TN/RL/GEN/181/Rev.1  
 
6 July 2017  
(17-3615) Page: 1/4 
Negotiating Group on Rules  Original: English  
 
ADVANCING TOWARD A M ULTILATERAL OUTCOME ON 
FISHERIES SUBSIDIES IN THE WTO  
EUROPEAN UNION 
Revision  
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 f or 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 s uch subsidies,  
 
Acknowledging UN Sustainable Development Goal 14 target 4 which sets out that the 
signatories of the 2030 Agenda for Sustainable Development should, by 2020 effectively 
regulate harvesting and end overfishing, illegal, unreported and unreg ulated fishing and 
destructive fishing practices and implement science -based management plans, in order to 
restore fish stocks in the shortest time feasible, at least to levels that can produce 
maximum sustainable yield as determined by their biological ch aracteristics,  
 
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 overcap acity contributes to overfishing and constitutes a serious threat to the 
conservation and sustainable exploitation of living marine resources,  
 
Recognizing that the share of overfished stocks increased from 10% in 1974 to over 31% in 
2013 and that this sha re should be decreased,  
 
The Parties agree as follows:  
 
Article 1  
 
1.1. The Parties shall not grant or maintain any of the following subsidies(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 vess els to other countries including through the creation of 
joint ventures with partners of those countries.  TN/RL/GEN/181/Rev.1  
 
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  1.2. The Parties may grant or maintain subsidies set out in Article 1.1 during a transitional 
period of [X] years following the entry into force of th is Agreement, provided that the 
vessel benefitting from the subsidy does not target fish stocks that are in an overfished 
condition(3bis). 
 
Article 1bis  
 
1bis.1. In addition to the subsidies prohibited under Article 1.1, the Parties shall not grant 
or main tain any subsidies for fishing outside the territorial sea that negatively affect 
targeted fish stocks that are in an overfished condition(3bis). 
 
1bis.2. Annex I sets out an illustrative list of subsidies that do not negatively affect targeted 
fish stocks  that are in an overfished condition.  
 
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(4bis) vessel list of that Party or of a Regional Fisheries Management Organisation or 
Arrangement (RFMO /A). 
 
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 activity.  
 
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 programme;  
 
(c) le vel of support provided; and  
 
(d) type or kind of marine fishing activity supported by the programme ; and  
 
(e) in the case of developing and least developed countries, for any of the subsidies 
under Article 1.1, information whether the Party concerned makes use of the flexibilities 
provided for in Articles 4.1 and 4.2.  
 
3.3. The Parties shall also endeavour to include the following in the notification:  
 
(a) the status of the fish stock targeted by the vessel benefitting from the subsidy 
(for example, ov erexploited, depleted, fully exploited, recovering, underexploited);  
 
(b) any conservation and management measures applied to the fish stock targeted 
by the vessel benefitting from the subsidy; and  
 
(c) any fishing capacity management plan applied to the f leet to which the vessels 
benefitting from the subsidy belong.  
 
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 subsistenc e 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:  TN/RL/GEN/181/Rev.1  
 
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  (a) the vessel benefitting from the subsidy does not target fish stocks that are in an 
overfished  condition(3bis) 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 ta kes place, or by the relevant 
Regional Fisheries Management Organisations ; and  
 
(b) the targeted stocks are managed on the basis of the best available science  at the disposal of 
the concerned Party , consistent with the conservation and cooperation obligations under the 
relevant international law(6), as reflected in UNCLOS, conservation and management measures of 
competent RFMO (s)/A(s) , and generally accepted standards for the conservation and 
management of fisheries resources; and  
 
(c) the subsidisi ng Party  has presents  a management plan(7) for the fleet segment it intends to 
subsidise. demonstrating that the subsidies will not contribute to overfishing.  
 
 
4.2bis. Developing countries ranking among the world's [X] biggest in terms of marine 
capture production as determined by the FAO shall endeavour to refrain from making use of 
the flexibilities set out in Article 4.2.  
 
4.3. The flexibility set out in Article 4.2 shall be reviewed in view of the objectives set out in 
UN Sustainable Development Goal 14 target 4 and target 6 at the end of the tenth year 
following the entry into force of this Agreement.  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 vessels 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 specific 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 aquaculture and to fuel de -taxation schemes, 
or to subsidies compensating for damage caused by natural disasters.   
 
(2) For the purpose of this Agreement, the term "fishing" means searching for, attracti ng, locating, 
catching, taking and processing fish on board, 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" refe rs to any vessel, ship or other 
type of boat used for, equipped to be used for, or intended to be used for commercial  fishing or fishing 
related activities.  
 
(3bis) As recognised as overfished by the national authorities of the Party or by the 
relevant Reg ional Fisheries Management Organisation or Arrangement. In the absence of 
sufficient data to make such a determination, the stock shall be presumed to be in an 
overfished condition.  
 
(4) For the purpose of this Article, an operator includes any person invo lved in the operation, 
management or ownership of a fishing vessel.  
 
(4bis) The term IUU fishing stands for "illegal, unreported, and unregulated fishing" as 
defined in paragraph 3 of the International Plan of Action to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing of the United Nations Food and Agricultural 
Organization (FAO).  
 
(5) The term "subsistence fishing" refers to fishing activities undertaken by an individual household for 
consumption by the members of that househ old and kin of the fishers as opposed to fishing activities 
undertaken for commercial purposes. Nevertheless, part of the fish caught can be sold or exchanged 
for other goods or services.  
 TN/RL/GEN/181/Rev.1  
 
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  (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 Complia nce 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 ves sel monitoring and systems for 
reporting data and catch in sufficient detail.  
 
 
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ANNEX I  
 
ILLUSTRATIVE LIST OF SUBSIDIES THAT DO NOT NEGATIVELY AFFECT TARGETED FISH 
STOCKS THAT ARE IN AN OVERFISHED CONDITION  
 
(a) subsidies that improve fis hery 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)  subsidies aiming at improving the concerned Party'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 
after receiving the subsidy co ncerned.