TN/RL/W/232 
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ANNEX C – FISHERIES SUBSIDIES  
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Textual Proposals Chairman's Text (TN/RL/W/213) Delegations' Comments on Chairman's Text 
 
PROHIBITION AND SCOPE/COVERAGE  
 
 
[[ 3bis1.      Except as provided for in Article 27 bis and Annex 
VIII of this Agreement, subsidies1 within the meaning of Article 
1 of this Agreement that confer a benefit2 directly or indirectly 
on any natural or legal person engaged in the harvesting, 
processing, transport, marketing or  sale of the fish and fisheries 
products listed in Annex IX of this Agreement (“fisheries subsidies”) shall be prohibited. 
 
 ANNEX IX: PRODUCT COVERAGE FOR FISHERIES 
SUBSIDIES  
 
1. The fish and fisheries produ cts referred to in Article 3  
bis and related Articles refer to: 
 
HS Chapters/Code/Headings  
HS 0509 (sponges) 
HS 0511.91 (fish unfit for human consumption) 
HS 03  (fish and fish products) 
HS 1504.10 (fishoil) HS 1504.20 (fishoil) 
ex HS 1603 (juices and extracts of meat 
and fish) 
HS 1604 (prepared or preserved fish) 
HS 1605 (prepared or preserved crustaceans and molluscs) 
HS 2301.20 (fishmeal) 
 _____________________ 
 1We note that Article 1.2 of the ASCM provides that a 
subsidy shall be subject to the provisions of Part II only if such a 
subsidy is specific in accordance with the provisions of Article 2.  [We] 
continue[] to be concerned that so me generally available (non-specific) 
subsidies could directly contribute to overcapacity and overfishing, for 
example a generally available fuel  subsidy.  We look forward to 
discussing textual options for addressing this concern.    
 2The term benefit is used here in  the sense of Article 1.1(b) of AGREEMENT ON SUBSIDIES AND 
COUNTERVAILING MEASURES 
 
3.1     Except as provided in the Agreement on Agriculture, the following subsidies, within the meaning 
of Article 1, shall be prohibited: 
 [...]  
 
              (c)     subsidies referred to in Article I of 
Annex VIII.  
 
[...]  
__________________________ 
 9This expression is not meant to allow 
countermeasures that are dispropor tionate in light of the fact 
that the subsidies dealt with under these provisions are 
prohibited.  It is recognized that in a case of violation of the 
prohibition in Article 3.1(c) and Article I of Annex VIII, 
countermeasures may take the fo rm of suspension of access of 
fishing or service vessels to  port facilities for landing, 
transhipping or processing fish.   
 10This expression is not meant to allow 
countermeasures that are dispropor tionate in light of the fact 
that the subsidies dealt with under these provisions are 
prohibited.  It is recognized that in a case of violation of the 
prohibition in Article 3.1(c) and Article I of Annex VIII, 
countermeasures may take the fo rm of suspension of access of 
fishing or service vessels to  port facilities for landing, 
transhipping or processing fish.   
 
[...] 
 
 
ANNEX VIII 
 
 
I.1 Except as provided for in Articles II and III, or in the exceptional case of natural disaster relief
77, the With regard to the scope of the prohibition in general , 
some delegations consider that the Chairman's text is far 
too ambitious, while for other delegations the text falls 
considerably short of their expectations.    
Certain delegations view the list of proposed 
prohibitions as far too broad .  In their view, it 
encompasses certain types of subsidies that do not 
directly contribute to overca pacity and overfishing, in 
particular where the subsidising Member has sound fisheries management measures in place.  Concerns 
expressed in this regard include that in the view of some 
delegations even certain environmentally-beneficial subsidies that either help to reduce, or have no impact 
on, capacity would be covered by the prohibition.   
Some delegations consider that even subsidies to vessel 
construction and repair can be allowed under certain 
conditions that would prevent the development of overcapacity.   
 
Other delegations continue to prefer a top-down 
(broad ban) approach , rather than the bottom-up 
approach in the draft text, bu t have indicated that they 
can accept the latter approach so long as the ultimate scope of the prohibition is sufficiently broad.  In this 
regard, some of these delegations consider that the 
scope of the proposed prohibition is too narrow.  
They advocate extending it to cover additional 
subsidies, especially to activities further downstream.  
These delegations also view some of the drafting in the proposed list of prohibited subsidies as too loose, 
considering that it leaves open potential loopholes that 
need to be closed in any final text.      
Another group of delegations view the proposed list 
of prohibited subsidies as  generally reflecting an 
appropriately high level of discipline .  In their view, 
the text respects the mandate from Ministers by striking the right balance in proposing for prohibition the  TN/RL/W/232 
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this Agreement.  ]] 
 
 
 
 
[[ 1.1 The Annex covers any fisheries subsidy, i.e. subsidies 
as defined in Article 1.1 of th e SCM Agreement that are granted 
to enterprises engaged in marine wild capture fisheries.  
 
1.2. Fisheries subsidies sh all encompass any subsidy 
programme and/or the disbursements made under such 
programme as well as ad hoc subsidies.  
2.1 The following subsidies shall be prohibited : 
 
(a) Subsidies for the construction of new fishing 
vessels, 
 (b) Subsidies for the renovation of existing 
vessels, and 
 (c) Subsidies for the permanent transfer of fishing 
vessels to other countries including through 
the creation of joint ventures with partners of 
those countries.
  ]] 
  
  
 
[[ 1.    The following subsidies which confer a benefit5 and 
which are specific, as set out in  Articles 1 and 2 of the ASCM,  
shall be prohibited: 
1.1. Any subsidy granted for the acquisition, building, 
maintenance, repair or up-grading of fishing vessels6 
exceeding 15 metres overall length, including any 
technical or electronic equipment7 onboard the vessel. 
 
_____________________     
 5The provisions set out in Article  14 of the ASCM shall apply 
whenever an assessment of whether a subsidy confers a benefit. 
 6For the purpose of this Annex, fishing vessels means any 
vessel intended for use for the purpos e of commercial exploitation of 
fishing resources, including fish pr ocessing vessels a nd vessels engaged following subsidies within the meaning of paragraph 1 
of Article 1, to the extent they are specific within the 
meaning of paragraph 2 of Article 1, shall be prohibited:  
 (a) Subsidies the benefits of which are 
conferred on the acquisition, construction, repair, renewal, 
renovation, modernization, or any 
other modification of fishing vessels
78 
or service vessels79, including 
subsidies to boat building or 
shipbuilding facilities for these purposes. 
 
 (b) Subsidies the benefits of which are 
conferred on transfer of fishing or 
service vessels to third countries, 
including through the creation of joint enterprises with third country partners. 
 
 (c) Subsidies the benefits of which are 
conferred on operating costs of fishing 
or service vessels (including licence fees or similar charges, fuel, ice, bait, 
personnel, social charges, insurance, 
gear, and at-sea support);  or of landing, handling or in- or near-port 
processing activities for products of 
marine wild capture fishing;  or subsidies to cover operating losses of 
such vessels or activities. 
  (d) Subsidies in respect of, or in the form 
of, port infrastructure or other physical 
port facilities exclusively or predominantly for activities related to 
marine wild capture fishing (for 
example, fish landing facilities, fish storage facilities, and in- or near-port 
fish processing facilities). 
 
 (e) Income support for natural or legal 
persons engaged in marine wild subsidies that they consider to be most closely linked to 
overcapacity and overfishing.   
 Regarding specific types of subsidies  included in the 
various subparagraphs of the list, subparagraph (c), 
covering subsidies to operating costs , and 
subparagraph (d), covering subsidies to port 
infrastructure , including in- or near-port processing 
facilities have attracted the most attention.    
Concerning subsidies to operating costs , including for 
fuel, bait and ice, opinions vary widely.  A number of 
delegations – including certain developed and 
developing Members – do not consider that such 
subsidies contribute to overcapacity .  Of particular 
concern to many delegations in this regard is the 
proposed prohibition of fuel subsidies .  In their view, 
prohibiting fuel su bsidies would be unacceptable, as it 
would effectively deprive their fishers of their 
livelihood by making it impossible for them to continue 
fishing.  In this context, developing country delegations 
emphasize in particular the importance to the 
achievement of their development goals of fuel subsidies in the fisheries sector.  Similarly, certain 
developed country delegations also emphasize the 
importance to their coastal fishing communities of fuel subsidies.  All of these delegations take the view that, in 
well-managed fisheries, fuel subsidies will have no 
impact on overfishing.     
Other delegations, however, consider that any 
prohibition that omits fuel subsidies would be 
unacceptable.  In their view,  a prohibition that did not 
cover fuel subsidies would be ineffective in disciplining 
subsidies that contribute to overcapacity and overfishing, and thus would be inconsistent with the 
mandate from Ministers.  They consider fuel subsidies 
to be at the very heart of the problem of overfishing, as they allow boats to stay on the water longer, without 
regard for the true costs and benefits involved, than 
would be possible without the subsidies.   
 
With respect to subsidies to port infrastructure ,   TN/RL/W/232
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in transshipment. 
 7This comprises, inter alia , engines, fishing gear, fish-
processing machinery or any other equipment onboard the vessel. The 
prohibition does not cover the installation of equipment for safety or for 
control and enforcement purposes.  Neither does the prohibition cover 
equipment fitted for the purpose of  reducing environmentally harmful 
emissions.  ]] 
 
 
 
  
[[ 1.1 This Annex provides for specific provisions regarding 
fisheries subsidies and it is an integral part of the Agreement on 
Subsidies and Countervailing Measures (ASCM). 
1.2 This Annex shall not apply to inland fisheries1 and to 
aquaculture.2 
 
1.3 This Annex covers any subsidy ─ as defined in 
Article 1 of the ASCM ─ given to or on behalf of any company 
and/or person linked in fact or in law, directly or indirectly3, to 
harvesting activities of capture fisheries ("fishery subsidy").  
Fisheries subsidies shall enco mpass any subsidy programme 
and/or the disbursement made under such programme. 
 
1.3.1 In case of a government-to-government 
payment for access by foreign vessels to 
fishing resources of a developing country’s 
maritime jurisdiction4 or to quotas or any other 
rights established by any regional fishery 
management organization or arrangement 
("access rights"), a fishery subsidy shall be 
deemed to exist if a benefit is conferred in the 
onward transfer of those access rights from the paying government. 
1.3.2 "Public services of fisheries resource 
management" shall not be considered a fishery subsidy.
5 
 
2.1 A Member shall neither grant nor maintain any fishery subsidy. 
_____________________ 
 1"Inland fisheries" are fisheries which are carried out in 
freshwater or estuaries of a Member and whose target species are those capture fishing. 
 
 (f) Price support for products of marine 
wild capture fishing.   
 
 (g) Subsidies arising from the further 
transfer, by a payer Member 
government, of access rights that it has 
acquired from another Member government to fisheries within the 
jurisdiction of such other Member.
80 
 
 (h) Subsidies the benefits of which are 
conferred on any vessel engaged in 
illegal, unreported or unregulated fishing.
81 
 I.2 In addition to the prohibitions listed in 
paragraph 1, any subsidy referred to in 
paragraphs 1 and 2 of Article 1 the benefits of 
which are conferred on any fishing vessel or fishing activity affecting fish stocks that are in 
an unequivocally overfished condition shall be 
prohibited. 
 
