G/SCM/Q2/EU/46  
 
27 April 2015  
(15-2268)  Page: 1/4  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
REPLIES TO QUESTIONS1 FROM NEW ZEALAND REGARDING 
THE NEW AND FULL NOTIFICATION OF THE EUROPEAN UNION2 
The following communication, dated 27 April 2015, is being circulated at the request of the 
Delegation of the European Union. 
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 We welcome the reporting of the European  Union's programmes affecting fisheries, 
which we see as operating in the contex t of the 2012 Rio+20 commitment to further 
improve the transparency and reporting of  existing fisheries subsidies programmes 
through the WTO. Heads of State/Rio+20 also encouraged States to eliminate subsidies 
that contribute to overcapacity and overfi shing, and to refrain from introducing new 
such subsidies or from extending or enhancin g existing ones. We also view this as an 
important contribution to the Doha mandate "to clarify and improve WTO disciplines on 
fisheries subsidies". 
 
Operational programme for fisheries deve lopment in the republic of Slovenia 
(G/SCM/N/253/EU/Add.24/Suppl.1 – Slovenia)  
New Zealand notes the European Union's prev ious response on the European Fisheries 
Fund (G/SCM/Q2/EU/33). With regard to this programme notified by Slovenia, we ask that the European Union: 
 
Question 1  
• Identify the relationship, and any differe nces, between this programme and the 
European Fisheries Fund in cluding in relation to: 
 
o The fisheries affected by the prog ramme, 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); 
o The current status of the programme, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life 
of the programme (including in terms of co-financing by any specific EU 
funds); and 
o The extent to which the programme provides support for the reduction of 
overcapacity and overfishing. 
 Reply 
 The relationship and any differences between this programme and the European Fisheries Fund: The Operational programme has been prepared wi th the objective of implementation of the 
European Fisheries Fund in Slovenia and respects the provisions that regulate the European 
Fisheries Fund in particular Council Regulation (EC) No 1198/2006 of 27 July 2006 on the 
                                               
1 G/SCM/Q2/EU/43. 
2 G/SCM/N/253/EU/Add.24/Suppl.1; G/SCM/N/253/EU/Add.16/Suppl.1; 
G/SCM/N/253/EU/Add.8/Suppl.1.   G/SCM/Q2/EU/46 
 
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  European Fisheries Fund which is available online at http://eur-lex.europa.eu/legal-
content/EN/TXT/?qid=1427198454317&uri=CELEX:32006R1198  
 
The fisheries affected by the programme are Slov enian fisheries which take place in Slovenian 
waters in the North Adriatic Sea. A variety of species are caught including demersal and small 
pelagic (but not large pelagic); this is mostly small-scale mixed fisheries (about 90% of Slovenian fishing vessels are also small-scale). 
 
The programme is in the final stage of implementation in accordance with the provisions of the European Fisheries Fund; all payment claims have to be submitted by the end of 2015. The budget 
of the programme did not change during the programming period, There were also no changes in 
co-financing. 
 The programme provides support for the reduction of overcapacity and overfishing in terms of 
Axis 1 (particularly permanent cessation of fishing activities) and Axis 4 which allows the 
fishermen and aquaculture producers to diversify into other activities.  
European Fisheries Fund (G/SCM/N/253/EU/Add.16/Suppl.1 - Lithuania) 
 New Zealand notes the European Union's prev ious response on the European Fisheries 
Fund (G/SCM/Q2/EU/33). With regard to this programme notified by Lithuania, we ask 
that the European Union: 
 Question 1 
 
• Identify the relationship, and any differe nces, between this programme and the 
European Fisheries Fund notified by the EU (G/SCM/N/253/EU) including in 
relation to: 
 
o The fisheries affected by the prog ramme, 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); 
o The current status of the programme, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life 
of the programme (including in terms of co-financing by any specific EU 
funds); and 
o The extent to which the programme provides support for the reduction of 
overcapacity and overfishing. 
Reply 
 Operational Programme of the Lithuanian Fisheries Sector for 2007–2013 (hereinafter – 
Operational Programme) is a document defining the measures financed from the European 
Fisheries Fund (hereinafter – EFF) and nati onal budget during the period of 2007–2013.  
 
Operational Programme covers the entire territory of Republic of Lithuania, with the exception for 
the fourth priority axis 4 "Sustainable developmen t of the fisheries areas" which is implemented in 
the areas defined in the description of the priority  axis. The fisheries affected by this programme 
are marine fishery (fishing in the high seas, in the Baltic Sea and in the coastal zone of the 
Baltic Sea), Inland waters fishery, Aquaculture and fish processing industry and marketing. The main fishing species in the Baltic Sea are cod, flatfish, Baltic herring and sprat.   
Operational Programme is anticipated to be in place until 31 December 2015.  
EFF co-financing rate per measures of Operational Programme is 77% in total (83% for Priority axis 1 Measures for the adaptation of the fishing fleet and the rest of the Priority axes 2, 3, 4 
and 5 EFF co-financing rate is 75%). 
 All priority axes and measures in the Operational Programme have been selected seeking to 
implement the goals and objectives set in the national Strategic Plan and following the main 
principles defined in Article 19 of Council Regulation (EC) No 1198/2006. One of the principles is ensuring the stable and enduring balance between fishing capacities and fishing opportunities. Seeking to adjust the existing fishing capacities with the existing fishing resources in the high 
seas, Baltic Sea and coastal zone of the Baltic Sea, the priority axis 1 measures for adaptation of G/SCM/Q2/EU/46 
 
