WORLD TRADE  
ORGANIZATION  TN/RL/W/234 
17 July 2008 
 
 (08-3467) 
Negotiating Group on Rules Original:   Spanish 
  
 
STATEMENT ON THE NEGOTIATIONS ON FISHERIES SUBSIDIES 
 
Communication from Argentina, Chile, Colombia,
 
Ecuador, Mexico and Peru  
 
 
 The following communication, dated 7 July 2008,  is being circulated at the request of the 
delegations of Argentina, Chile, Co lombia, Ecuador, Mexico and Peru. 
 
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 1. The delegations of Argentina, Chile, Colombia, Ecuador, Mexico and Peru wish to refer to 
certain aspects which they believe are central to  the negotiations on fisheries subsidies, without 
prejudice to their positions on specific aspects of tho se negotiations or other areas of the negotiations 
on Rules. 
2. We recall the negotiating mandates, particularly  Annex D of the Ministerial Declaration of 
Hong Kong, where it is recognized that the achieveme nt of substantial results on all aspects of the 
Rules mandate is important, among other reasons, fo r the overall balance of results in the Doha 
Development Agenda.  Furthermore, the Ministerial Declaration notes that there is broad agreement in 
the Negotiating Group on the need to strengthen disciplines, including through the prohibition of 
certain forms of fisheries subsidies that contribute to  overcapacity and over-fishing.  It is also pointed 
out that appropriate and effective special and differential treatment for developing and least-
developed countries should be an integral part  of the negotiations on fisheries subsidies. 
3. In November 2007, the Chairman of the Nego tiating Group on Rules submitted a draft text 
which, on the issue of fisheries subsidies, propo ses a new Annex VIII to the Agreement on Subsidies 
and Countervailing Measures as well as some amendments to the Agreement itself.
1  This draft text 
was used as the basis for an inte nse and technical debate, as reflecte d by the Chairman in the working 
document circulated on 28 May 2008.2  During the discussions, new proposals were presented. 
4. The signatories to this statement, all developing countries in which the fisheries sector has a 
special economic, social and cultural importance an d the sustainable management of resources is a 
priority line of action, together account for a signi ficant percentage of world fisheries catches and 
production and have the same commitment to the di sciplines.  Likewise, on the basis of their 
experience, they recognize the importance of proper management to ensure the sustainability of those 
resources and of the sector in general.  Accordingl y, they wish to underline the following aspects of 
the negotiations in general and of the Chairman's draft text in particular.3 
                                                      
1 TN/RL/W/213. 
2 TN/RL/W/232. 
3 The order of the aspects does not imply any prioritization. TN/RL/W/234 
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  Need to preserve the a rchitecture and ambition 
 
5. The draft text follows the structure of the SCM Agreement, i.e. its concepts, basic principles, 
efficiency, instruments and objectives, albeit with the necessary flexibility and due consideration of 
the reality of fisheries, which was not a feature of  the Agreement. We support this structural layout 
because it reflects the objectives of the negotiation a nd ensures a level of ambition consistent with 
those objectives.  The main focus is and must con tinue to be a prohibition of subsidies that is 
sufficiently broad to achieve the substantial results  we envisaged in Doha and Hong Kong, but, at the 
same time, accompanied by limited general excepti ons and adequate flexibilities for developing 
countries.  The general exceptions and flexibiliti es must necessarily be subject to appropriate 
management requirements to ensure that the objectives are met. 
6. From that perspective, the draft text is not only a sound basis for negotiation, but has also 
enabled us to make progress in a necessary exchan ge of ideas to ensure a substantial outcome with 
effective disciplines.  Any final outcome of these negotiations must respect the architecture of the 
SCM Agreement and must have a level of ambiti on consistent with the Ministerial mandates. 
Special and Differential Treatment 
 