______________________ 
 77 Subsidies referred to in this provision shall not be 
prohibited when limited to the relief of a particular natural 
disaster, provided that the subsid ies are directly related to the 
effects of that disaster, are limited to the affected geographic 
area, are time-limited, and in the case of reconstruction 
subsidies, only restore the affected area, the affected fishery, 
and/or the affected fleet to its pre-disaster state, up to a 
sustainable level of fishing ca pacity as established through a 
science-based assessme nt of the post-disaster status of the 
fishery.  Any such subsidies are subject to the provisions of 
Article VI. 
 78 For the purposes of this Agreement, the term 
"fishing vessels" refers to vessels  used for marine wild capture 
fishing and/or on-board processing of the products thereof. 
 79For the purposes of this Agreement, the term 
"service vessels" refers to vessels  used to tranship the products 
of marine wild capture fishing from fishing vessels to on-shore 
facilities;  and vessels used fo r at-sea refuelling, provisioning 
and other servicing of fishing vessels. some delegations  – including certain developed and 
developing Members – consider that all subsidies to 
port infrastructure should fall outside of the 
prohibition .  Many of these delegations question 
whether there is any link between infrastructure 
subsidies and overcapacity or overfishing , and thus 
consider that this proposed prohibition goes beyond the 
mandate from Ministers.  Some of these delegations 
also point to the difficulty of distinguishing the provision of "general infrastructure", which is not a 
subsidy covered by the SCM Agreement, from subsidies 
for infrastructure "exclusively or predominantly for activities related to marine wild capture fishing", which 
are proposed for prohibition, particularly where the 
subsidised infrastructure serves activities in addition to marine wild capture fishing.  In their view, this 
uncertainty is a further reason why such subsidies 
should not be prohibited.  A number of developing country delegations have indicated that subsidies to port 
infrastructure, including in- or near-port processing 
facilities, are essential to their economic development.  
They emphasize the economic linkages of fish 
processing activities, including job creation and increases in the level of t echnology in the sector.  
Certain delegations (including some developed  country 
delegations) also consider that subsidies to fishing port infrastructure are necessary to support communities and 
provide employment in remote areas, where the 
populations tend to be economically and socially disadvantaged. 
 
Other delegations, however, strongly believe that the 
infrastructure subsidies referred to in the 
Chairman's text should be prohibited as proposed.   
In their view, the prohibition is drafted sufficiently 
narrowly to capture only infrastructure subsidies 
directly targeted to fishing activities, such that the 
question of their specificity would not be in doubt.  Furthermore, they consider that such a prohibition is 
necessary, as infrastructure subsidies account for a very 
high percentage of all subsid ies to the fisheries sector, 
and relieve the fishing industry of a substantial cost that 
otherwise it would need to bear.  They thus consider  TN/RL/W/232 
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that spend all of their life-cycle therein. 
 2"Aquaculture" is the farming of aquatic organisms, including 
fish, molluscs and crustaceans, provided that no capture fisheries is 
used to feed raised fish or is farmed. 
 3The term "directly or indirectly" is used in this Annex in the 
same sense as it is used in para graph 1 of Article XVI of GATT 1994. 
 4"Maritime jurisdiction" encompasses the Territorial Sea and 
the Exclusive Economic Zone, which ar e defined in the United Nations 
Convention of the Law of the Sea (UNCLOS). 
 5"Public services" are all services supplied in the exercise of 
governmental authority, which is carried out neither on a commercial 
basis nor in competition with other se rvices suppliers.  "Public services 
of fisheries resource management" are any governmental public service 
supplied with the objective of impr oving the management of fisheries 
resources.  ]] 
 
  
 
[[ 1.     Except as otherwise provided in this Annex, a subsidy1 
that confers a benefit on enterprises engaged in the harvesting of 
marine wild capture fisheries shall be prohibited.2 
 ______________________ 
 1"Subsidy" as used in this Annex is  a subsidy within the meaning of 
paragraph 1 of Article 1 of the Agre ement on Subsidies and Countervailing 
Measures (ASCM).  A subsidy subject to this Annex must be specific within the 
meaning of Article 2 of the ASCM.    
 2"Harvesting" includes the on-vessel processing of fish and transport 
of fish from one vessel to anot her or from a vessel to shore.   ]] 
    
[[ 
1.     The following subsidies12, granted for enterprises 
engaged in harvesting of marine13 wild fish , shall be prohibited, 
except as otherwise provided in this Annex:   
 
(a) subsidies for the acquisition, and construction 
of fishing vessels, unless: 
 
(i) they are granted for the replacement 
of fishing capacity following a natural 
and environmental disaster where  80 Government-to-government payments for access to 
marine fisheries shall not be deemed to be subsidies within the 
meaning of this Agreement. 
 81 The terms "illegal fishi ng", "unreported fishing" 
and "unregulated fishing" shall have the same meaning as in 
paragraph 3 of the International Plan of Action to Prevent, 
Deter and Eliminate Illegal Unreported and Unregulated 
Fishing of the United Nations Food and Agricultural 
Organization.   
 that these subsidies contribute directly to 
overfishing , and that to leave them out of the 
prohibition would be contrary to the mandate.    
Concerning the provision allowing subsidies to restore 
a fishery following a natural disaster , some 
delegations have suggested broadening this so as to 
allow subsidies following other kinds of disasters, for 
example man-made and en vironmental disasters, 
and economic crises .  Other delegations, however, 
consider that the drafting should be tightened to 
prevent the creation of ov ercapacity using subsidies .  
 
Another provision commented upon by certain 
delegations was the proposed prohibition of subsidies 
in the form of income and price support .  Some 
delegations consider that these forms of subsidies do not 
contribute to overcapacity, and they regard them as 
essential components of their social welfare/safety 
net programmes.  Other delegations agree that such 
subsidies should be prohibited , but seek a clarification 
of the relationship of that proposed prohibition with the 
horizontal disciplines of the SCM Agreement.
 
 
 
With respect to the prohibition of subsidies in respect 
of "unequivocally overfished" fisheries , some 
delegations consider this provision to be too wide-
ranging, and to impose an unclear obligation .  They 
question both the meaning of the term "unequivocally 
overfished", and by whom such a determination in 
respect of a given fishery would be made.  They further consider that in any case, th is provision is not necessary 
given that the horizontal disciplines of the SCM 
Agreement would apply, and given the general discipline in Article IV of the Chairman's text.   
 
Other delegations consider that this provision is a 
crucial element of the proposed disciplines .  In their 
view, prohibiting subsidies in respect of overfished 
fisheries is necessary given that the proposed 
prohibition takes the form of a positive list.  They 
consider that all Members can  agree that no subsidies   TN/RL/W/232
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fleet capacity has been reduced so that 
a capacity is restored to the proper 
level not exceeding its pre-disaster state;  or 
 
(ii) they are granted as incentives
14 for 
reducing existing fishing capacity, 
where the gross tonnage of the new 
vessel is reduced by at least 50 per cent of the sum of the gross tonnage 
of the withdrawn vessels in the same 
fishery category
15;  and there are in 
place fisheries management control 
measures, including enforcement 
mechanisms, designed to prevent over-fishing in the targeted fishery, 
such as limited entry systems, catch 
quotas, limits on fishing effort or allocation of exclusive quotas to 
vessels, individuals and/or groups.   
 
(b) subsidies for the vessel modification, unless:   
 
(i) there is no increas e in gross tonnage, 
volume of fish hold, and engine power 
of the fishing vessel;  or 
 
(ii) the modification is undertaken for the 
improvement of crew safety or on-board accommodation to comply with 
national or international standards, 
without increasing volume of fish hold and engine power of the fishing 
vessel.   
 
(c) subsidies granted for shipbuilding yards 
contingent upon the construction of fishing 
vessels;   
 
(d) subsidies for promoting a permanent transfer of 
fishing vessels to non-participants
16 of regional 
fisheries management organizations17 as an 
attempt to avoid international rules and should be allowed where a fishery already is overfished, 
and that the standard set by the draft text 
("unequivocally overfished") is high – although some of them view it as too high.  A number of delegations on 
all sides of the issue co nsider that the term 
"unequivocally overfished" should be clarified.  In this regard, a proposal from three delegations ( see, 
TN/RL/GEN/155/Rev.1)  suggests amending this 
language in the Chairman's text to refer to fisheries "declared" to be overfished , in particular to take 
account of the situation in tropical waters.   
 
  TN/RL/W/232 
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regulations of fishery operations;  and 
 
(e) subsidies granted for a vessel engaged in 
illegal, unreported and unregulated fishing.18   
 
______________________ 
 12A subsidy subject to this Anne x must be specific within the 
meaning of Article 2 of this Agreement. 
 13The term "marine" includes bot h anadromous (e.g., salmon) 
and catadromous (e.g., eels) species that spend a significant part of their 
life cycle in saltwater. 
 14Governmental support for vesse l replacement, including 
construction or purchase of new vessels , is assumed as a form of such 
incentives. 
 15The term "same fishery category" means a group of fishing 
operations targeting for the same species. 
 16The term "non-participants" means the countries who are 
neither contracting parties nor c ooperating non-contra cting parties, 
entities or fishing entities.   
 17The term "regional fisherie s management organizations" 
mean regional or sub-regional fisher ies management or ganizations or 
arrangements. 
 18The term "illegal, unreported a nd unregulated fishing" shall 
be interpreted in accordance with the definition set out in paragraph 3 
of the International Plan of Action to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulate d Fishing of the United Nations 
Food and Agricultural Organization (FAO).  ]] 
 
 
 
 
[[ 1.1 This Annex provides for specific provisions regarding 
fisheries subsidies and it is an integral part of the Agreement on 
Subsidies and Countervailing Measures (ASCM).   
1.2 A subsidy as used in this Annex is a subsidy within the 
meaning of paragraph 1 of Article 1 of the Agreement on Subsidies and Countervailing Measures (ASCM).  A subsidy 
subject to this Annex must be specific, pursuant to Article 2 of 
the ASCM.   
1.3 This Annex shall not apply to inland fisheries
1 or to 
aquaculture.2   
1.4 This Annex covers any subsidy that confers a benefit to   TN/RL/W/232
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or on behalf of any company and/or person linked in fact or in 
law, directly or indirectly3, to enterprises engaged in the 
harvesting of marine wild capture fisheries.  Fisheries subsidies 
shall encompass any subsidy programme and/or the 
disbursement made under such programme.   
1.5 Harvesting includes the on-vessel processing of fish 
and transport of fish from one vessel to another or from a vessel to shore, but it does not include inland or on-shore processing or other post-harvest handling or activity.   
1.6 This Annex does not cover government-to-government 
payments to obtain access for a Member's distant water fishing 
fleet to fisheries resources within the territorial sea or exclusive economic zone of a developing country, or to quotas or other 
rights established by any regional fishery management 
organization (RFMO) or arrangement.  The further transfer of such rights to the Member's fishing fleet is covered by this 
Annex but is not actionable under Article 3, provided that:   
 
(a) a benefit is not conferred by the onward 
transfer of such rights to the Member's fishing 
fleet, in that the Member's fleet pays 
compensation comparable to the value of the 
access of the resource;   
 
(b) the access arrangements provide for 
compliance with applicable fishery 
management plans and for a science-based 
assessment and monitoring of the status of the 
fishery resources covered by the access arrangements;  and 
 
(c) such payments are notified pursuant to 
Article 6 herein.   
 
