Project Financing Support for TACB activities 
themselves. The maximum levels for each category would be established by the Steering Committee 
once it is constituted and operational.  
While it is not envisaged that every request for TACB would be precede d by a Project Preparation 
phase for which funding would be sought, having this possibility will optimize the Fund's flexibility 
in addressing what will certainly be very diverse needs that the Fund will be requested to support.  
7  TECHNICAL ASSISTANCE AND CA PACITY BUILDING NEEDS  – AIMS OF TECHNICAL 
ASSISTANCE ACTIVITIES TO BE FUNDED  
As noted above, assistance provided through the Fund for the fisheries -related elements referred to 
above would be aimed at complementing and filling gaps in any existing assistan ce for fisheries 
management, monitoring, control and surveillance already being provided bilaterally and through 
international agencies, and which would be relevant to the new fisheries subsidies disciplines. Thus, 
an important element of the management of  the Fund would involve ensuring complementarity with 
any existing assistance to avoid both duplication of and gaps in effort on the ground.  
Assistance for the subsidies -related elements referred to above would be aimed at assisting 
beneficiary Members to  bring their subsidy programmes into conformity, including necessary 
legislative and regulatory amendments; and to prepare and submit the required WTO notifications. 
The WTO Secretariat's technical assistance rules and practices would apply to such assista nce, which 
would be provided by WTO Secretariat staff, and potentially external contractors, with relevant 
expertise.  
More specifically, the new disciplines under negotiation would result in a number of new WTO 
obligations for Members, involving adjustmen ts to their legislative and administrative frameworks 
and enhancement of their fisheries management policies and practices. In addition, these 
adjustments also would be needed to take advantage of the flexibilities under the disciplines. Under 
the discipli nes, the obligations where TACB would be needed are likely to be in the following three 
areas:  
a. Institutional arrangements and legislative frameworks;  
b. Creation and/or reinforcement and implementation of sustainable fisheries management 
systems, including m onitoring, control and surveillance capacities;  
c. Data collection, transparency, reporting and notification.  
Compliance with some obligations in these areas would need to be done within timeframes set forth 
in the disciplines (under the current draft text, as early as entry into force of the disciplines). This 
means that the Fund, and its TACB programme, should be established and made ready for 
deployment quickly.  
7.1  Members' institutional arrangements and legislative frameworks  
Pursuant to the current draft of  the new disciplines, and depending on the final choice of Members, 
either an existing or a new WTO body would be charged with reviewing the operation and 
implementation of the fisheries subsidies disciplines. Within a specified timeframe, each Member 
would be required to inform the relevant body of its measures in existence or taken to ensure the 
implementation and administration of the disciplines. This would include laws, regulations and/or 
administrative procedures to ensure that prohibited subsidies, i ncluding those to IUU fishing, are not TN/C/21/Rev.1  
 
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  being provided. Members also would need to inform the body of any changes to such measures 
thereafter. The body in question would conduct an annual review of the operation and 
implementation of the new legal instrumen t. 
Furthermore, also within a specified timeframe, each Member would need to provide the relevant 
body with a description of its fisheries regime in terms of its laws, regulations and administrative 
procedures relevant to the fisheries subsidies disciplines, and promptly inform the body of any 
modifications thereafter. This obligat ion could be met by providing up -to-date electronic links to 
relevant webpages setting out this information.  
Putting such institutional arrangements in place including through creation and/or reinforcement of 
the related legislative and regulatory framewor ks will be one of the main areas requiring TACB for 
developing and LDC Members.  
7.2  Sustainable fisheries management measures and systems  
The disciplines on fisheries subsidies as set out in the draft negotiating text aim to comprehensively 
address the types o f fisheries subsidies that harm sustainability , by prohibiting subsidies to IUU 
fishing;  subsidies to fishing on overfished stocks; and subsidies contributing to overcapacity and 
overfishing. To implement these disciplines , including the prohibitions and t he use of built -in 
flexibilities to provide subsidies sustainably, Members would need to have in place systems and 
measures for managing their fisheries, adapted to the specific scale and nature of the fisheries in 
question . 