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  the fishing fleet are applicable. Thus stable and long-term balance of the fishing capacities and the 
fishing possibilities will be ensured and contributi on will be made towards the implementation of 
the Common fisheries policy (will be funded by EMFF). Operational Programme provides support to such measures as Permanent cessation of fishing activities of fishing vessels, Temporary cessation 
of fishing activities, Modernization of fishing vessels which are seen as an instrument for the 
reduction of overcapacity and overfishing.  
Question 2 
 
• Clarify whether this programme notified by Lithuania will be replaced by the 
European Maritime and Fisheries Fund and if so how long it is anticipated that 
the new programme will be in place, an d how the budget will change over the 
life of the programme (including in term s of co-financing between any EU fund 
and Lithuania). 
Reply 
 
Operational Programme of the Lithuanian Fisheries Sector for 2014–2020 when notified by 
European Commission (a draft is still in progress) is anticipated to be a document defining the 
measures financed from the European Maritime  and Fisheries Fund (hereinafter – EMFF) and 
national budget during the period of 2014–2020. As  referred in article 94.2 of the EMFF Regulation 
No 508/2014 the EMFF contribution shall be calculat ed on the basis of the amount of eligible public 
expenditure. The operational programme shall establish the EMFF contribution rate applicable to 
the Union priorities set out in Article 6. The maximum EMFF contribution rate shall be 75% and the minimum EMFF contribution rate shall be 20 % of eligible public expenditure. 
 
Following a rule of N+3 it is anticipated that the EMFF Operational Programme in Lithuania would be implemented until 31 December 2023. 
 
European Fisheries Fund (G/SCM/N/253/EU/Add.8/Suppl.1 - Finland)  New Zealand notes the European Union's prev ious response on the European Fisheries 
Fund (G/SCM/Q2/EU/33). With regard to this programme notified by Finland, we ask 
that the European Union:  
Question 1 
 
• Identify the relationship, and any differe nces, between this programme and the 
European Fisheries Fund notified by the EU (G/SCM/N/253/EU) including in 
relation to: 
 
o The fisheries affected by the prog ramme, 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); 
o The current status of the programme, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life 
of the programme (including in terms of co-financing by any specific EU 
funds); and 
o The extent to which the programme provides support for the reduction of 
overcapacity and overfishing. 
Reply 
 
Finnish fishing fleet operates only in the Baltic sea. Finland has quotas for Baltic herring, sprat, cod 
and salmon. In addition, Finnish fishermen catch non-quota species in the territorial sea. There are no problems of by-catch or discards in the Finnis h fishing. The possibilities to support large-scale 
pelagic fishing have been very limited. Most funds have been awarded to small-scale coastal 
fishing - but also this has been rather limited. Support has been granted also to inland fishing 
which compares to small-scale coastal fishing.  
 
The last payments before closing of the programm e will be made during the year 2015. It is 
anticipated that some amounts of funding will be transferred from Priority axis 1 to other 
measures due to lack of eligible projects in marine fishing. It is still uncertain as to what extent all 
the funds of the budget will be used.  G/SCM/Q2/EU/46 
 
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There is no overcapacity or overfishing in the Finnish fisheries.   Question 2 
 
• Clarify whether this programme notified  by Finland will be replaced by the 
European Maritime and Fisheries Fund and if so how long it is anticipated that 
the new programme will be in place, an d how the budget will change over the 
life of the programme (including in term s of co-financing between any EU fund 
and Finland)? 
 
Reply 
 
EMFF will replace the EFF programme just like in all the Member States, for the period 2014-2020. 
Any changes of the total budget can't be anticipated over the life of the programme. Also, the 
changes within the budget (between different prio rity areas) can't be anticipated as the EMFF has 
not even started.  
 
Question 3  
• Clarify what the priority areas (axis) covers? 
 
Reply 
 
Priority axis 1: Adjustment of the marine fleet . The most popular measure has been investment 
aid to seal-proof (standing) gear in order to better reconcile the small-scale coastal fishing with 
the demands of natural preservation.  
Priority axis 2: Aquaculture, processing and marketing, inland fishing . The biggest part of the 
funds of this axis has been awarded to investments of processing. Also investment aids to modern 
recirculation aquaculture systems have taken a big share of this axis. In inland fishing the most money has been used to develop fishing ports and logistics of the fishermen. This priority axis is 
the biggest one, due to that fact that Finnish fi sheries sector is concentrated in aquaculture and 
processing of farmed fish.  Priority axis 3: Measures of common interest . Wide variety of projects to develop the fisheries, e.g. 
pilot projects to further develop aquaculture produc tion or to improve the "seal-friendliness" of the 
fishing gear. Development of fishing ports. Promot ion of fisheries products. Most funds, however, 
have been used to compensate the losses caused by the seals to the catches of the fishermen.  
Priority axis 4: Sustainable development of fisheries areas . Community led local development of 
areas where fisheries are important. Mostly su pporting the development of small-scale coastal 
fishing and the local cooperation as well as fishing tourism.  Priority axis 5: Technical assistance . Support to improve the national administration of the EFF, 
like data systems and so on. 
 
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