TN/RL/W/274  
 
20 November 2017  
(17-6319) Page: 1/5 
Negotiating Group on Rules   
 
 
FISHERIES SUBSIDIES  
WORKING DOCUMENTS ON  PROHIBITED SUBSIDIES  RELATING  
TO IUU FISHING AND O VERFISHED STOCKS  
COMMUNICATION FROM T HE CHAIR  
The attached working documents have emerged from the intensive work in the Negotiating Group 
on Rules at its cluster in the week of 13 – 17 November.  These two working documents relate to 
two of the proposed prohibitions on fisheries subsidies being considered in the Group, relating to 
overfished s tocks and to illegal, unreported and unregulated fishing.  
These working documents are the result of a collective effort by delegations, and represent an 
effort to develop working texts that could present with some degree of clarity the numerous 
issues, app roaches, and views before the Group in these areas. Their purpose is to facilitate 
further work of the Group, and they can be expected to continue to evolve. They are of course 
entirely without prejudice to the position of any delegation.  
These documents c over only two of the many issues before the Group. The Group will need to 
continue its efforts in all remaining areas , with a view to developing similar working texts  and 
otherwise advancing its work  on additional prohibitions such as overcapacity and capa city-
enhancing subsidies; special and differential treatment; transparency and notifications; standstill; 
preamble ; scope ; transitional provisions ; and institutional arrangements.  
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  ARTICLE 3: PROHIBITE D SUBSIDIES  
[No Member shall grant o r maintain [, in law or in fact,] any of the following subsidies within the 
meaning of Article 1.1 of the SCM  Agreement [that are specific within the meaning of Article 2 of 
that Agreement] [to vessels, operators], [fishing or fishing activities]:  
Illegal,  Unreported and Unregulated (IUU) fishing  
3.1 Subsidies [provided to] [granted to] a fishing [vessel, [regardless of the flag of the vessel 
involved,] or operator] engaged in IUU fishing,  
[ALT1:  including those]  
[ALT2:  [as] [while]]  
[identified  by,] determined by, or listed in an IUU fishing list1 of:  
a) a Member in respect of vessels flying its flag [in accordance with its law] [in accordance with 
its domestic laws, regulations and administrative procedures]. [When the flag Member and the 
subsidizing Member are not the same, the fishing vessel concerned sh all be notified to the 
subsidizing Member, and [the determination shall be] verified by the subsidizing Member [in 
accordance with its law.] [in accordance with its domestic laws, regulations and administrative 
procedures.]  
b) a subsidizing Member [in acco rdance with its domestic laws, regulations and administrative 
procedures].  
c) a Member in respect of foreign -flagged vessels found fishing in waters under its jurisdiction. In 
this case, a subsidizing Member shall, upon request by that Member [or on its ow n initiative,] 
[recognize] [take into account, as appropriate] this determination provided that the subsidizing 
Member promptly [verifies] [the determination] [determines], [in accordance with its law] 
[in accordance with its domestic laws, regulations and  administrative procedures], [and] that 
the [relevant] international law and principles of non -discrimination, due process, [including a 
procedure for appeal or review,] and transparency were respected in making that 
determination.  
ALT: a Member in respect  of foreign -flagged vessels fishing in its waters, provided that the 
subsidizing Member promptly [verifies] [determines], [in accordance with its law] 
[in accordance with its domestic laws, regulations and administrative procedures], that the 
Member follow ed fair, transparent, and non -discriminatory procedures and acted in conformity 
with [international law] in making its determination [based on positive evidence].  
d) a Regional Fisheries Management Organization [or Arrangement] [including those 
organizatio ns [or arrangements] of which Members are not Party], provided that the 
subsidizing Member promptly [investigates and] [verifies] [determines], [in accordance with its 
law] [in accordance with its domestic laws, regulations and administrative procedures], that 
the [vessel/operator] concerned has been listed [based on positive evidence] in accordance 
with the rules and procedures of that organization [or arrangement] [including a procedure for 
appeal or review] and in conformity with international law applic able to the subsidizing 
Member and those organizations [or arrangements] are in conformity with [FAO IPOA -IUU,] 
principles of non -discrimination, openness to all WTO Members, due process and transparency. 
[Provided, however, that in the case of fishing in waters under the national jurisdiction of a 
subsidizing Member, such determinations shall be made by the national authority of the 
subsidizing Member.]2 
                                                
1 For the purposes of paragraphs (a) and (b), each Member maintains the right to determine what 
constitutes such [identification,] determination, or listing of IUU fishing [based on paragraph 3 of IPOA -IUU].  
2 [For the purpose of this Agreement, Regional Fi sheries Management Organizations shall be recognized 
by the FAO before XX -XX-201X, and incorporated as Annex 1 of this Agreement.]  TN/RL/W/274  
 