2.1  Except as provided in this Annex, and without 
prejudice to Article 3 of the ASCM, the following subsidies, 
within the meaning of Article 1 of the ASCM and this Annex, 
shall be prohibited within the meaning of Article 3 of the 
ASCM:   TN/RL/W/232 
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(a)  subsidies granted, in law or in fact, whether 
solely or as one of several other conditions, 
for the purpose of vessel construction of any 
fishing vessel4;  
 
(b)  subsidies granted, in law or in fact, whether 
solely or as one of several other conditions, 
for the purpose of modernization, renovation, 
repair or upgrading of existing fishing vessels, including engine or gear acquisition, any 
technical or electronic equipment
5 onboard the 
vessel, and any other significant capital inputs to fishing;  
 
(c)  subsidies granted, in law or in fact, whether 
solely or as one of several other conditions, 
for the purpose of fixed or variable operational 
costs of fishing vessels and fishing activities, including on-board processing;  
 
(d)  subsidies granted, in law or in fact, whether 
solely or as one of several other conditions, 
for shipbuilding yards contingent upon the 
construction of fishing vessels; 
 
(e)  subsidies granted, in law or in fact, whether 
solely or as one of several other conditions, 
relating to illegal, unreported and unregulated 
fishing,
6 as well as to any fishing vessels 
flying "flags of convenience"; and 
 
(f)  subsidies granted, in law or in fact, whether 
solely or as one of several other conditions, 
upon the transfer of fishing vessels to foreign 
owners, including through the creation of joint 
ventures with those countries. 
 
2.2 A Member shall neither grant nor maintain subsidies 
referred to in paragraph 1. 
 
2.3 Whenever a Member has reason to believe that a 
prohibited subsidy is being granted or maintained by another   TN/RL/W/232
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Member as defined in Article 2.1 of this Annex and without 
prejudice to Article 3 of the ASCM, such Member may seek 
remedies in accordance with  Article 4 of the ASCM. 
 
 
_______________________ 
 1 "Inland fisheries" are fisheries which are carried out in 
freshwater or estuaries of a Member and whose target species are those 
that spend all of their life-cycle therein.   
 2 "Aquaculture" is the farming of aquatic organisms, 
including fish, molluscs and crust aceans, provided that no capture 
fisheries is used to feed raised fish or is farmed.   
 3 The term "directly or indirectly" is used in this Annex in the 
same sense as it is used in para graph 1 of Article XVI of GATT 1994. 
 4 For the purpose of this Annex, fishing vessel means any 
vessel intended for use for the purpos e of commercial exploitation of 
fishing resources, including fish pr ocessing vessels a nd vessels engaged 
in transshipment. 
 5 This comprises, inter alia, engines, fishing gear, fish-
processing machinery, fish-finding t echnology, refrigerators, machines 
for sorting or cleaning fish, or any other equipment onboard the fishing 
vessel.  The prohibition does not cover the installation of equipment for 
safety or for control and enforcement purposes.  Neither does the 
prohibition cover equipment fitted for the purpose of reducing 
environmentally ha rmful emissions. 
 6 The term "illegal, unreported and unregulated fishing" shall 
be interpreted in accordance with the definition set out in paragraph 3 
of the International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and Unregulate d Fishing of the United Nations 
Food and Agricultural Organization (FAO).  
]] 
 
  
 
 
[[ I.1 Except as provided for in Articles II and III, or in the 
exceptional case of natural disaster relief7, the following 
subsidies within the meaning of paragraph 1 of Article 1, to the 
extent they are specific within the meaning of paragraph 2 of 
Article 1, shall be prohibited: 
 
 (a) Subsidies the benefits  of which are conferred 
on the acquisition, construction, repair, 
renewal, renovation, modernization, or any 
other modification of fishing vessels8 or  TN/RL/W/232 
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service vessels9, including subsidies to boat 
building or shipbuilding facilities for these 
purposes. 
 
 (b) Subsidies the benefits  of which are conferred 
on transfer of fishing or service vessels to third countries, including through the creation 
of joint enterprises with third country partners. 
  (c) Subsidies the benefits  of which are conferred 
on operating costs of fishing or service vessels 
(including licence fees or  similar charges, fuel, 
ice, bait, personnel, social charges, insurance, 
gear, and at-sea support);  or of landing, 
handling or in- or near-port processing activities for products of marine wild capture 
fishing;  or subsidies to cover operating losses 
of such vessels or activities. 
 
 (d) Subsidies in respect of, or in the form of, port 
infrastructure or other physical port facilities 
exclusively or predominantly for activities 
related to marine wild capture fishing (for example, fish landing facilities, fish storage 
facilities, and in- or near-port fish processing 
facilities). 
 
 (e) Income support for natural or legal persons 
engaged in marine wild capture fishing. 
 
 (f) Price support for products of marine wild 
capture fishing.   
 
 (g) Subsidies arising from the further transfer, by 
a payer Member government, of access rights that it has acquired from another Member 
government to fisheries within the jurisdiction 
of such other Member.
10 
 
 (h) Subsidies the benefits  of which are conferred 
on any vessel engaged in illegal, unreported or 
unregulated fishing.11 
   TN/RL/W/232
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I.2 In addition to the prohibitions listed in paragraph 1, any 
subsidy referred to in paragraphs 1 and 2 of Article 1 the 
benefits of which are conferred on any fishing vessel or fishing activity affecting fish stocks that  are declared to be in an over 
fished condition shall be prohibited. 
______________________ 
 7Subsidies referred to in this provision shall not be prohibited 
when limited to the relief of a particular natural disaster, provided that 
the subsidies are directly related to the effects of that disaster, are 
limited to the affected geographic area, are time-limited, and in the case 
of reconstruction subsidies, only restore the affected area, the affected 
fishery, and/or the affected fleet to its pre-disaster state, up to a 
sustainable level of fish ing capacity as established through a science-
based assessment of the post-disaster status of the fishery.  Any such 
subsidies are subject to th e provisions of Article VI. 
 8For the purposes of this Ag reement, the term "fishing 
vessels" refers to vessels used for marine wild capture fishing and/or 
on-board processing of the products thereof. 
 9For the purposes of this Agreement, the term "service 
vessels" refers to vessels used to tr anship the products of marine wild 
capture fishing from fishing vessels to on-shore facilities;  and vessels 
used for at-sea refuelling, provisi oning and other servicing of fishing 
vessels. 
 10 Government-to-government paym ents for access to marine 
fisheries shall not be deemed to be subsidies within the meaning of this 
Agreement. 
 11The terms "illegal fishing", "unreported fishing" and 
"unregulated fishing" shall have the same meaning as in paragraph 3 of 
the International Plan of Action to Prevent, Deter and Eliminate Illegal 
Unreported and Unregulated Fishi ng of the United Nations Food and 
Agricultural Organization.   ]] 
  TN/RL/W/232 
Page C-14  
Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
GENERAL EXCEPTIONS  
 
[[3.1. The following subsidies are permitted: 
 
(a) Subsidies contingent upon a reduction in 
fishing capacity or that are provided for 
the specific purpose of mitigating the 
negative social and economic 
consequences of reductions in capacity;  
(b) Subject to a non increase in capacity, 
subsidies that are granted in the context of conservation measures, for product 
development, for modernisation of 
vessels including improved working conditions and safety on board, and 
subsidies that promote more 
environmentally friendly fishing operations. 
 
3.2. Subsidies covered by paragraph 1 of this Article shall not be subject to Article 2 of this Annex and Parts III 
and V of the SCM Agreement.  
]] 
 
 
 
 
[[ Provided that they are notified in accordance with 
Article 25, nothing in Article 3 bis shall prevent the 
adoption of: 
 (a) subsidies to aquaculture1 activities, 
provided that there are no capture 
fisheries involved;   
 
 (b) subsidies for vessel decommissioning 
programmes, provided that: 
 
  (i) the vessels subject to such 
programmes are scrapped or II. Notwithstanding the provisions of Article I, and 
subject to the provision of Article V: 
 
 (a) For the purposes of Article I.1(a), 
subsidies exclusively for improving 
fishing or service vessel and crew safety 
shall not be prohibited, provided that: 
 
  (1) such subsidies do not involve 
new vessel construction or vessel acquisition; 
 
  (2) such subsidies do not give rise 
to any increase in marine wild 
capture fishing capacity of any 
fishing or service vessel, on the 
basis of gross tonnage, volume 
of fish hold, engine power, or on any other basis, and do not 
have the effect of maintaining in 
operation any such vessel that otherwise would be withdrawn;  
and  
   (3) the improvements are 
undertaken to comply with 
safety standards.  
 
 (b) For the purposes of Articles I.1(a) and 
I.1(c) the following subsidies shall not be prohibited: 
 
  subsidies exclusively for:  (1) the 
adoption of gear fo r selective fishing 
techniques;  (2) the adoption of other 
techniques aimed at reducing the 
environmental impact of marine wild 
capture fishing;  (3) compliance with fisheries management regimes aimed at Concerning the general exceptions , some delegations 
consider that many of the exceptions proposed are too 
narrowly defined and the conditions attached to them 
too restrictive.   Some of these delegations consider that 
the fact that non-prohibited fisheries subsidies would 
remain actionable under the ho rizontal subsidy rules of 
the SCM Agreement would mi tigate any negative 
effects  that such subsidies might cause, such that the list of 
exceptions should be expanded and the conditionalities 
relaxed (or, some suggest, removed altogether).  Other Members consider that the management conditionalities 
associated with the general exceptions alleviate the need 
for tailoring the exceptions narrowly.   In their view, 
provided that properly-functioning fisheries management 
systems are in place, fisheries subsidies will make little 
contribution to overcapacity and overfishing.  Other 
delegations seeking broader general exceptions suggest 
that all of the managemen t requirements may not be 
necessary in respect of each exception,  as in their view 
some of the subsidies covered by general exceptions have 
no possibility to contribute to overcapacity and overfishing.   
 
A number of  other delegations, ho wever, consider that 
for the disciplines to be effective any general exceptions 
must be limited in number and scope, and subject to 
strict conditionalities.  While recognizing the need for 
certain general exceptions, including for capacity reduction 
programmes, environmental improvements, and 
transitional assistance for di splaced fishworkers, these 
delegations consider that all subsidies to the fisheries 
sector, regardless of their expressed purpose, have the 
potential to circumvent the prohibition and contribute to overcapacity and overfishing.  They thus consider that the 
approach to general exceptions in the Chairman’s text is 
appropriate, and that if an ything the drafting should be 
tightened.  In this regard, some delegations made detailed 
drafting suggestions to close perceived potential loopholes, for example to tighten what th ey consider to be the overly-  TN/RL/W/232
 Page C-15Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
otherwise permanently and 
effectively prevented from 
being used for fishing anywhere in the world; 
 
  (ii) the fish harvesting rights 
associated with such vessels are 
permanently revoked and may 
not be reassigned; 
 
  (iii) the owners of such vessels are 
required to relinquish any claim associated with such vessels 
that could qualify such owners 
for any present or future harvesting rights in any fishery; 
and 
   (iv) there are in place fisheries 
management control measures 
designed to prevent over-fishing 
in the targeted fishery, such as 
limited entry systems, catch quotas, limits on fishing effort 
or allocation of exclusive quotas 
to vessels, individuals and/or groups. 
 