In particular, Members would ne ed to have systems in place:  to prevent or stop any inadvertent 
subsidization of entities engaged in IUU fishing;  to identify overfished stocks on the basis of " best 
scientific evidence available ", and to avoid subsidizing the fishing of such stocks; to en sure that 
stocks where fisheries subsidies are provided are maintained at a "biologically sustainable level"; 
and more. Integrating sustainability considerations and criteria such as these into their internal 
processes for granting fisheries subsidies woul d require significant fisheries management -related 
TACB for developing and LDC Members, including through training of fisheries management 
personnel of beneficiary Members or institutions. Relevant elements would include vessel registration 
and records, an d monitoring, control and surveillance. Assistance also would be needed for 
development and reinforcement of internal mechanisms to link subsidization decisions to the 
sustainable fisheries elements. Having such systems in place on a sound footing would co ntribute to 
the sustainability of the fisheries in question, providing long -term economic and livelihood benefits 
including for poor populations, and would assist in the targeting of scarce government financial 
resources.  
7.3  Data collection, transparency repo rting & notification  
An integral part of the sustainable fisheries management regimes and the institutional and legislative 
requirements foreseen by the fisheries subsidies disciplines is the gathering, analysis and reporting 
of substantial fisheries -related data and information (in addition to the subsidies -related information 
that Members already are required to notify to the WTO).  
Linked to this are the provisions on “Notification and Transparency” in the draft text. The provisions 
of this Article includ e a series of new transparency and notification elements to be made to the 
responsible WTO body. Many of these elements will require reliable and systematic mechanisms for 
collecting fisheries -related data. For example, the draft notification provisions ca ll on Members to 
report on the "catch data per species in the fishery for which the subsidy is provided", and on the 
"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 Member or 
are managed by a Regional Fisheries Management Organization or Arrangement (RFMO/A) ". 
Development and/or reinforcement of data gathering capabilities, adapted to the specific scale and 
nature of the fisheries in question, thus will be a key area in which TACB programs will be needed 
to assist developing and LDC Members to fulfil these obligations through, inter alia,  building and 
enhancing the capacity of their fisheries management personnel, in p articular those working to 
gather and report the data.  TN/C/21/Rev.1  
 
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  Developing and LDC Members will also require support in meeting their reporting and transparency 
obligations to the WTO, once data collection systems are in place and functioning. In addition to the 
above-mentioned information, the draft disciplines foresee that each Member would notify the WTO 
body that administers the agreement, in writing and on an annual basis, of any list of vessels and 
operators that it has determined as having been engaged in IUU  fishing; a list of any fisheries access 
agreements in force with another government or governmental authority, and certain other 
information regarding such agreements. This will be important as the draft text envisages that to 
use the flexibilities in the  disciplines (special and differential treatment provisions and the flexibilities 
built into the disciplines), the subsidies in question and information on a Member’s fisheries regime 
would need to be notified. Establishing the institutional mechanisms and  systems that would allow 
for a certain degree of automaticity in compliance with these new transparency and notification 
obligations will require specific knowledge, which can be achieved by targeted TACB to those that 
request it.  
8  MODALITIES FOR COLLABORA TION WITH WTO PARTNER ORGANISATIONS  
This concept note is intended to provide a broad framework and starting point for discussions with 
potential contributor Members and partner organizations, as well as potential beneficiary Members, 
on the design of TACB programs in support of the implementation of the WTO’s new disciplines on 
fisheries subsidies. Any joint collaboration would imply no financial commitment by any of the 
partner organi sations involved and would depend on the availability of resources from c ontributors. 
It is envisaged that the Fund would be established, housed in, and administered by the WTO 
Secretariat working in cooperation with partner organi sations pursuant to TACB agreement(s) to be 
concluded, with a commitment by all partner organi sations to mobilize resources for the Fund. Joint 
as well as individual but coordinated activities could be undertaken by the partner organi sations, 
subject to the agreed operating rules and the availability of sufficient personnel and financial 
resources.  
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