WORLD TRADE  
ORGANIZATION  TN/RL/GEN/92 
18 November 2005 
 (05-5449) 
Negotiating Group on Rules Original:   English 
  
 
FISHERIES SUBSIDIES:  SMALL-SCALE FISHERIES 
 
Paper from the Republic of Korea
 
  
 The following communication, dated 16 November 2005, is being circulated at the request of 
the Delegations of Brazil and the United States.   The submitting delegation has requested that th is paper, which was submitted to the Rules 
Negotiating Group as an informal document (JOB(05)/ 295), also be circulated as a formal document. 
 
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I. INTRODUCTION 
1. The negotiations on fisheries subsidies ar e making progress throu gh contributions by 
Members on a broad range of topics from the extent  of new fisheries subsidies disciplines, to the 
categorization of red and green subsidies, to th e S&D treatment for developing countries.  Among the 
many important topics, the special considerations of small-scale fisheries deserve our attention and 
intensive discussion.  
2. During the Rules negotiating group meeting, sever al submissions and remarks were made on 
the need for special consideration for small-scal e fisheries or artisanal fisheries in providing a 
discipline on fisheries subsidies.
1  Korea, in its joint proposal with Japan and Chinese Taipei in 
February 2005, also noted a need for flexibility fo r the small-scale fisheries as a means of special 
consideration for the socially weak2  The paper also suggested that the subsidies provided to small-
scale fisheries should be categorized as a green s ubsidy in the context of a social safety net. 
 
3. However, for practical application in the WTO,  the difficulties arise from the lack of an 
authoritative definition for what constitutes a small-scale fishery.  Even the FAO cannot provide a specific definition, although it is working on one via a working group.  A commonly used definition 
of a small-scale fishery is a somewhat lengthy listing of their characteristics.
3 
                                                      
1 “Programmes for artisanal fisheries in developi ng countries are likewise not a focus (of the 
negotiation)” TN/RL/W/77 (United States); “Green box … (2) subsidies to small scale fishing and to artisanal 
fishing, provided that such fisherie s are not "patently at risk".” TN/RL/GE N/56 (Brazil); “The following should 
not be subject to subsidies disciplines: … (ii) A ssistance to artisanal or small-scale fisheries” 
TN/RL/GEN/57/Rev.2 (Solomon Islands) 
2 “It would be desirable to allow flexibility fo r each country's domestic small-scale subsistence 
fisheries to ensure adequate protection for the vulnerab le fisherman. At the same time, devices to prevent 
loopholes must be put in place.” TN/RL/W/172 
3 “Small-scale fisheries can be broadly characteri zed as a dynamic and evolving sector employing 
labour intensive harvesting, processing and distribution technologies to exploit marine and inland water fishery resources. The activities of this sub-sector, conducted full-time  or part-time, or just seasonally, are often targeted 
on supplying fish and fishery products to local and domestic market, and for subsistence consumption. Export-
oriented production, however, has increased in many sm all-scale fisheries during th e last one to two decades TN/RL/GEN/92 
Page 2  
 
4. Perhaps more to the point is the fact that WTO serves a different purpose than does the FAO, 
and that it may not be appropriate to simply adopt and apply the FAO definition even though its 
definition has undoubtedly been useful in the arenas for which it was created.  Therefore, a discussion 
on the definition to be applied in the WTO context wo uld be a useful step in developing concrete rules 
on fisheries subsidies for the application to the question of special consideration for small-scale 
fisheries. 
 
II. VARIOUS DEFINITIONS OF SMALL-SCALE FISHERIES 
5. As said above, no universal defin ition of small-scale fisheries exists, and other terms such as 
traditional or artisanal fisheries are sometimes used synonymously.  In trying to define "small-scale", 
several authors concluded that it can differ accordin g to location and context but there are features in 
common to most small-scale fisheries.
4 
 6. The FAO defines small-scale fisheries as “artisanal ” or “traditional” fisheries.  From the FAO 
definitions, traditional fisheries involve households (as distinct from commercial companies) using 
relatively small amount of inputs in capital and en ergy, and small boats making short fishing trips 
close to shore.  Also, a part of the FAO definitio n is the typical disposition of the catch which is 
mainly for local consumption.
5  In a regional workshop on social feasibility in small-scale fisheries 
development, a small-scale fisheries definition is developed based on labour in tensity, income level, 
degree of mechanization, level of production, amount and range of fishing activities, political 
inclination, employment, social mobility and financial de pendency.  All of these factors, except for 
financial dependency, are at low levels and are re garded as affected by the economic decisions and 
other constraints of the consumers purchasing the products produced by small-scale fisheries.6 
 7. The UNEP, in its workshop and its commissione d paper, provides the elements of being an 
artisanal fishery as follows:
7  
                                                                                                                                                                     