 (c) subsidies for resear ch to inform fisheries 
management decision makers, including 
data collection, surveys, data analysis, 
and stock monitoring, sampling and assessment; 
 
 (d) subsidies for fisheries stock 
enhancement, marine conservation, and 
marine protection, including marine 
environment restoration, hatcheries for breeding, artificial reefs and by-catch 
mitigation devices; 
 
 (e) subsidies for acce ss to the fisheries 
resources of developing countries; sustainable use and conservation (e.g., 
devices for Vessel Monitoring Systems);  
provided that the subsidies do not give rise to any increase in the marine wild 
capture fishing capacity of any fishing or 
service vessel, on the basis of gross tonnage, volume of fish hold, engine 
power, or on any other basis, and do not 
have the effect of maintaining in operation any such vessel that otherwise 
would be withdrawn. 
  (c) For the purposes of Article I.1(c), 
subsidies to cover personnel costs shall 
not be interpreted as including: 
 
  (1) subsidies exclusively for re-
education, retraining or redeployment of fishworkers
82 
into occupations unrelated to 
marine wild capture fishing or 
directly associated activities;  
and 
 
  (2) subsidies exclusively for early 
retirement or permanent cessation of employment of 
fishworkers as a result of 
government policies to reduce marine wild capture fishing 
capacity or effort.   
  (d) Nothing in Article I shall prevent 
subsidies for vessel decommissioning or 
capacity reduction programmes, provided that: 
 
  (1) the vessels subject to such 
programmes are scrapped or 
otherwise permanently and 
effectively prevented from being 
used for fishing anywhere in the 
world; broad language of the exception covering subsidies for the 
adoption of techniques aimed at reducing the 
environmental impact of fishing.  
In connection with the condition in a number of the general 
exceptions that the subsidies in question not give rise to any increase in capacity, a number of delegations have 
questioned whether the physical vessel parameters in the 
Chairman’s text are adequate.  Suggestions in this regard 
include referring to “fishing effort” instead.   
 
In terms of individual proposed general exceptions , 
delegations wishing to broaden these exceptions have 
noted particular concerns with the items covering 
subsidies for retraining and redeployment of 
fishworkers, and for retirement or permanent cessation 
of marine wild capture fishing  in the context of 
government capacity reduction programmes.  These delegations consider that there are a number of other 
“social safety net” programmes that also should benefit 
from a general exception, including payments to 
fishworkers during closed seas ons, or for other temporary 
cessations of fishing activity, and for training of fishworkers who remain in the fishing sector, including 
subsidies for reeducation or retraining of fishworkers to 
switch to sustainable fishing operations.  Other 
delegations, however, disagree that any of these types of 
payments should be excepted from the prohibition.  In 
their view, such payments contribute to the problem of overcapacity by maintaining an active fisheries workforce 
that is too large for the fish supply.  
 A number of delegations seeking broader drafting for 
certain items listed in the Chairman’s text also are calling 
for an expanded list of general exceptions .  Most 
frequently suggested in this context are general exceptions 
for subsidies to “small scale” fisheries, for fuel, and for 
research and development .   Advocates of a general 
exception for subsidies to small-scale fisheries emphasize 
that developed as well as developing Members have 
fishing communities in remote areas that are socially and 
economically marginalized, a nd that all Members thus 
should have the possibility to provide fisheries subsidies in  TN/RL/W/232 
Page C-16 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
these communities.  One Member presented a proposal to 
modify the list in the Chairman’s text to include an 
exception for de minimis  subsidies i.e., based on “small 
programmes”, available to a ll Members, to address this 
issue ( See, TN/RL/GEN/156).   Other delegations, 
including numerous developing country delegations, disagree.  Some consider that the only exception for small-
scale fisheries should be in the form of S&D treatment for 
developing Members.  Others consider that a general exception for small-scale fisheries would open a 
substantial loophole in, and thus undermine, the 
disciplines.    
Delegations seeking exceptio ns for subsidies for fuel, 
and for research and development, argue that such subsidies should be permitted as they do not contribute 
to overcapacity.   Other delegations consider that fuel 
subsidies are a major contributor to overfishing  and 
thus should be prohibited.  Concerning subsidies for 
"research and development", some delegations consider 
that certain subsidies for R& D already are covered by the 
general exceptions and that an expansion of this category 
thus is not necessary.  Others would accept an exception for research subsidies provided to research institutions but 
oppose any exception allowing the provision of such 
subsidies to private entities.   
  (f) subsidies to the construction and 
maintenance of infrastructure for: 
   (i) fishing communities, such as 
the provision of housing, 
transport infrastructure, water and sanitary waste systems; 
 
  (ii) wharves and port facilities for 
vessel moorage, loading, 
unloading, cleaning, sanitation 
and repair; and 
 
  (iii) transport in frastructure, water 
and sanitary waste systems serving processing facilities for 
fisheries products. 
  (g) subsidies for unemployment relief, early 
retirement, worker retraining or re-
education, and alternative employment 
assistance for fishermen; 
  (h) subsidies for the replacement of fishing 
capacity following a natural disaster 
where fleet capacity has been reduced, provided that capacity is not restored 
beyond its pre-disaster state; 
  (i) subsidies to artisanal fishing
2; and 
 
 (j) subsidies aimed solely at improving 
vessel and crew safety3, provided that:  
 
  (i) there is no increase to the 
volume of fish hold or engine 
power of a vessel subject to 
such programmes; and 
 
  (ii) the improvement is undertaken 
to comply with international or 
domestic standards. 
  
  (2) the fish harvesting rights 
associated with such vessels, whether they are permits, 
licences, fish quotas or any other 
form of harvesting rights, are permanently revoked and may 
not be reassigned; 
  (3) the owners of such vessels, and 
the holders of such fish 
harvesting rights, are required to 
relinquish any claim associated with such vessels and harvesting 
rights that could qualify such 
owners and holders for any present or future harvesting 
rights in such fisheries;  and 
   (4) the fisheries management 
system in place includes 
management control measures 
and enforcement mechanisms 
designed to prevent overfishing in the targeted fishery.  Such 
fishery-specific measures may 
include limited entry systems, catch quotas, limits on fishing 
effort or allocation of exclusive 
quotas to vessels, individuals and/or groups, such as 
individual transferable quotas. 
                (e)  Nothing in Article I shall prevent 
governments from making user-specific 
allocations to individuals and groups under limited access privileges and other 
exclusive quota programmes. 
 _____________________ 
 82 For the purpose of this Agreement, the term 
"fishworker" shall refer to an individual employed in marine wild 
capture fishing and/or direc tly associated activities.  
    TN/RL/W/232
 Page C-17Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 2. Governmental activity directly associated with the 
creation and implementation of fisheries management 
systems4, and the enforcement of  fisheries management 
rules shall not be treated as fisheries subsidies. 
 
______________________ 
 1Aquaculture is the farmi ng of aquatic organisms, 
involving intervention in the rearing process to enhance 
production. 
 2Artisanal fishing is a traditional fishing activity related 
to the subsistence of fishermen and their families.  Artisanal 
fishing is performed on an in-shore basis with non-automated 
gear-retrieval devices. 
 3Programmes or activities ai med primarily at vessel 
modernisation or repair do not fall  within this sub-paragraph.  
The construction of vessels is not permitted under this sub-
paragraph. 
 4This comprises the establishment and administration of 
management systems (including a llocating and monitoring fishing 
licences, permits, quot a, vessel numbers and catch returns); 
adjusting management settings w ithin an existing management 
system; and developing amendments or additions to the existing 
management system .]] 
 
  
 
[[ Footnote 7 – [...] The prohibition does not cover the 
installation of equipment for safety or for control and 
enforcement purposes.  Neither does the prohibition cover 
equipment fitted fro the purpose of reducing 
environmentally harmful emissions.  ]]  See also, 
Prohibition section.  
 
 
 
 
[[ 3.1 The following fisheries subsidies, provided the 
conditions set out in this paragraph are properly fulfilled, 
shall not fall under the prohibition set out in Article 2:   
 
 (a) subsidies providing a social safety net for 
fishermen:  
    TN/RL/W/232 
Page C-18 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
(i) early retirement schemes;  
(ii) re-education, training or 
alternative employment assistance;  
(iii) social programmes;  
(iv) life insurance; and/or 
(v) livelihood income support to 
compensate for unemployment 
or for the suspension of capture fishery activities; 
 
 (b) subsidies for fisheries research, including 
data collection, surveys, data analysis, 
and stock monitoring, sampling and 
assessment; 
 
 (c) subsidies related to fisheries stock 
enhancement, including marine conservation and protection, marine 
environment restoration, artificial reefs 
and by-catch mitigation devices; 
 
 (d) subsidies aimed solely at improving 
vessel and crew safety6, provided that the 
improvement is undertaken to comply 
with international or domestic standards;  
  (e) subsidies for vessel capacity reduction 
programmes, provided that the:   
 
  (i) vessels subject to such 
programmes are scrapped or otherwise permanently and 
effectively prevented from 
being  used for fishing anywhere 
in the world;   
 
  (ii) fish harvesting rights associated 
with such vessels, whether they 
are permits, licenses, fish quotas 
or any other form of harvesting rights, are permanently revoked 
and may not be reassigned;  and   TN/RL/W/232
 Page C-19Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
  (iii) owners of such vessels, and the 
holders of such fish harvesting rights, are required to relinquish 
any claim associat ed with such 
vessels and harvesting rights that could qualify such owners 
and holders for any present or 
future harvesting rights in such fisheries; 
 
 (f) other fisheries subsidies that are 
indirectly linked to harvesting activities 
of capture fisheries, such as fishing port 
facilities and inland processing facilities for fisheries products. 
 
3.2 In case of natural or environmental disasters, the 
prohibition of Article 2 shall temporarily not 
apply, so as to enable governments to provide 
short-term emergency relief and to implement 
recovery adjustment programmes.  
______________________ 
 6Programmes or activities ai med primarily at vessel 
modernisation or repair do not fall  within this sub-paragraph.  
The construction of vessels is not permitted under this sub-
paragraph.  ]] 
   
 
[[ 2.1 Nothing in Article 1 of this Annex shall prevent 
government assistance for:   
 
 (a) vessel decommissioning programmes, 
provided that: 
 
  (i) the vessels subject to such 
programmes are scrapped or 
otherwise permanently and 
effectively prevented from being used for fishing anywhere 
in the world;  TN/RL/W/232 
Page C-20 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
  (ii) the fish harvesting rights 
associated with such vessels are permanently revoked and may 
not be reassigned; 
   (iii) the owners of such vessels are 
required to relinquish any claim 
associated with such vessels that could qualify such owners 
for any present or future 
harvesting rights in any fishery; and 
 
  (iv) there are in place fisheries 
management control measures 
designed to prevent over-fishing 
in the targeted fishery, such as limited entry systems, catch 
quotas, limits on fishing effort 
or allocation of exclusive quotas 
to vessels, individuals and/or 
groups. 
 
 (b) assistance and user-s pecific allocations to 
individuals and groups under limited access privileges and other exclusive 
quota programmes;  
  (c) research to inform fisheries management 
decision makers, including data 
collection, surveys, data analysis and stock monitoring, sampling and 
assessment; 
  (d) measures that enhance marine resources 
rather than capacity to harvest those 
resources, such as fisheries stock enhancement, marine conservation and 
marine protection, including marine 
environment restoration, hatcheries for 
breeding, artificial reefs and by-catch 
mitigation devices;   TN/RL/W/232
 Page C-21Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
 (e) the construction and maintenance of 
infrastructure for fishing communities, such as the provision of housing, 
roadways and water and sanitary waste 
systems; 
   
 (f) unemployment relief, early retirement, 
worker retraining or re-education, life insurance, support for the temporary 
suspension of fishing activities and 
alternative employment assistance for fishermen; 
 
 (g) the replacement of fishing capacity 
following a natural disaster where fleet 
capacity has been reduced, provided that 
capacity is not restored beyond its pre-disaster state;  and 
 
 (h) the improvement of vessel and crew 
safety
3, provided that:  
   (i) there is no increase to fishing 
capacity, such as the volume of 
fish hold or engine power of a vessel subject to such 
programme; and 
   (ii) the improvement is undertaken 
to comply with international or 
domestic standards. 
 
