TN/RL/GEN/181  
 
20 October 2016  
(16-5695) Page: 1/4 
Negotiating Group on Rules   Original: English  
 
 ADVANCING T OWARD A MULTILATERAL  OUTCOME ON  
FISHERIES SUBSIDIES IN THE WTO  
EUROPEAN UNION 
 
The following communication, dated 18 October 2016, is being circulated a t the request of the 
delegation  of the European Union . 
 
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The global trading community has long attempted to develop new disciplines regarding fisheries 
subsidies. These efforts have so far not led to any outcomes despite the interest and dedication of 
multiple WTO Members. It is perplexing that no progress has been made until now even though 
the situation surrounding global fisheries is alarming.  
Fisheries subsidies, similarly to other types of subsidies, can only effectively be addressed through 
a multilateral agreement covering all WTO Members. The fact that the sustainability o f global 
fisheries is at stake, further reinforces the need for multilateral action.  
The 2030 Agenda for Sustainable Development agreed by the global community and notably the 
UN Sustainable Development Goal 14.6 sets out the objective to prohibit by 2020 certain forms of 
fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that 
contribute to illegal, unreported and unregulated fishing and refrain from introducing new such 
subsidies. SDG 14.6 further recognises that appr opriate and effective special and differential 
treatment for developing and least developed countries should be an integral part of the World 
Trade Organisation fisheries subsidies negotiation.  
It is now necessary to start defining the possible disciplines  and to engage in text -based 
negotiations. In order to be efficient it is necessary to define the types of subsidies that are 
harmful and accept that the effect of policies on the sustainability of fish stocks is not entirely 
captured by an overfishing ind icator.  
Against this background, this submission sets out in more detail the kind of subsidies that are 
harmful from a commercial and environmental point of view and therefore should be eliminated or 
prevented from being granted in the future. For the purp ose of this submission the issue of 
fisheries subsidies comprises four main components:  
i) prohibited subsidies linked to overcapacity;  
ii) prohibited subsidies linked to illegal, unreported and unregulated (IUU) -fishing;  
iii) transparency;  
iv) special -differential treatment (SDT).  
In order to build on the existing consensus, this submission acknowledges the principles 
established in the SDG 14.6 while identifying in a factual manner the particular types of subsidies 
that contribute to those effect s. 
The su bmission proposes a ban on capacity increasing subsidies but foresees special and 
differential treatment that would allow developing and least developed countries to derogate from 
such a ban under certain conditions . The proposed approach aims to go as far  as possible in TN/RL/GEN/181  
 
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  prohibiting capacity -enhancing subsidies which lead to overcapacity and overfishing, and at the 
same time defines a clear and transparent framework based on international law for special and 
differential treatment, recognising that fishing activities are a traditional and economically 
important activity for multiple communities. This would help contribute to creating a level playing 
field for operators.  
The submission also proposes a prohibition of subsidies that contribute to IUU fishing, w hich would 
apply to operators whose vessels are included in the subsidising country's IUU -vessel list and/or 
that of a Regional Fisheries Management Organisations (RFMOs).  
Finally, transparency needs to be an essential element of any outcome on fisheries s ubsidies. 
This submission proposes a notification requirement for information that is strictly necessary and 
relevant, while not being overly burdensome for WTO Members.  
In view of the global commitment made in SDG 14.6 to advance rapidly to discipline ce rtain 
fisheries subsidies, immediate efforts are needed in the WTO to restart negotiations with a view to 
preparing an outcome for the 11th WTO Ministerial Conference that will be held in Buenos Aires 
in 2017.  
In pursuance of this objective, the following draft captures the essential elements of a possible 
future agreement on fisheries subsidies.  
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Proposal for WTO disciplines on fisheries subsidies  
 
Acknowledging the commitments established under the 2030 Agenda for Sustainable Development 
and notably UN  Sustainable Development Goal 14 on the conservation and sustainable use of 
oceans, seas and marine resources for sustainable development,  
 
Acknowledging UN Sustainable Development Goal 14 target 6 which sets out that the signatories 
of the 2030 Agenda for  Sustainable Development should, by 2020 prohibit certain forms of 
fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that 
contribute to illegal, unreported and unregulated fishing and refrain from introducing new suc h 
subsidies,  
 
Recognising that appropriate and effective special and differential treatment for developing and 
least developed countries should be an integral part of the World Trade Organisation fisheries 
subsidies negotiation,  
 
Recognising that overcapa city contributes to overfishing and constitutes a serious threat to the 
conservation and sustainable exploitation of living marine resources,  
 
The Parties agree as follows:  
 
