G/SCM/Q2/BRA/45  
 
24 October 2014  
(14-6179)  Page: 1/2  
Committee on Subsidies and Countervailing Measures 
 Original: English  
 
SUBSIDIES 
REPLIES TO QUESTIONS1 POSED BY NEW ZEALAND REGARDING THE 
NEW AND FULL NOTIFICATION OF BRAZIL2 
The following communication, dated 24 October 2014, is being circulated at the request of the 
Delegation Brazil.  
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 Question 1: 
 
We welcome the reporting of Brazil's progra mmes affecting fisheries, which we see as 
operating in the context of the 2012 Ri o+20 commitment to further improve the 
transparency and reporting of existing fi sheries subsidies programmes through the 
WTO. Heads of State/Rio+20 also encouraged  States to eliminate subsidies that 
contribute to overcapacity and overfishing,  and to refrain from introducing new such 
subsidies or from extending or enhancing ex isting ones. We also view this as an 
important contribution to the Doha mandate "to clarify and improve WTO disciplines on 
fisheries subsidies".  
Diesel Oil Price Equalization Scheme 
 With regard to this programme, can Brazil:  
 Identify the fisheries affected by th e programme, by geographical area 
(e.g. territorial sea, EEZ, high seas), an d the species affected by the programme, 
e.g. both target and by catch species) 
 Clarify the current status of the programm e, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life of the 
programme? 
Reply: 
 
In order to benefit from this equalization scheme, the fishing companies or fishermen must comply with administrative procedures set by regulation by the Ministry of Fisheries and Aquaculture, 
which take into account vessel control and other administrative issues. 
 The sustainability aspect for fishermen or vessels to receive any benefit from this programme is 
not specific. However, a sustainability analysis is made on a continuous basis in order to verify if 
all the persons or vessels engaged in fishing operations are complying with all legal and normative parameters in Brazil, including sustainability standards. For the fishing effort approach, the 
programme itself is not related to any increase in fishing effort for the beneficiary vessels. 
 The Brazilian Government has in place a system of  price equalization for the maritime diesel used 
in the fisheries sector since 1997. There is no ending term for this programme. Since the main 
                                               
1 G/SCM/Q2/BRA/39. 
2 G/SCM/N/253/BRA. G/SCM/Q2/BRA/45 
 
- 2 - 
 
  objective of this programme is to equalize the price of maritime diesel paid by fishing companies 
or fishermen with the price in the international market, any budget change throughout the future life of the programme is di rectly linked to any future existing difference between the price of 
maritime diesel in Brazil and international markets, as long as the difference is within the 25% 
boundary.  
 Question 2: 
 
Programme for Vessel Fleet Enlargement and Modernization With regard to this programme, can Brazil:  
 Identify the fisheries affected by the programme, by geographical area (e.g. 
territorial sea, EEZ, high seas), and the species affected by the programme, e.g. 
both target and by catch species) 
 Clarify the current status of the programm e, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life of the 
programme? 
Also, since the notification states that  the programme takes into consideration 
environmental criteria of sust ainability (including manageme nt of fishing effort), can 
Brazil comment on the extent to which the programme provides support for the reduction of over-capacity and overfishing. 
 
Reply: 
 
This programme has been non-operational since 2008. The last disbursement took place in 2010. 
The programme is being redesigned by the Federal Government.  
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