2.2 This Annex does not cover government-to-
government payments to ob tain access for a Member's 
distant water fishing fleet to fisheries resources within the 
exclusive economic zone of another country.  The further 
transfer of those access rights to  the Member's fishing fleet 
is covered by this Annex but is not prohibited under 
Article 1, provided that: 
 
 (i) the Member's fishing fleet pays 
compensation comparable  to the cost the  TN/RL/W/232 
Page C-22 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
fleet would otherwise have to pay for 
access to the fisheries resources; 
  (ii) the terms and conditions of access, 
including the compensation paid by the 
fishing fleet, are published; and 
 
 (iii) the access arrangement provides for a 
science-based assessment and monitoring of the status of the fisheries resources in 
question and for compliance with 
applicable fishery management systems.    
2.3 Government funding of services directly related to 
fisheries management, including data collection and analysis for fisheries science, management and 
enforcement, the pr otection and restoration of marine 
habitats, the development and implementation of fisheries management measures, and the monitoring and 
enforcement of fishery regulati ons are not covered by this 
Annex.
4 
______________________ 
 3Programme or activities aimed primarily at vessel 
modernization or repair do not fa ll within this sub-paragraph.  
The construction of vessels is not permitted under this sub-
paragraph. 
 4Fisheries management includ es the establishment and 
administration of mana gement systems (incl uding allocating and 
monitoring fishing licences, perm its, quota, vessel numbers and 
catch returns); adjusting management settings within an existing 
management system; and developi ng amendments or additions to 
the existing management system.  ]] 
 
  
 
 
[[ 2. Notwithstanding the provisions of Article 1 of this 
Annex and Parts III and V of this Agreement, the 
following subsidies shall be understood as having no, or at most minimal, trade distorting effects or negative effects 
on fisheries resources management, and thus considered 
non-actionable:     TN/RL/W/232
 Page C-23Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
 (a) government-to-government payments to 
obtain access for a Member's distant water fishing fleet to fisheries resources 
within the exclusive economic zone of 
another country under the following conditions:   
 
(i)  the terms and conditions of 
access, including the 
compensation paid by the fishing 
fleet, are published;  and 
 
(ii)  the access arrangement provides 
for a science-based assessment and monitoring of the status of 
the fisheries resources in 
question and for compliance with applicable fishery 
management systems;   
 
 (b) subsidies for vessel decommissioning 
programmes under the following conditions:   
 
  (i) the vessels subject to such 
decommissions are scrapped or 
otherwise permanently and 
effectively prevented from being used for fishing anywhere 
in the world;   
   (ii) the fish harvesting rights, or 
their sub-allocations, associated 
with such decommissioned vessels are permanently revoked 
and shall not be reassigned;  and 
   (iii) there are in place fisheries 
management control measures, 
including enforcement 
mechanisms, designed to 
prevent over-fishing in the  TN/RL/W/232 
Page C-24 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
targeted fishery, such as limited 
entry systems, catch quotas, 
limits on fishing effort or allocation of exclusive quotas to 
vessels, individuals and/or 
groups.   
 
(c) subsidies for small-scale fisheries, if such 
fisheries meet the following conditions:   
 
(i) the size of fishing vessels is less 
than (XX) meters in length or (YY) gross tons;   
 
(ii) the area of the authorized fishing 
operation is within the territorial 
waters and/or the exclusive 
economic zones;   
 
(iii) there exist registration systems 
of fishing vessel;  and 
 
(iv) there are in place fisheries 
management control measures, 
designed to prevent over-fishing 
in the targeted fishery, which include limited entry systems, 
catch quotas, limits on fishing 
effort or allocation of exclusive quotas to vessels, individuals 
and/or groups;   
  (d) government expenditures for the 
construction and maintenance of general 
infrastructure for fishing communities, such as the provision of housing, 
roadways, water and sanitary waste 
systems, and fishing port facilities;   
 
 (e) government expenditures for social 
safety net for fishermen, including 
unemployment relief, early retirement, 
worker training or education, fishery   TN/RL/W/232
 Page C-25Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
insurance covering life and injury for 
workers and damage for boats and gears, 
payment for relief from natural disaster or similar environmental/economic 
changes, support for the temporary 
suspension of fishing activities, and alternative employment assistance for 
fishermen;   
  (f) government expenditures for research on 
fisheries management, including data 
collection, surveys, data analysis, stock monitoring, sampling and assessment;  
and 
  (g) government expenditures for measures 
that enhance marine resources rather than 
capacity to harvest those resources, such as fisheries stock enhancement, marine 
conservation and marine protection, 
including marine environment 
restoration, hatcheries for breeding, 
artificial reefs and by-catch mitigation 
devices.  
]] 
 
 
   
[[ 
3.2     Except as provided in this Annex, and without 
prejudice to Parts III and V of the ASCM and Articles 2 
and 3.1 herein, the following subsidies, within the meaning 
of Article 1 of the ASCM and this Annex, shall be 
considered as actionable within the meaning of Article 5 of 
the ASCM: 
(a) Vessel decommissioning programmes, 
unless:   
(i) the vessels subject to such 
programmes are scrapped or otherwise permanently and  TN/RL/W/232 
Page C-26 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
effectively prevented from 
being  used for fishing 
anywhere in the world;7  and 
(ii) the fish harvesting rights 
associated with such vessels, whether they are permits, 
licenses, fish quotas or any 
other form of harvesting rights, are permanently 
revoked and may not be 
reassigned;  and 
(iii) the owners of such vessels, 
and the holders of such fish harvesting rights, are 
required to relinquish any 
claim associated with such vessels and harvesting rights 
that could qualify such 
owners and holders for any 
present or future harvesting 
rights in such fisheries;  and 
(iv) there are in place fisheries 
management plan designed to prevent over-fishing in the 
targeted fishery, such as 
limited entry systems, catch quotas, limits on fishing 
effort or allocation of 
exclusive quotas to vessels, individuals and/or groups, 
provided that special 
flexibility should be given to developing countries, 
including any technical 
assistance requested by any such developing country as 
provided in Article 5 below. 
(b) subsidies granted, in law or in fact, 
whether solely or as one of several other 
conditions, where there is an increase in   TN/RL/W/232
 Page C-27Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
the subsidizing Member's capacity to 
produce a fishery product due to the 
subsidy. 
 (c) subsidies granted, in law or in fact, 
whether solely or as one of several other 
conditions, where there is an increase in the subsidizing Member's relative share 
of production of a fishery product, as 
compared to non-subsidized production, over a representative period sufficient to 
demonstrate clear trends in production.   
3.3       The list of actionable subsidies in section 3.2 above 
is merely illustrative, and does not limit the general rule 
expressed in section 3.1 above.  
 
4.1 Notwithstanding Articles 2 and 3 of this Annex, the following subsidies are not actionable:   
  (a) Provision of a social safety net for 
fishermen, including early retirement 
schemes, re-education, training or alternative employment assistance, 
unemployment relief, life insurance, 
support for the temporary suspension of fishing activities;   
 
 (b) Fisheries research, including data 
collection, surveys, data analysis, and 
stock monitoring, sampling and 
assessment;
8   
 
 (c) Fisheries stock enhancement, including 
marine conservation and protection, 
marine environment restoration, 
protection and development of a Member's own archipelagic waters
9, 
artificial reefs, hatcheries for breeding 
and by-catch mitigation devices;10   
 
 (d) Improving vessel and crew safety11, 
provided that the improvement is  TN/RL/W/232 
Page C-28 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
undertaken to comply with international 
or domestic standards; and there is no 
increase in fishing capacity12, such as the 
volume of fish hold or engine power of a 
vessel subject to such programme;   
  (e) Construction and maintenance of general 
infrastructure for fishing activities, such 
as wharves and fishing ports and related facilities, roadways, water and sanitary 
waste systems, the provision of housing 
and other forms of community development infrastructure;
13   
 
 (f) Short-term emergency relief, recovery 
adjustment programmes and replacement 
of fishing capacity following natural or 
environmental disasters, provided that fishing fleet capacity is not restored 
beyond its pre-disaster state
14, except that 
special flexibility shall be given to 
developing countries pursuant to 
Article 5 of this Annex;   
 
 (g) Assistance and us er-specific allocations 
to individuals and groups under limited access privileges and other exclusive 
quota programmes, and other expenses 
related to administration and operation of fishery management programmes, 
including allocation and monitoring of 
licences, permits, quotas, vessel numbers and catch returns.    
________________________ 
 7Vessels decommissioned for legitimate research and 
training purposes, with no comme rcial functions, need not 
comply with the conditions of this exception.    
                       8This is limited to fisheries research that does not result 
in commercial sale of the fish harvested.   
 9Archipelago is as defined in Article 46 of UNCLOS 
1982, and calculation of the archip elagic baselines is defined in 
Article 47 thereof. 
 10This provision is aimed at  measures that enhance   TN/RL/W/232
 Page C-29Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
marine resources rather than capacity to harvest those resources. 
 11Programmes or activities aimed primarily at vessel 
modernisation or repair do not fall  within this sub-paragraph.  
The construction of vessels is not permitted under this sub-
paragraph.   
 12Fishing capacity is unders tood here to mean the 
ability of a vessel or fleet of vessels to catch fish. 
 13General infrastructure for fishing communities shall 
also not be considered to be regionally specific under the ASCM. 
 14Restoration to pre-disaster state is not intended to 
restore a pre-disaster state of over-capacity.  ]] 
 
 
 
 
 
[[ II.     Notwithstanding the provisions of Article I, and 
subject to the provision of Article V:   
 
 (a) … 
 
(f) Nothing in Article I shall prevent a 
Member from providing subsidies 
referred to in Article I that do not 
otherwise fall under the provisions of this Article or Article III, 
provided that  
 
(1)  the subsidies are 
exclusively in support of 
fisheries conducted within waters subject to its jurisdiction, 
and 
 (2)  the annual amount of 
such subsidies per Member 
provided under this exception does not exceed X% of the 
average landed value of fish 
harvested in these waters for the 
three preceding years for which 
data is available.  
]] 
   TN/RL/W/232 
Page C-30 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
 
[[ II. Notwithstanding the provisions of Article I, and 
subject to the provision of Article V: 
 
 (a) For the purposes of Article I.1(a), 
subsidies exclusively for improving fishing or service vessel and crew safety 
shall not be prohibited, provided that: 
 
  (1) such subsidies do not involve 
new vessel construction or vessel acquisition; 
 
  (2) such subsidies do not give rise 
to any increase in marine wild 
capture fishing capacity of any 
fishing or service vessel, on the basis of gross tonnage, volume 
of fish hold, engine power, or 
on any other basis, and do not have the effect of maintaining in 
operation any such vessel that 
otherwise would be withdrawn;  and  
 
  (3) the improvements are 
undertaken to comply with 
safety standards.  
 
 (b) For the purposes of Articles I.1(a) and 
I.1(c) the following subsidies shall not be prohibited: 
 
  subsidies exclusively for:  (1) the 
adoption of gear fo r selective fishing 
techniques;  (2) the adoption of other 
techniques aimed at reducing the environmental impact of marine wild 
capture fishing;  (3) compliance with 
fisheries management regimes aimed at sustainable use and conservation (e.g., 
devices for Vessel Monitoring Systems);    TN/RL/W/232
 Page C-31Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
provided that the subsidies do not give 
rise to any increase in the marine wild 
capture fishing capacity of any fishing or service vessel, on the basis of gross 
tonnage, volume of fish hold, engine 
power, or on any other basis, and do not have the effect of maintaining in 
operation any such vessel that otherwise 
would be withdrawn. 
 