7. In Hong Kong, our Ministers recognized the importance of the fisheries sector for 
development priorities, poverty reduction, and livelihood and food security concerns.  If well 
managed, fishing can continue to be a significant source of food and income for a large part of the 
population in developing countries, as well as an instrument for reorientation from less productive 
activities.  That is why a central element of fu ture disciplines will be the flexibilities given to 
developing countries to support fishing activities.  However, scientific information on the status of 
marine resources and countries' own experiences in the exploitation of fishery resources show that 
such flexibility cannot be a blank cheque. 
8. Under Special and Differential Treatment, article III.2.a of the Chair's draft text presents an 
interesting effort to identify elements that can be used to classify vulnerable fisheries in the absence of 
accurate definitions.  It is not our aim to draw a de finition from that text, but we deem it necessary to 
mention that the elements for distinguishing one or  another category should be consistent with the 
management requirements to which each is subject.  Special and differentiated treatment must include 
flexibilities for the more sensitive sector s, including artisanal fishing. 
9. Our common experience confirms that the growth and expansion of the fisheries sector is 
sustainable only if it is accompanied by adequate management measures to ensure the sustainability of 
resources.  Failure to recognize this means a failure of responsibility vis-à-vis future generations who 
will also depend on fishing for their subsistence and sustainable development.  The Chairman's draft 
text establishes the necessary link be tween management and subsidies. 
Fisheries management is a necessity and a challenge 
 
10. A vital element of the architecture and, hence, of any final outcome is the sustainability of 
fisheries resources as reflected in adequate manage ment.  The Ministers in Hong Kong reaffirmed the 
commitment undertaken at Doha to enhance the mutual supportiveness of trade and environment. 
11. Article V of the draft text is a cornerstone of  the management disciplines and provides a basis 
for building a model of adequate fisheries manage ment requirements for those Members that use the 
flexibilities and exceptions to grant subsidies.  A lthough Article V needs more technical work, it 
contains many of the elements that should form part of the final di sciplines, which might provide for a 
combination of mandatory elements and good practice guidelines.  TN/RL/W/234 
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  12. We recognize, as regional experience has shown, that fisheries management is costly and 
difficult, consuming not only time but also human and scientific resources.  But that should be no excuse for not requiring such management.  On the c ontrary, the differences in the nature of subsidy 
programmes and their impact on fisheries resources would make it possible to establish a progressive approach to management on the basis of certain cr iteria such as the type of subsidy programme, the 
state of the fisheries concerned, the fishing effort, the level of exploitation or the geographical area of 
coverage, always measured in relati on to sustainability.  In other words, the greater the impact on 
resources, the greater the management requirement.  Thus, we would expect a subsidy for artisanal 
fishing to be subject to fewer management requireme nts than one for industrial fishing.  Moreover, the 
defined requirement could be implemented progressi vely in time, taking as a minimum starting point 
the management efforts already being deployed by a Member. 
Technical Assistance 
 
13. The challenges involved in fisheries management and the difficulty of achieving a "gold 
standard" for the sustainable utilization of fisheri es resources, necessarily lead to a reaffirmation of 
the importance of Technical Assistance in all of its as pects.  If the sustainability targets of a fisheries 
management system are to be achieved, they will require economic resources, scientific and technical 
capacity and experience, which in many cases will only be obtained through appropriate Technical 
Assistance.  This is a tool enabling all developi ng countries to participate effectively in the new 
disciplines, and it is also a nece ssary instrument to support the gradual establishment of fisheries 
management structures. 
14. Nevertheless, fisheries management and the bind ing nature of the disciplines to be agreed 
cannot be made conditional on the granting of such technical assistance, precisely because of the need to ensure the sustainability of resources. 
15. An important element in training and technical assistance will be the notifications Members 
will have to submit to the WTO and their further revision, as well as the exchange of experiences and 
cooperation arising therefrom.  They then become  an important source of information on how other 
Members are managing their systems, what measures they are applying, the degree of success they are 
achieving, the adjustments they have had to make, etc. 
16. To sum up, when the negotiations resume in Se ptember, we must not lose our way and always 
remember that they depend on the recognition that fisheries subsidies not only distort trade but can 
contribute significantly to an excess of capacity a nd overexploitation of  resources – which is what has 
happened in practice.  The WTO can provide us with instruments to resolve this problem, recognizing 
the importance that the fisheries sector has in deve loping countries.  The final outcome of this process 
must take the form of substantial and ambitious  disciplines in accordance  with the objectives 
established and reflected in the mandates, with ad equate flexibilities for developing countries to 
promote the sustainable development of fishing activi ties, particularly for the most vulnerable sectors, 
but subject to management that will ensure  the sustainability of marine resources. 
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