because of greater market integratio n and globalization. While typically me n are engaged in fishing and women 
in fishing processing and marketing, women are also k nown to engage in near shore harvesting activities and 
men are known to engage in fish marketing and distribution….  Small scale fisheries operate at widely differing 
organizational level ranging from self-employed single operators through informal micro-enterprises to formal 
sector businesses. This sub-sector, therefore, is not homogenous within and across countries and regions and attention to this fact is warranted when formulating stra tegies and policies for enhancing its contribution to food 
security and poverty alleviation.” Report of the Second Session of the Working Party on Small-scale Fisheries , 
FAO Fisheries Report No.735, 2003. 
4 Smith, I.R., A research framework for traditional fisheries , International Center for Living Aquatic 
Resources Management, Manila, Philippines. Studies and Reviews No. 2, 1979; 
  Panayotou, T., Management concepts for small-scale fisheries: economic and social aspects , FAO 
Fisheries Technical Paper 228, 1982; 
Berkes, F. and Kislalioglu, M ., A comparative study of yield, investment and energy use in small-scale 
fisheries , Fisheries Research, 1989; and 
Poggie, J.J. and Pollnac, R.B., Small-scale fisheries developmen t: sociocultural perspectives , 
International Center for Marine Reso urce Development, University of Rhode Island, Kingston, RI, USA, 1991  
5 "Traditional fisheries involving fishing households (as opposed to commercial companies), using 
relatively small amount of capital and energy, relatively small fishing vessels (if any, making short fishing trips, 
close to shore, mainly for local consumption. In practice, definition varies between countries, e.g. from gleaning or a one-man canoe in poor developing countries, to more than 20 m. trawlers, seiners, or long-liners in 
developed ones.  Artisanal fisheries can be subsistence or commercial fisheries, providing for local consumption 
or export.  Sometimes referred to as sma ll scale fishery", 2005 , FAO Online Glossary 
6 FAO, Report of Workshop on Social Feasibility in Small-scale Fisheries Development, 1979 
7 UNEP Workshop for Promoting Poverty Reduction and Community Development Though New 
WTO Rules on Fisheries Subsidies, June 2005  TN/RL/GEN/92 
 Page 3 
 
 
 
Definitional Elements Typical examples (not universal) 
Vessel type Canoe, dory 
Physical Attributes   
Vessel size Short (e.g.,10m); light Physical Attributes 
Physical Attributes   
Vessel motor unmotorized or small engine 
Fishing gear/technique manual or small net; passive; low tech 
Pattern of fishing   
Location of land base Rural 
Pattern of fishing   
Location of fishery In-shore Pattern of fishing 
Pattern of fishing   
Target type Multi-species 
Of fishery Traditional (clan or community) 
Social Structure Social Structure   
Of fishing enterprise Family crew, owner on board 
Market orientation Direct consumption or local market 
Economic Condition Economic Condition   
Income level Subsistence or very poor 
 
8. International organizations such as the FAO, the OECD and the WTO use the terms artisanal 
fisheries, family fishing, aboriginal fisheries as i ndicating small-scale fisheries.  Despite the relative 
nature of these definitions and the diversity of definitions, small-scale fisheries can be generally 
characterized by low input levels, high labour-cap ital ratios, and usually supporting a subsistence 
standard of living.  To ensure consistency and clar ity of application, it is important to harmonize the 
terminology to be used in the new WTO fisheries subsidies disciplines. 
 
III. POSSIBLE CRITERIA FOR DEFINING SMALL-SCALE FISHERIES  
9. We believe that the definition of small-scale fish eries should reflect the traits inherent in the 
terms mentioned above.  Despite the lack of a glob ally accepted definition of small-scale fisheries, a 
combination of socio-economic and technical considerations will be useful for explaining what small-
scale fisheries are.  These factors could serve as possible criteria to be used in defining small-scale fisheries.  Socio-economic criteria 
 
10. There are many aspects that can show the soci o-economic characteristics of the small-scale 
fisheries.  Income of the fishermen may constitute  the most important criterion, since small-scale 
fisheries are conducted mostly by the socially-weak.  Also, the small-scale fishermen tend to show the 
inclination of less mobility from their settlement.  Ju st for the purpose of illustration, we may consider 
such indicators as low income, low production per fa mily, low production per boat, immobility of the 
dwelling place or short moving distance, and the li mited chances for job shift.  In applying this 
criterion, we should also use a relative measurement to reflect the different socio-economic situation 
and the development status of each country.  TN/RL/GEN/92 
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Technical criteria 
 
11. Technical traits such as vessel tonnage, lengt h and horse power, distance from coast, fishing 
gear and techniques can be important factors in d eciding whether the fisheries are small-scale or not. 
Those factors are ultimately comb ined with the catch per vessel. Either one or more of these 
combinations may be the deciding criteria for being a small-scale fishery. 
 12. Each of these two criteria (socioeconomic and t echnical), has merits and demerits.  A socio-
economic criterion can better reflect the special circum stances of each country.  The weakness of this 
criterion is the availability of reliable and timely soci oeconomic data.  The technical criterion reverses 
these merits and demerits.  The technical criterion is relatively easy to develop and apply but it does 
not reflect differences among countries in the developm ent status.  Despite this complexity, it is also 
important for the WTO criteria to be easy to apply and less liable to dispute.  Thus, there is a need for 
agreement on a simple and feasible standard criterion for small-scale fisheries.  IV. EXAMPLES IN THE LEGISLATIONS OF KOREA 
 
13. In Korea, there is no clear definition for sma ll-scale fisheries, but the definition for small-
scale fisheries can be inferred from specific provisions of several laws.  From the Fisheries Act, the provincial governments of the vessel registration issue “coastal fishery li cences” for vessels under 
8 GT
8 which operate near shore, and for vessels under 10 GT for certain types of fisheries. 
 