 (c) For the purposes of Article I.1(c), 
subsidies to cover personnel costs shall not be interpreted as including:    
 
  (1) subsidies exclusively for re-
education, retraining or 
redeployment of fishworkers
12 
into occupations unrelated to marine wild capture fishing or 
directly associated activities;  
and 
 
  (2) subsidies exclusively for early 
retirement or permanent 
cessation of employment of 
fishworkers as a result of government policies to reduce 
marine wild capture fishing 
capacity or effort.   
 
 (d) Nothing in Article I shall prevent 
subsidies for vessel decommissioning or capacity reduction programmes, provided 
that: 
   (1) the vessels subject to such 
programmes are scrapped or 
otherwise permanently and effectively prevented from being 
used for fishing anywhere in the 
world; 
 
  (2) the fish harvesting rights  TN/RL/W/232 
Page C-32 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
associated with such vessels, 
whether they are permits, 
licences, fish quotas or any other form of harvesting rights, are 
permanently revoked and may 
not be reassigned; 
 
  (3) the owners of such vessels, and 
the holders of such fish harvesting rights, are required to 
relinquish any claim associated 
with such vessels and harvesting rights that could qualify such 
owners and holders for any 
present or future harvesting rights in such fisheries;  and 
 
  (4) the fisheries management 
system in place includes 
management control measures 
and enforcement mechanisms 
designed to prevent overfishing 
in the targeted fishery.  Such fishery-specific measures may 
include limited entry systems, 
catch quotas, limits on fishing effort or allocation of exclusive 
quotas to vessels, individuals 
and/or groups, such as individual transferable quotas. 
 
 (e) Nothing in Article I shall prevent 
governments from making user-specific 
allocations to individuals and groups 
under limited access privileges and other exclusive quota programmes. 
______________________ 
 12For the purpose of this Agreement, the term 
"fishworker" shall refer to an in dividual engaged in marine wild 
capture fishing and/or direc tly associated activities.  ]] 
 
 
   TN/RL/W/232
 Page C-33Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
SPECIAL AND DIFFERENTIAL TREATMENT  
 
 
[[ 27 bis.1The prohibition of Article 3 bis shall not apply 
to fisheries subsidies provided by a developing country 
Member where such subsidies do not exceed the de 
minimis level for that Member.  [To be elaborated, 
including the possibility of further flexibilities for 
LDCs.]  ]] 
 
 
[[ 6.1 Except where provided otherwise, the provisions 
of this Annex do not apply to a developing country 
Member for as long as such Me mber does not, as from the 
entry into force of this Annex, increase its fishing capacity, 
to an extent that it is an impediment to the sustainable 
exploitation of fishery resources worldwide.   
6.2 Any Member can refer the matter whether such an 
impediment is taking place or is imminent, as the case may 
be, to the Permanent Group of Experts established under 
Article 24.3 of the SCM Agreement.  ]] 
 
  
 
[[2. Notwithstanding the provisions of paragraph 1 of 
this Annex, developing country Members may grant 
subsidies as set out under paragraph 1.1 to fishing vessels 
with an overall length of 20 metres or less and whose main area of operation is within that Member’s area of fisheries 
jurisdiction extending up to 12 nautical miles from the 
baselines.  Members shall, through their domestic law, ensure that this requirement is  enforced after the subsidy is 
granted. 
3. A developing country Member may nevertheless 
grant such subsidies as are listed in paragraph 1.1 to 
fishing vessels with an overall length of 28 metres or less, III.1 The prohibition of Article 3.1(c) and Article I 
shall not apply to least-developed country ("LDC") 
Members. 
 III.2 For developing country Members other than LDC 
Members: 
 (a) Subsidies referred to in Article I.1 shall 
not be prohibited where they relate 
exclusively to marine wild capture fishing performed on an inshore basis 
(i.e., within the territorial waters of the 
Member) with non-mechanized net-retrieval, provided that (1) the activities 
are carried out on th eir own behalf by 
fishworkers, on an individual basis which may include family members, or 
organized in associations;  (2) the catch is 
consumed principally by the fishworkers 
and their families and the activities do 
not go beyond a small profit trade;  and 
(3) there is no major employer-employee relationship in the activities carried out.  
Fisheries management measures aimed at 
ensuring sustainability, such as the measures referred to in Article V, should 
be implemented in respect of the fisheries 
in question, adapted as necessary to the 
particular situation, including by making 
use of indigenous fisheries management institutions and measures.   
 (b) In addition, subject to the provisions of 
Article V: 
 
  (1) Subsidies referred to in 
Articles I.1(d), I.1(e) and I.1(f) shall not be prohibited. 
 
  (2) Subsidies referred to in 
Article I.1(a) and I.1(c) shall not There is general agreement among delegations that new 
fisheries subsidies disciplines must include provisions 
for substantial special an d differential treatment  for 
developing Members.  There are different views, however, over the nature and extent of such provisions, as discussed 
below. 
 
Concerning least-developed country ("LDC") Members, 
most if not all delegation s consider appropriate the 
proposed blanket exception  for subsidies granted by 
LDCs. 
 
Concerning developing Members other than LDCs, 
delegations generally agree that the S&D provisions 
should not amount to a "blank check" , i.e., an unlimited 
and unconditional right to provide fisheries subsidies.  
Views differ considerably, howe ver, as to which types of 
otherwise prohibited subsidies should be permitted, as 
well as the respectiv e conditionalities  that should be 
attached thereto.   
 In this regard, a large number of delegations, especially 
developing country delegations, consider the draft 
provisions to be too narrow, and subject to too many 
conditionalities , to be usable in practical terms.  Some of 
these delegations take the view that developing countries 
did not cause the current situation of global overfishing, 
and also argue that there are underexploited fisheries 
resources in their waters, for which reasons inter alia  
developing Members should be allowed to provide 
fisheries subsidies in the context of their development 
policies, given the importance in their economies of fishing and fisheries products in terms of food, employment and 
income.  Other delegations take the view that the 
difficulties identified in the S&D text stem from the 
excessive breadth of the prohibition , and that a major 
part of the solution would be in appropriately narrowing 
the prohibition.  Another group of  delegations, however, 
considers that the draft te xt strikes an appropriate  TN/RL/W/232 
Page C-34 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
for the purpose of exploiting underutilised fish stocks 
within its area of fisheries jurisdiction, provided that any 
build-up of fishing capacity is consistent with a comprehensive resource management plan based on 
scientific advice for the sustainable management and 
exploitation of such fish stocks.  The management and exploitation plan shall have been approved by an 
internationally recognised competent management or 
scientific body and the approved plan shall be notified in 
accordance with paragraphs 5, 6 and 7 of this Annex.  
]] 
 
  
 
[[4.1 Notwithstanding the provisions set out in 
Articles 2 and 3, developing country Members 
shall be allowed to grant or maintain fisheries 
subsidies to:   
 
 (a) fishing activities related to the 
subsistence and livelihood of the fishermen and their families
7, including 
the provision of goods and services by a 
government under the form of infrastructure, other than general 
infrastructure, benefiting those fishermen 
and their families; 
 
 (b) fishing vessel construction, repair or 
vessel modernization or gear acquisition or improvement, provided that the 
purpose is to exploit: 
   (i) fisheries in the Member’s 
maritime jurisdiction; 
   (ii) or high seas fishing quotas or 
any other rights established by a 
regional fisheries management 
organization (RFMO) or a 
regional fisheries management arrangement. be prohibited provided that they 
are used exclusively for marine 
wild capture fishing employing decked vessels not greater than 
10 meters or 34 feet in length 
overall, or undecked vessels of any length. 
 
  (3) For fishing and service vessels 
of such Members other than the 
vessels referred to in paragraph 
(b)(2), subsidies referred to in Article I.1(a) shall not be 
prohibited provided that (i) the 
vessels are used exclusively for marine wild capture fishing 
activities of such Members in 
respect of particular, identified target stocks within their 
Exclusive Economic Zones 
("EEZ");  (ii) those stocks have 
been subject to prior scientific 
status assessment conducted in accordance with relevant 
international standards, aimed at 
ensuring that the resulting capacity does not exceed a 
sustainable level;  and (iii) that 
assessment has been subject to peer review in the relevant body 
of the United Nations Food and 
Agriculture Organization ("FAO")
83. 
 
III.3 Subsidies referred to in Article I.1(g) shall not be prohibited where the fishery in question is within the EEZ 
of a developing country Member, provided that the 
agreement pursuant to which th e rights have been acquired 
is made public, and contains provisions designed to 
prevent overfishing in the area covered by the agreement 
based on internationally-recognized best practices for 
fisheries management and conservation as reflected in the 
relevant provisions of international instruments aimed at balance between substantial flexibility for developing 
Members to provide subsidies in keeping with their 
development needs, and necessary conditionalities to ensure that the subsidized activities are sustainable.  
Certain delegations emphasize that all Members should 
accept a meaningful level of disciplines, as all would benefit from doing so given that the problems of 
overcapacity and overfishing are global, threatening the 
long-term livelihoods of fishers in all countries.   
Regarding the exception for subsidies to subsistence-
oriented fisheries  (Article III.2(a)), some developing 
country delegations consider that this category is 
drafted too narrowly and in overly-restrictive terms .  
They consider that it should be broadened beyond 
subsistence-oriented fisheries, to cover all artisanal 
fisheries and small-sc ale commercial fisheries .  To this 
end, some suggest removi ng the references to the 
employer-employee and family relationships, consumption of the catch, small profit trade, and lack of mechanization.  
Other suggestions in this regard are that management 
conditionalities remain indicative but that the references to 
international management instruments be replaced by 
references to indigenous institutions.  Other delegations 
oppose any broadening of this exception .  They indicate 
that they can accept what they consider to be an almost 
unconditional carve-out for this category of fisheries subsidies only because the cate gory itself is very narrowly 
defined.  For these delegations, any expansion of this 
category would need to be  accompanied by stronger 
management conditionalities .   
 
Concerning the other exceptions proposed for non-LDC 
developing Members  (Article III.2(b)(1)-(3)), here as well 
many developing country delegations object to the 
limitations contained in the draft text .  In particular, 
many consider that drawing a distinction on the basis of 
vessel length as to the kinds of subsidies that would be 
permitted and the conditionalities that would be attached is inappropriate.  Some suggest instead criteria based on the 
characteristics of the fishing activities.  Some consider that 
if boat length is to be used, it should be expanded  from   TN/RL/W/232
 Page C-35Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
 (c) fuel, bait and/or ice supplied for fishing 
activities. 
______________________ 
 7Those activities are performed at an in-shore basis with 
non-automatic net-retriever devices, provided that (a) the 
activities are carried out by fishermen, on an individual basis or 
organized in associations, incl uding, but not necessarily, the 
family members;  (b) the basic scope of the activities 
encompasses both family livelihood and a small profit trade;  and 
(c) there is no major employer-employee relationship on the 
activities carried out.  ]] 
 
 
  
 
[[5. For purposes of this Annex, in addition to the 
provisions of Articles 27 of this Agreement and paragraph 
4 of Article 3 and paragraph 3 of Article 4 of this Annex, 
developing country Members may employ the following treatment:   
 
5.1 The vessel reduction requirement in paragraph (a)(ii) of Article 1, which provide that "the gross tonnage 
of the new vessel is reduced by at least 50 per cent of the 
sum of the gross tonnage of the withdrawn vessels in the same fishery category" shall not apply to developing 
country Members if such a developing country Member 
possesses monitoring, controlling, and surveillance 
measures to ensure that the ar eas of fishing operations of 
such vessel, newly acquired or constructed under the subsidy program, are within its territorial waters or 
exclusive economic zones.   
 5.2 The requirements fo r fisheries management 
control measures for small-scale fisheries, provided in 
paragraph (c)(iv) of Article 2, shall not apply to developing country Members during the period of (_) years after the 
date of entry into force of this Annex.   
 
