WORLD TRADE  
ORGANIZATION  G/SCM/N/220/HKG 
19 May 2011 
 (11-2542) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
HONG KONG, CHINA 
 
 
 The following notification, dated 18 May 2011, is being circulated at the request of the 
Delegation of Hong Kong, China. 
 
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 Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies 
and Countervailing Measures (ASCM), Hong Kong, China submits herewith the new and full 
notification for the fiscal year 2010-11.  In accordance with Article 25.7 of the ASCM, the 
notification of the measures concerned does not prej udge their legal status, effects or nature under 
GATT 1994 and the ASCM. 
 
A. FISHERIES DEVELOPMENT LOAN FUND 
1. Title of the programme  
 
 Fisheries Development Loan Fund.  
2. Period covered by the notification
 
  Fiscal year 2010-11 (i.e. April 2010 – March 2011). 
 
3. Policy objective and/or purpose
 
 
 To provide loans for fishermen to switch to su stainable fisheries or related operations which 
are conducive to reducing fishing efforts and conservi ng fisheries resources, and for fish farmers to 
develop aquaculture with a view to improving th e quality and food safety standards of aquaculture 
products. 
 4. Background and authority
 
 
 The fund is administered by the Agriculture, Fisheries and Conservation Department.  G/SCM/N/220/HKG 
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  5. Form
 
  Loan. 
 
6. To whom and how the assistance is provided
 
 
 Applicants for loans to capture fishermen mu st be Hong Kong residents and local fishing 
vessel owners on or before 16 June 2006;  or loca lly registered companies wholly owned by local 
fishermen who are also local residents, and the majority of whom are local fishing vessel owners 
fulfilling the afore-mentioned criteria.  Eligible fisherman or company may borrow under this loan 
fund once only.  
 Applicants for loans to fish farmers must be Hong Kong residents engaged in aquaculture 
operations;  or locally registered companies wholly owned by any of the fish farmers who are also local residents. 
 
 The loan is granted at an interest rate of 2. 5 per cent per annum for capture fishermen;  and at 
an interest rate based on the "No Gain No Loss"  principle of the Hong Kong Special Administrative 
Region Government for fish farmers.  The "No Gain No Loss" rate is set by taking into account such 
factors as the best lending rates of the note-issuing banks in Hong Kong.  
7. Amount
 
  The amount of loans issued for the fiscal year 2010-11:  HK$0. 
 
8. Duration
 
 
 This is an on-going scheme. 
 9. Statistical data permitting an assessment of the trade effects
 
 
 No data available.  
B. F
ISH MARKETING ORGANIZATION LOAN FUND 
1. Title of the programme  
 
 Fish Marketing Organization Loan Fund. 
 2. Period covered by the notification
 
 
 Fiscal year 2010-11 (i.e. April 2010 – March 2011).  
3. Policy objective and/or purpose
 
  To provide loans to fishermen for meeting their production and sustainable development 
needs, including repair and replacement of fishing vessels, gear and equipment. 
  G/SCM/N/220/HKG 
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  4. Background and authority  
  The fund has been set up by the Fish Marketing Organization (FMO), a statutory body 
established by the authority of the Marine Fish (Marketing) Ordinance (Chapter 291).  The FMO is 
the major source of the fund.  
5. Form
 
  Loan. 
 
6. To whom and how the assistance is provided
 
 
 Applicants may include:  (i) a member of regist ered fishermen's co-operative society;  (ii) an 
individual fisherman;  or (iii) a registered fishing company.  
 There are two types of loans that may be gr anted under the Fund:  normal loans and special 
one-year loans for fishermen affect ed by the two and a half month annual fishing moratorium in the 
South China Sea.  The interest rates applicab le in the fiscal year 2010-11 were as follows: 
 
• normal loans:  2.83 per cent per annum fo r individual fishermen, and 1.33 per cent 
per annum for members of registered co-operative societies; 
 
• special one-year loans for fi shermen affected by the annual moratorium:  2 per cent 
per annum. 
 
7. Amount
 
 
 The amount of loans issued for the fiscal year 2010-11 was as follows: 
 
• normal loans:  HK$608,000. 
 
• special loans for fishermen affected by the annual moratorium:  HK$53,486,000. 
 
8. Duration  
  This is an on-going scheme. 
 
9. Statistical data permitting an assessment of the trade effects
 
 
 No data available. 
 C. K
ADOORIE AGRICULTURAL AID LOAN FUND 
1. Title of the programme  
  Kadoorie Agricultural Aid Loan Fund. 
 
2. Period covered by the notification
 
 
 Fiscal year 2010-11 (i.e. April 2010 – March 2011). 
 G/SCM/N/220/HKG 
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  3. Policy objective and/or purpose
 
  To provide loans to fish farmers and fa rmers for development and working capital.  
Specifically, loans are issued fo r purchase of livestock, fry, feed and farm equipment, and 
maintenance of farms.  
4. Background and authority
 
  The fund has been established under the Kadoorie Agricultural Aid Loan Fund Ordinance 
with donations from both non-government sources an d the Hong Kong Special Administrative Region 
Government.  
5. Form
 
  Loan. 
 
6. To whom and how the assistance is provided
 
 
 Fish farmers and farmers.  The interest rates applicable in the fiscal year 2010-11 were as 
follows:  
• loans not exceeding HK$130,000:  0.00525 per cent per annum for development 
capital, and 0.007 per cent per annum for working capital; 
 
• loans between HK$130,000 and HK$200,000:  2.04515 per cent per annum; 
 
• loans at HK$200,000 and above:  4.0833 per cent per annum. 
 
7. Amount
 
 
 The amount of loans issued for the fiscal year 2010-11 was HK$6,539,000. 
 8. Duration
 
 
 This is an on-going scheme.  
9. Statistical data permitting an assessment of the trade effects
 
  No data available. 
 
 
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