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  [ALT: a Regional Fisheries Management Organization [or Arrangement] in accordance with the 
rules and pr ocedures of that organization [or arrangement] and in conformity with 
international law.] [including verification mechanisms to enable Members that are not a party 
to those organizations [or arrangements] to engage in the listing process under the rules of  
procedure] [;  and, if the subsidizing Member is not a party to a Regional Fisheries 
Management Organization [or Arrangement], provided that [it promptly verifies that] that 
organization [or arrangement] is in conformity with [FAO IPOA -IUU,] principles of 
non-discrimination, openness to all WTO Members, due process and transparency.]  
e) [the FAO [subject to its recognition by the SCM committee.]]]  
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  OVERFISHED DISCIPLIN E (TO REPLACE 3.6 -3.9) 
3.6. Subsidies for fishing [and fishing related activities] [outsi de the territorial sea] [of] / [that 
negatively affect] [targeted] fish stocks that are in an overfished condition.  
[The negative effect of such subsidies shall be determined] [by the subsidizing Member] based on 
the [best] scientific evidence [available t o] [recognized by] [that Member.]]  
[A fish stock is overfished if  
[A it has not been assessed or has been assessed to be in an overfished condition.]  
[B ALT1:   it is recognized as such by the Member in whose [national jurisdiction] [EEZ] the 
fishing is ta king place or by a Regional Fisheries Management Organization [or 
Arrangement] based on [best] scientific evidence available to [and recognized by] them.]  
[B ALT2: the stock is at such a low level that mortality from fishing needs to be [restricted] 
to all ow the stock to rebuild to a level that produces maximum sustainable yield or 
[alternative] reference points based on the [best] scientific evidence [available]. Fish stocks 
that are recognized as overfished by the national jurisdiction where the fishing i s taking 
place or by a relevant fisheries management organization [or arrangement] shall also be 
considered overfished.]  
[B ALT2 bis: the stock is at such a low level that mortality from fishing needs to be 
[restricted] to allow the stock to rebuild to a le vel that produces maximum sustainable yield 
or [alternative] reference points based on the [best] scientific evidence [available] and with 
no effective management plan in place. Fish stocks that are recognized as overfished by the 
national jurisdiction whe re the fishing is taking place or by a relevant fisheries management 
organization [or arrangement] shall be considered overfished.]  
[B ALT3: the stock is at such a low level that mortality from fishing needs to be [restricted] 
to allow the stock to rebuild  to a level that produces maximum sustainable yield or 
[alternative] reference points based on the [best] scientific evidence available [to the 
Member within its jurisdiction or to the relevant RFMO [or Arrangement]], [as recognized by 
the national jurisdi ction where the fishing is taking place or by the relevant fisheries 
management organization [or  arrangement.]]  
[The determination by an RFMO [or Arrangement], shall be made after examination of the 
objections, if any, of the Member concerned].  
In the cas es of straddling and highly migratory fish stocks, shared among Members, the evaluation 
related to the fish stocks in the fishery for which the subsidy is provided shall be made pursuant 
cooperation of the Members involved.]  
C ALT 1 [In the absence of suff icient data to make such a determination, the stock shall be 
presumed to be in an overfished condition.]  
C ALT 2 [In the absence of scientific evidence to make such a determination due to a lack of 
capacity, this paragraph does not apply until the Member acquires the capacity to conduct stock 
assessments.]  
3.7. [ Subsidies [to vessels or operators fishing] [in connection with fishing and fishing related 
activities]  in areas beyond national jurisdictions which are not aimed to fulfill  a quota or a right 
established by a RFMO [or Arrangement].]  
3.7. ALT  [Subsidies [to vessels or operators fishing] [in connection with fishing and fishing related 
activities]  in areas beyond national jurisdictions which are not aimed to fulfill a quota or a right 
established by a RFMO [or Arrangement] and which negatively affect targeted fish stocks that are 
in an overfished condition].  TN/RL/W/274  
 
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  3.8. [Illustrative list of subsidies that do not negatively affect targeted fish stocks that are in an 
overfished conditio n: 
(a) subsidies that improve fishery management systems and [thus] promote sustainable 
fisheries including subsidies for research and development activities;  
(b) subsidies that improve hygiene, health, safety and working conditions for fishers;  
(c) subsid ies aiming at improving the concerned Member's capacity to fight against IUU fishing;  
(d) subsidies for [permanent] cessation of fishing activities provided that the fishers concerned 
effectively cease all fishing activities within a reasonable timeframe a fter receiving the 
subsidy concerned.]  
(e) [subsidy programmes of Members aimed to fulfill a quota or a right established by a RFMO]  
 
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