[Provisions for a developing country 
Member, which possesses export ensuring the sustainable use and conservation of marine 
species, such as, inter alia , the Agreement for the 
Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 
Relating to the Conservation and Management of 
Straddling Fish Stocks and Highly Migratory Fish Stocks ("Fish Stocks Agreement "), the Code of Conduct on 
Responsible Fisheries of the Food and Agriculture 
Organization ("Code of Conduct "), the Agreement to 
Promote Compliance with International Conservation and 
Management Measures by Fishing Vessels on the High 
Seas ("Compliance Agreement "), and technical guidelines 
and plans of action (including criteria and precautionary 
reference points) for the implementation of these 
instruments, or other related or successor instruments.  These provisions shall includ e requirements and support 
for science-based stock asse ssment before fishing is 
undertaken pursuant to the agreement and for regular assessments thereafter, for management and control 
measures, for vessel registries, for reporting of effort, 
catches and discards to the national authorities of the host 
Member and to relevant international organizations, and 
for such other measures as may be appropriate.    
III.4 Members shall give due regard to the needs of 
developing country Members in complying with the requirements of this Annex, including the conditions and 
criteria set forth in this Article and in Article V, and shall 
establish mechanisms for, and facilitate, the provision of technical assistance in this regard, bilaterally and/or 
through the appropriate international organizations.   
______________________ 
 83 If the Member in question is not a member of the 
FAO, the peer review shall take place in another recognized and 
competent international organization.   
 the 10 meters in the draft text to 24-25 meters , such that 
subsidies could be provided to operate as well as to 
construct or modify such longer vessels.  Concerning the area of operations within which subsidization would be 
permitted, some developing country delegations consider 
that the proposed limitation to within the Member's 
exclusive economic zone ("EEZ") is inappropriate,  inter 
alia because this term has no legal status for certain WTO 
Members, because of the existence of bilateral fishing agreements between neighbouring Members, and because 
this parameter is artificial where straddling and highly 
migratory fish stocks are concerned.    
In this context, certain delegations h ave proposed that 
developing Members also be permitted to subsidize 
both vessel construction and operating costs for high 
seas fishing operations under quotas of regional fisheries 
management organizations, and for fishing under access 
arrangements.  Some developing country Members have 
indicated support for this proposed allowance of subsidies 
for fishing outside of a Member's EEZ, but only in cases 
where the targeted stock is highly migratory or straddling, 
and is managed in accordance with international fisheries instruments and for which specific quotas or limits have 
been allocated.   Among the delegations seeking various 
relaxations of the definitions and restrictions on the different categories of S&D treatment in the draft text, 
some have stressed that the proposed general discipline 
in Article IV and the proposed management 
conditionalities in V would impose sufficient checks and 
balances , and thus would justify the reduction of 
restrictions that they seek.   
 
Other delegations consider that the multi-tiered 
approach and the overall leve l of disciplines in the S&D 
provisions in the Chairman's text are appropriate.  A 
number of questions and suggestions for clarification have 
been raised, however.  These include questions as to the 
usefulness of boat length as a parameter for calibrating 
subsidy disciplines, because of difficulty of enforcement 
and ease of circumvention, and concerns over whether the 
conditions and criteria as drafted are sufficient to ensure 
that any new capacity built with subsidies not go beyond a  TN/RL/W/232 
Page C-36 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
competitiveness defined in Article 27.6 
of the ASCM, relating to products 
originated from marine capture fisheries, 
will be further developed.]   ]] 
 
 
  
[[ 5.1 Notwithstanding the provisions of the ASCM and 
Articles 2, 3, and 4 of this Annex, a developing country 
Member shall be allowed to grant or maintain fisheries 
subsidies to its artisanal fisheries activities15, defined 
herein as those which:    
 (a) Operate within its territorial waters and 
mostly close to shore;   
 
 (b) Use vessels of [proportional ratio 
between gross tonnage and engine 
power] and which utilize primarily 
manual gear;  and 
 (c) Are operated by individual fishermen or 
family members for the purpose of 
subsistence or local trade.
   
 
 Such subsidies are not actionable. 
   
5.2 Notwithstanding the provisions of the ASCM and 
Articles 2, 3, and 4 of this Annex, a developing country 
Member shall be allowed to grant or maintain subsidies to its small-scale fisheries for the purpose of fishing vessel 
construction, repair, or modernization, or gear acquisition 
or improvement, or fuel, or bait, or ice.  For the purposes of this section, small-scale fisheries shall be defined as 
those that:   
  (a) Are below 20 meters dimension;  and 
 
 (b) Operate within the Member's 12 nautical 
mile limit or the Member's own 
archipelagic waters.   
 sustainable level in relation to the targeted fish stocks.  
Many of these delegations see a clear distinction 
between allowing developing Members to provide subsidies to build up their own fleets to exploit their 
own fish stocks on the one hand, and allowing them to 
subsidize operating costs for those fleets, on the other 
hand .  A number of these Members also reject the idea 
that any Member, developing or developed, be allowed 
to provide subsidies for fishing on the high seas , and 
thus consider the treatment of this issue in the Chairman's 
text to be appropriate.   
 
Concerning the conditioning of  most S&D provisions in 
the Chairman's text on the management requirements 
in Article V, many developing country delegations consider that the management requirements are so 
strict that the S&D provisions could become difficult if 
not impossible to use in practice.  In this regard, a 
number of developing country delegations have proposed 
changes to these requirements to make them more flexible 
and less prescriptive.  One such suggestion is a "tiered" 
approach to fisheries management by developing 
Members , with indicative management for subsistence 
fisheries, limited management requirements for "small-
scale commercial" fisheries, and full management 
requirements only for larger-s cale commercial fisheries.  It 
also has been suggested that the management 
conditionalities pertaining to subsidies for port 
infrastructure, income and price support and subsidies to processing activities should be voluntary, rather than 
mandatory.  Certain other delegations have proposed 
(see, TN/RL/GEN/155/Rev.1) removing from the text 
altogether the links between S&D provisions and 
management conditionalities  based on internationally-
recognized best practices, and replacing them with references to indigenous ma nagement in stitutions.   
Several delegations have concerns over the requirements 
relating to "prior scientific status assessment" of stocks, and peer review thereof, in relation to subsidies for the 
acquisition, construction, modernization, etc. of larger 
vessels.  Some note that in multi-species tropical fisheries, 
the concept of "identified target stocks" often is not 
relevant or applicable.  Othe rs indicate that for systemic   TN/RL/W/232
 Page C-37Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 Provided that they meet the contingencies of 
Article 5.5 of this Annex, such subsidies are not 
actionable .   
 
5.3 Notwithstanding the provisions of the ASCM and 
Articles 2, 3, and 4 of this Annex, a developing country 
Member shall be allowed to grant or maintain subsidies for the purpose of fishing vessel construction, repair, or 
modernization, or gear acquisition or improvement, or fuel, 
or bait, or ice, provided that the purpose is to exploit:    
 (a) fisheries in the Member's own Exclusive 
Economic Zone;  or 
 
 (b) rights held by the Member in high seas 
fishing quotas or any other rights established by a regional fisheries 
management organization (RFMO) or a 
regional fisheries management 
arrangement.   
  Provided that they meet the contingencies of 
Article 5.6, of this Annex such subsidies are not 
actionable.   
 
5.4 Upon the request of developing country Members, 
and with reference to guidance provided by the UN Fish Stocks Agreement, developed country Members shall 
provide technical assistance on  mutually agreed terms and 
conditions to developing country Members to allow them to participate fully in an y RFMO adjacen t to their 
exclusive economic zone or archipelagic waters.   
 5.5 Fishing subsidies meet the definition of 
Article 5.2 of this Annex cont ingent on a showing that:   
  (a) The Member has a fishery management 
plan in place that is effectively 
monitored and adequately enforced;   
 
 (b) The fishery does not adversely affect 
resources governed by the fishery 
management plan; and reasons, they cannot agree to  reviews of Members' stock 
assessments being conducted by an outside organization, 
the FAO.  ( See also comments in Fisheries Management 
section.) 
 
 
Some other delegations, in cluding certain developing 
country delegations , while recognizing that the 
conditionalities are demanding, particularly for low-income developing Members, consider that strong 
management requirements must be the basis for any 
exceptions , whether general exceptions or S&D, but 
consider that the provisions as drafted could be streamlined 
and clarified.  Yet others are of th e view that the 
management provisions as dr afted build in sufficient 
flexibility to accommodate the needs and realities of all 
Members, developing as well as developed.   
 For many developing country delegations, government-
to-government payments fo r access are important and 
they applaud the exemption in the Chairman's text of 
subsidies arising from the onward transfer of such 
access rights .  Some delegations have suggested that the 
text in this area should refer not only to EEZs, but also to 
multilaterally-managed fisheries.  A proposal from three 
delegations ( see, TN/RL/GEN/155/Rev.1) suggests 
amending the Chairman's text to explicitly indicate that 
developing countries have the right to access the waters of 
other developing countries.  
Regarding technical assistan ce, many delegations have 
indicated that this is a criti cal need, and have welcomed 
the inclusion in the draft text  of a provision addressing it.  
Many stressed the importance of obtaining technical and 
financial assistance specifically for establishing and operating fisheries management systems.  A number of 
developing country delegations have indicated that the 
draft provision should be strengthened , and a group of 
delegations submitted a proposal ( see, TN/RL/GEN/158)  
to redraft the provision in the Chairman's text so as to, inter 
alia, require the provision of t echnical assistance to assist 
developing Member to implement their obligations under 
new disciplines.  Some delegations are concerned,  TN/RL/W/232 
Page C-38 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
 (c) The small-scale fishing activities will not 
adversely affect fishery resources of other Members or the resources governed 
by relevant RFMO's
.   
 
5.6 Fishing subsidies meet the definition of Article 5.3 of this Annex contingent on a showing that the 
developing country Member has:   
 
 (a) underexploited resources in its EEZ;  or 
  (b) a right to high seas fishing quotas or 
extra quota in a RFMO. 
 5.7 Upon the request of developing country Members, 
developed country Members shall provide technical 
assistance to developing country Members on mutually agreed terms and conditions to develop the capacity to 
initiate, implement and enforce compliance with a fishery 
management plan in keeping with the FAO Code of Conduct on Responsible Fisheries and adequate to provide 
the showing required by Articles 5.3, 5.4 and 5.5 of this 
Annex.   
_____________________ 
 15Artisanal fisheries activities shall include on-board 
handling (including but not limited to provision of cool boxes, 
fish holds and other measures to encourage hygiene and 
sanitation and to preserve fi sh quality) and post-harvest 
handling.  ]] 
 
 
 
 
[[ X.1 Notwithstanding Article Y [prohibition] and 
subject to the conditions set forth in this Article, 
developing country Members shall be allowed to 
maintain or grant the following fisheries subsidies: 
(a) for fishing vessel construction, however, over the prospect that provision of technical 
assistance to implement the management conditionalities 
for providing subsidies would constitute, in effect, technical assistance for subsidizing.  Other delegations, 
while recognizing the legitimate needs of developing 
Members for technical assistan ce, wish to ensure that 
any provisions in the new di sciplines take full account 
of existing mechanis ms and institutions .  Some 
delegations consider that the draft text strikes the right balance.   
 
