TN/RL/GEN/195  
 
1 November  2017 
(17-5936) Page: 1/3 
Negotiating Group on Rules  Original: English  
 
PROHIBITION OF SUBSI DIES TO IUU FISHING  
PROPOSAL OF CHINA 
The follow ing communication, dated 1 November  2017, is being circulated at the request of the 
Delegation of China . 
 
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Preamble  
Members,  
 
Noting the harmful effect of illegal, unreported and unregulated (IUU) fishing on world fishery;  
 
Acknowledging the goal of UN Sustainable Development Goal 17 target 10 to promote a universal, 
rules-based, open, non -discriminatory and equitable multilateral trading system under the World 
Trade Organization, including through the conclusion of negotiations under its Doha Development 
Agenda and, in particular, Goal 14 target 6 to eliminate subsidies that contribute to IUU fishing 
by 2020;  
 
Recalling the mandate from the WTO Doha and Hong Kong Ministerial Declarations, and in 
particular the Hong Kong Ministerial mandate that "appropriate and effective special and 
differential treatment for developing and least -developed Memb ers should be an integral part of 
the fisheries subsidies negotiations, taking into account the importance of this sector to 
development priorities, poverty reduction, and livelihood and food security concerns "; 
 
Recognizing the efforts made by the United Nations Food and Agricultural Organization (FAO) in 
combating IUU fishing, including the International Plan of Action to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing (IPOA -IUU);  
 
Hereby agrees as follows:  
 
Article 1  
Prohibition of Subsidies to IUU Fishing  
1.1 Subsidies to vessels engaged in IUU fishing shall be prohibited.  
 
1.2 For the purpose of this Agreement1, a fishery subsidy shall only be attributable to the Member 
granting it, regardless of the flag of the vessel.  
 
1.3 Fo r the purpose of this Agreement, IUU fishing activities shall be determined based on the 
following:  
 
                                                
1 The wording of "this Agreement " here refers to the possible final outcome of the negotiation on the 
rules of fisheries subsidies. It might be replaced by other wording depending on the nature of the final 
agreement reached by Members, but in any event it shall cover all the rules that r esult from this negotiation, 
regardless of their form or nature, as a whole.  TN/RL/GEN/195  
 
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  1.3.1 IUU fishing activities shall be determined by the flag Member in accordance with its 
domestic laws and regulations, including through the form of lis ting. When the flag Member 
and the subsidizing Member are not the same, the fishing vessel concerned shall be notified 
to the subsidizing Member, and verified by the subsidizing Member through due procedure; 
or, 
 
 1.3.2 IUU fishing activities shall be dete rmined by the relevant Regional Fisheries 
Management Organizations2 (RFMOs) through listing and based on the following procedures:  
 
a. The fishing vessel concerned shall be notified by the RFMO to the flag Member of 
the vessel concerned; and  
 
b. The allege d IUU fishing activities shall be jointly investigated and verified by the 
flag Member with the relevant RFMO , based on positive evidence and due procedure, 
and in accordance with relevant international law s, agreements and rules of the 
RFMO.  
 
1.4 A Member  shall neither grant nor maintain a subsidy  referred to in paragraph 1, until the IUU 
fishing activity concerned is punished and corrected in accordance with that Member 's domestic 
laws and regulations, or the fishing vessel concerned is delisted by the relevant RFMO.  
 
Article 2  
Special and Differential Treatment  
2.1 Developing Members and LDCs declaring difficulties on small scale, artisanal and/or 
subsistence fishing3 shall have [X] years of transition period in implementing the disciplines related 
to unreported and unregulated aspects of such small scale, artisanal and/or subsistence fishing 
under Article 1.1.  
 
2.2 For developing Members and LDCs making such declarati on as set out in Article 2.1, if it 
receives the notification from a relevant flag Member or RFMO that its vessel is engaged in 
unreported or unregulated fishing, and if the unreported or unregulated fishing activity concerned 
has been determined in accord ance with Article 1.3, the developing Member or LDC concerned 
shall endeavor to implement Article 1.1.  
 
Article 3  
Final Provisions  
3.1 Nothing in this Agreement shall be interpreted as having any legal implications regarding 
territoriality, sovereignty or maritime jurisdiction.  
 
3.2 Any alleged IUU fishing activity involving disputes concerning territoriality, sovereignty or 
maritime jurisdiction shall be excluded from the scope of this Agreement, and shall not constitute 
IUU fishing under this Agreement.  
 
3.3 For the purpose of this Agreement, the Understanding on Rules and Procedures Governing the 
Settlement of Disputes shall not apply to any measure or situation having relevance to any issue 
of territoriality, sovereignty or maritime jurisdiction.  
 
3.3.1 Whenever any Member claims that there is a dispute under this agreement having any 
relevance to territoriality, sovereignty or maritime jurisdiction, the dispute proceeding concerned 
shall be automatically terminated immediately, unless the DSB decides by consensus otherwise.  
 
3.3.2 Articles 3.3 and 3.3.1 shall be an integral part of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes. This Agreement shall not enter into force unless Articles 3.3 
                                                
2 For the purpose of this Agreement, Regional Fisheries Management Organizations shall be recognized 
by the FAO before XX -XX-201X, and incorporated as Annex 1 of this Agreement.  
3 Small scale, artisanal, subsistence fishing shall be defined in accordance with Members’ domestic 
policies or laws and regulations.  TN/RL/GEN/195  
 
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  and 3.3.1 are incorporated into Ap pendix 2 Special or Additional Rules and Procedures Contained 
in the Covered Agreements of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes .  
 
3.4 In order to combat IUU fishing, the WTO is encouraged to increase its cooperati on with the 
FAO and RFMOs.  
 
 
 
ANNEX 1 LIST OF RFMO s 
[Place -holder ] 
 
 
 
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