Article 1  
 
1.1. The Parties shall not grant or maintain any of the following subsi dies(1): 
 
(a) subsidies that increase the marine fishing(2) capacity of a fishing vessel(3) or support 
the acquisition of equipment that increases the ability of a fishing vessel to find fish;  
 
(b) subsidies that support the construction of fishing vessels  or the importation of fishing 
vessels; and  
 
(c)  subsidies for the transfer of fishing vessels to other countries including through the 
creation of joint ventures  with partners of those countries.  
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  Article 2  
 
2.1. A Party shall not grant or maintain any subsidy benefitting an operator(4) if its fishing vessel 
or, in case it operates more than one fishing vessel, any of its fishing vessels is included in the IUU 
fishing vessel list of that Party or of a Regional Fisheries Management Organisation (RFMO).  
 
Article 3  
 
3.1. The Parties shall notify, in accordance with the provisions of Article XVI:1 of GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, all kind of subsidies that 
support, directly or indirectly, marine fishing ac tivity.  
 
3.2. In addition to the information set out in Article 25.3 of the Agreement on Subsidies and 
Countervailing Measures the following must be included in the notification:  
 
(a) programme name;  
 
(b) legal basis and granting authority for the program me; 
 
(c) level of support provided; and  
 
(d) type or kind of marine fishing activity supported by the programme.  
 
 
Article 4  
 
4.1. Article 1 does not apply to subsidies granted or maintained by developing and least developed 
countries for fishing vessels of less than 10 meters which are used for subsistence fishing(5). 
 
4.2. Developing and least developed countries may grant or maintain subsidies referred to under 
Article 1 if the following conditions are met:  
 
(a) the stock or stocks targeted by the fishing vessel that a Party intends to subsidise 
must not be recognised  as overfished by the national authorities of the Party in the 
waters under the sovereignty and jurisdiction of which the fishing takes place, or by 
the relevant Regional Fisheries Managemen t Organisations; and  
 
(b) the targeted stock is managed on the basis of the best available science, consistent 
with the conservation and cooperation obligations under the relevant international 
law(6), as reflected in UNCLOS, conservation and management me asures of competent 
RFMOs, and generally accepted standards for the conservation and management of 
fisheries resources; and  
 
(c) the subsidising Party presents a management plan(7) for the fleet segment it intends 
to subsidise demonstrating  that the subsid ies will not contribute to overfishing.  
 
4.3. The information referred to in Article 4.2 shall be notified to the WTO Secretariat. Developing 
countries and least developed countries granting or maintaining subsidies referred to in Article 1 
for fishing ves sels referred in Article 4.1 shall notify this to the WTO Secretariat.  
 
 
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(1) This Agreement applies to subsidies within the meaning of Article 1.1 of the SCM Agreement 
that are spec ific in accordance with the provisions of Article 2 of that Agreement. A subsidy shall 
be attributable to the Party granting it, regardless of the flag of the fishing vessel benefitting from 
the subsidy. This Agreement does not apply to subsidies for aquac ulture and to fuel de -taxation 
schemes, or to subsidies compensating for damage caused by natural disasters.   TN/RL/GEN/181  
 
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  (2) For the purpose of this Agreement, the term "fishing" means searching for, attracting, locating, 
catching, taking and processing fish on boar d, transhipping or transferring or landing fish or any 
activity which can reasonably be expected to result in these activities . 
 
(3) For the purpose of this Agreement, the term "fishing vessel" refers to any vessel, ship or other 
type of boat used for, equ ipped to be used for, or intended to be used for commercial fishing or 
fishing related activities . 
 
(4) For the purpose of this Article, an operator includes any person involved in the operation, 
management or ownership of a fishing vessel.  
 
(5) The term " subsistence fishing" refers to fishing activities undertaken by an individual 
household for consumption by the members of that household and kin of the fishers as opposed to 
fishing activities undertaken for commercial purposes. Nevertheless, part of the f ish caught can be 
sold or exchanged for other goods or services.  
 
(6) Relevant international law includes, amongst others, the United Nations Convention on the Law 
of the Sea (UNCLOS), the UN Agreement for the Implementation of the Provisions of UNCLOS 
relating to Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish 
Stocks, the FAO Agreement to promote Compliance with International Conservation and 
Management Measures by Fishing vessels on the High Seas, the FAO Agreement on Port State 
Measures to Prevent, Deter and Eliminate IUU Fishing, and the FAO Code of Conduct for 
Responsible Fisheries.  
 
(7) The management measures contained in the plan should aim at ensuring the sustainable 
exploitation of the stock. They shall refer to the stocks, fishery and area to which it applies, 
quantify projected fishing mortality rates, indicate provisions on fishing vessel monitoring and 
systems for reporting data and catch in sufficient detail.  
 
 
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