14. Among vessels with coastal fishery licenses, the Fisheries Resources Promotion Act stipulates 
that operators of vessels under 5GT are exempt fro m fisheries resource re-stocking fees.  The Korean 
government imposes fisheries resources re-stocking fees for all vessels with fishing licenses and uses 
the fee as a financial resource for the stock replenishing projects.  However, vessels under 5GT are 
exempt from such fees because of their small-scale a nd subsistence nature, that is, because the fishing 
intensity by such vessels is not substantial and the impact on the resources is negligible. 
 15. In the same context, the Fishing Vessels Act and its Enforcement Regulation stipulate that 
every fishing vessel should receive a permit for modification of vessels.  However, vessels under 
2 GT are exempt from such a permit for modificati on. This kind of exemption is a form of special 
consideration for small-scale fisher ies even though it may not constitu te the financial contribution by 
the government in the meaning of Article 1 of the SCM Agreement in the first place.  16. Although the above is only a limited example of  one country, we believe that collective 
efforts in sharing each Member’s system and expe rience will contribute to the development of a 
definition for small-scale fisheries in th e WTO fisheries subsidies disciplines. 
 
V. IMPORTANCE OF SMALL-SCALE FISHERIES SUBSIDIES 
17. Small-scale fisheries have traditionally been subs istence in nature, rather than commercial.  
Most small-scale fishermen find it difficult to make  new investments in their vessels and gear. As a 
result, they tend to operate with technology wh ich is labour intensive and has low productivity. 
 
                                                     
 
8 The length of vessel may vary by vessel types, but normally in Korea, vessels of 10 GT are 
approximately 13 meters, 8 GT are 12 meters, 5 GT are 10meters. 
  TN/RL/GEN/92 
 Page 5 
 
 
18. Even so, it is not easy for them  to leave the coastal areas and find new vocations.  In most 
cases, fisheries are family business of many genera tions and fishing techniques are handed down from 
generation to generation.  Often times, there ar e close ties among local people which come from the 
collective nature of the fishing operation.  As a resu lt, this creates settlements of fishermen in an area, 
which are similar to agriculture villages. 
 
19. Therefore, support for them by the government to  ensure a minimum standard of living is a 
consideration for the socially weak as a means of a social safety net.  Any restriction on the 
government’s role in that aspect may cause serious soci al problems.  For instance, if a large number of 
small-scale fishermen leave the coastal areas an d the fishing communities, it is not only an 
aggravation of the urban concentration problem, but also a threat to the conservation of traditional 
culture.  The unique culture of the coastal areas and the fishing communities are the sources of the 
local lives, culture and vitality unique to the regi on.  These have precious value and should be passed 
on to future generations.  
20. In addition, most vessels engaged in small- scale fisheries fall short of various safety 
requirements and it is difficult for them to make investments for operational safety because of their 
financial status.  This increases the probability of maritime accidents for those small-scale vessels. 
Therefore, it should be the responsibility of governme nt to enable them to meet the minimum safety 
requirements.   
21. For developing countries, small-scale fisheries will mean more than they do for developed 
countries.  Despite the disassociation of small-scale fisheries from income generation, it is frequently 
stated that they contribute to poverty reduction and the food supply of deve loping countries.  Small-
scale fisheries are also directly related to f ood security issues in some developing countries. 
 
22. A nation’s pursuit of social, cultural and econom ic objectives suggests special consideration 
for small-scale fisheries. Social and cultural objec tives are often beyond the reach of market-oriented 
economy theory.  Each government has a responsibility to care for its people, especially the socially-
weak, and to conserve its cultural heritage.   
VI. CONCLUSIONS 
23. For the above reasons, we believe that subsid ies to small-scale fish eries are good candidates 
for green subsidies.  However, it is advisable that Members take su fficient caution to avoid an adverse 
impact of such special considerations on fisheri es resources.  The government should not neglect to 
monitor the level of small-scale fisheries activities,  because adverse impacts of subsidies to small-
scales fisheries will fall upon its own country before it  proliferates to another country. As a final note, 
although not specific to small-scale fisheries, it is  also important that the rules for the special 
considerations be clear, definite and accompanied by a transparency scheme in order to guarantee fair 
and effective functioning of the disciplines and to prevent circumvention.   
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