   TN/RL/W/232
 Page C-39Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
acquisition, repair, modification or 
modernization, including gear 
acquisition or improvement; or 
(b) to support the operation of fishing fleets 
(such as supply of fuel, bait or ice);  or 
(c) to fishing activities related to the 
subsistence and livelihood of the 
fishermen and their families.1 
X.2 The subsidies referred to X.1 (a) and (b) above 
may be only maintained or granted when the 
Member specifically determines that its domestic 
fishing capacity2 is reasonably lower than 
necessary to harvest a sustainable allowable 
catch3 of: 
(a) non-overexploited stocks4 located 
exclusively in the Member's maritime 
areas;5 or 
(b) fishing quotas6 or any other rights7 
agreed within the framework of a 
regional fisheries management 
organization or arrangement, which 
operates under a fisheries management 
system that is based on relevant international standards and practices, 
provided that the Member is a coastal 
State in the managed region.   
X.3 A Member that grants or maintains subsidy 
programmes pursuant to X.1 (a) or (b) shall 
ensure that, even if fully utilized, the resulting fishing capacity
8 is below than necessary to 
harvest a sustainable allowable catch of the 
exploited stock and results in no more than moderate exploitation so that limited potential for 
further non-subsidized expansion of production 
remains.  TN/RL/W/232 
Page C-40 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
X.4 The fisheries subsidies referred to in paragraph 
X.1 (a) or (b) shall be subject to compliance with 
the provisions on notifica tion and transparency in 
Article XXX.9 
__________________________________ 
              1 Those activities are performed exclusively within the 
Territorial Sea, with non-auto matic gear-retriever devices, 
provided that (a) the activities are carried out by fishermen, on an 
individual basis or organized in associations, including, but not 
necessarily, the family members; (b) the basic scope of the activities encompasses both famil y livelihood and a small profit 
trade; and (c) there is no majo r employer-employee relationship 
on the activities carried out. 
 
2"Domestic fishing capacity" means the capacity of 
fishing vessels flagged by a Member, owned by companies 
constituted under the domestic law of that Member, and operated 
by crews the members of which are in the majority nationals of 
that Member. 
 3 "Sustainable allowable catch" means a total allowable 
catch below levels which are capable of producing a long term 
maximum sustainable yield, based on the best scientific evidence 
available. 
 4 "Overexploited stocks" sha ll mean all fish stocks 
except those target stocks that are being exploited below levels 
which are capable of producing a long term maximu m sustainable 
yield (including the ones with no or almost no fishing activities), 
based on the best scientific evidence available. 
 5 "Maritime areas" encompasses the Territorial Sea, the 
Exclusive Economic Zone and the Continental Shelf, as defined 
in the United Nations Conven tion of the Law of the Sea 
(UNCLOS). 
 6 The term "quotas" means enforceable quantitative 
limits, established thr ough scientific assessmen t, applicable on 
fish volumes for specified period. 
 7 The term "any other ri ghts" means the Member’s 
rights to fish stocks (including th ose with no or almost no fishing 
activities), that are being exploited below levels which are 
capable of producing a long term maximum sustainable yield and 
for which no specific quota has b een established but are within 
constant monitoring by the relevant regional fisheries 
organizations or arrangements. 
 8 "Resulting fishing capacity" means the total capacity 
authorized by the Member for the fishing of a stocks or group of stocks in its maritime areas, namely the domestic fishing capacity   TN/RL/W/232
 Page C-41Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
plus the capacity of other vessels authorized by the Member to 
fish in its maritime areas. 
 9 Additional flexibilities should be provided for in the 
case of subsidies granted by leas t developed countries, such as 
longer implementation periods unde r "Transitional Provisions".  
Provisions should also be made  for technical assistance to 
developing countries that need it in order to comply with the 
provisions on notification.  ]] 
 
 
 
 
[[ III.1 The prohibition of Article 3.1(c) and Article I 
shall not apply to least-developed country ("LDC") 
Members.  
III.2 For developing country Members other than LDC 
Members:  
 (a) Subsidies referred to in Article I.1 shall 
not be prohibited where they relate exclusively to marine wild capture 
fishing performed within the territorial 
waters of the Member without deploying any of the internationally recognized 
destructive fishing methods, provided 
that the activities are carried out by fish workers, on an individual basis or  
organized in associations or on 
employment basis.  
 
  It is desirable that adequate measures for 
ensuring sustainability and to prevent 
environment degradation are adapted as 
necessary to the particular situation, by making use of indigenous fisheries 
management institutions and measures.   
 
 (b) In addition,: 
 
  (1) Subsidies referred to in 
Articles I.1(d), I.1(e) and I.1(f) 
shall not be prohibited.   TN/RL/W/232 
Page C-42 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
  (2)  Subsidies referred to in Article 
I.1(a) and I.1 (c  ), shall not be 
prohibited provided that:  
 
   (i)  they are used exclusively 
for marine wild capture 
fishing employing decked 
vessels not greater than 24 meters or 82 feet in length 
overall, or undecked 
vessels of any length; and  
 
  (ii)  adequate measures for 
ensuring sustainability and to prevent environment 
degradation are adapted as 
necessary to the particular situation, by making use of 
indigenous fisheries 
management institutions 
and measures.   
 
  (3) For fishing and service vessels 
of such Members other than the 
vessels referred to in paragraph (b) (2), subsidies referred to in 
Article I.1(a)  and Article I.1(c) 
shall not be prohibited provided that (i) the vessels are used for 
marine wild capture fishing 
activities of such Members in respect of particular, identified 
target stocks within their 
Exclusive Economic Zones ("EEZ");  (ii) the vessels with 
fishing quotas or any other 
rights established by a regional fisheries management 
organization (RFMO) or a 
regional fisheries management 
arrangement;  (iii) the vessels 
for fishing activities in   TN/RL/W/232
 Page C-43Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
accordance with access 
arrangements;  (iv) those stocks 
have been subject to prior scientific status assessment 
conducted in accordance with 
relevant international standards, aimed at ensuring that the 
resulting capacity does not 
exceed a sustainable level.   
  
III.3 Subsidies referred to in Article I.1(g) shall not be 
prohibited where the fishery in question is within the EEZ of a developing country Member, provided that (i) those 
stocks have been subject to prior scientific status 
assessment conducted in acco rdance with relevant 
international standards, aimed at ensuring that the resulting 
capacity does not exceed a sustainable level; (ii) that 
assessment has been subject to  peer review in the SCM 
Committee; (iii) the agreement pu rsuant to which the rights 
have been acquired is made public and (iv) contains 
provisions designed to prevent overfishing in the area 
covered by the agreement based on internationally-
recognized best practices for fisheries management and conservation as reflected in the relevant provisions of 
international instruments aimed at ensuring the sustainable 
use and conservation of marine species, such as, inter alia , 
the Agreement for the Implementation of the Provisions of 
the United Nations Convention on the Law of the Sea of 
10 December 1982 Relating to the Conservation and Management of Straddling Fish Stocks and Highly 
Migratory Fish Stocks ("Fish Stocks Agreement "), the 
Code of Conduct on Responsible Fisheries of the Food and Agriculture Organization ("Code of Conduct "), the 
Agreement to Promote Compliance with International 
Conservation and Management Measures by Fishing Vessels on the High Seas ("Compliance Agreement "), and 
technical guidelines and plans of action (including criteria 
and precautionary reference points) for the implementation of these instruments, or other related or successor 
instruments.  These provisions shall include requirements 
and support for science-based stock assessment before 
fishing is undertaken pursuant to the agreement and for 
regular assessments thereafter, for management and control  TN/RL/W/232 
Page C-44 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
measures, for vessel registries, for reporting of effort, 
catches and discards to the national authorities of the host 
Member and to relevant international organizations, and for such other measures as may be appropriate.   
 
III.4 Members shall give due regard to the needs of developing country Members in complying with the 
requirements of this Annex, including the conditions and 
criteria set forth in this Article and in Article V, and shall establish mechanisms for, and facilitate, the provision of 
technical assistance in this regard, bilaterally and/or 
through the appropriate international organizations.  
]] 
 
 
  
 
[[ III.4.1 Members recognize that developing country 
Members, especially least-developed countries and small, 
vulnerable economies, will f ace serious challenges in 
complying with the requirements of this Annex, in particular as regards the conditions and criteria set forth in 
this Article and in Articles V ("Fisheries Management") 
and VI ("Notifications and Surveillance").   
 
III.4.2 Members recognize that the ability of developing 
country Members, especially least-developed countries and 
small, vulnerable economies, to adopt, implement and 
sustain measures necessary for complying with the 
requirements of this Annex may depend on the effective and timely provision of technical assistance by Members to 
developing country Members in accordance with their 
demands and needs.  Members recognize that developing country Members will have different implementation needs 
and capacities and to this end, developing countries which 
indicate a need for technical a ssistance shall be provided 
with such assistance through bilateral processes, through 
new and/or existing WTO technical assistance and support 
mechanisms and through othe r mechanisms of relevant 
international and regional organisations.   
 III.4.3 The Committee on Su bsidies and Countervailing 
Measures shall establis h a Sub-Committee dealing   TN/RL/W/232
 Page C-45Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
exclusively with issues relate d to technical assistance and 
support programs under this Annex, specifically as regards 
fisheries management systems and measures related thereto.  The Sub- Committee shall coordinate the requests 
from developing country Members for technical assistance 
and support programs and shall review the effectiveness of the technical assistance provid ed to developing country 
Members.
2  The Sub-Committee shall periodically report 
its findings to the Committee on Subsidies and Countervailing Measures and the Committee on Trade and 
Development.
3   
 _______________________ 
 2The Sub-Committee, in consultation with the 
developing Member concerned, shall identify any additional 
needs of that Member for technical assistance and every effort 
shall be made to ensure that appropriate technical assistance is 
provided to that Member.  The role of the Sub-Committee shall 
not be to determine the validity of a developing country's request 
for technical assistance. 
 3Future discussion would be required on the procedures 
to be followed if a developing country member does not receive 
the requested technical assistance.  ]] 
  TN/RL/W/232 
Page C-46  
Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
  
OTHER DISCIPLINES  
  
[[ [Contextual heading: Special provisions] 
 
4. Members shall through their domestic law ensure 
that: 
 
 4.1 Any fishing vessel subject to a 
decommissioning programme is scrapped 
or otherwise permanently and effectively prevented from being used for fishing 
purposes anywhere in the world;  and  
 4.2 any funds or disbursements to a recipient 
benefiting from any such 
decommissioning programme are not 
reinvested in fish ing vessels by the 
recipient.  
]] 
 
  
 
[[ Fishery Adverse Effects  
 
5.1 No Member should cause , through the use of any 
fishery subsidy referred to in Article 3 and Article 4.1 (b) and (c), fishery adverse effect s to the interest of other 
Members.  
 5.2 For the purpose of this Annex, a fishery adverse 
effect shall be deemed to exist if:   
  (a) the Member does not have a national 
fisheries management system in place, 
which may include, inter alia :  
conservation and management measures 
based on the best scientific evidence 
available;  fisheries management control 
measures (fisheries monitoring, 
surveillance, control and enforcement mechanisms);  mechanisms established General Discipline on the Use of Subsidies
 
 
IV.1 No Member shall cause, through the use of any 
subsidy referred to in paragraphs 1 and 2 of Article 1, depletion of or harm to, or creation of overcapacity in 
respect of, (a) straddling or highly migratory fish stocks 
whose range extends into the EEZ of another Member;  or 
(b) stocks in which another Member has identifiable 
fishing interests, including through user-specific quota 
allocations to individuals and groups under limited access privileges and other exclusive quota programmes.  The 
existence of such situations shall be determined taking into 
account available pertinent in formation, including from 
other relevant international organizations.  Such 
information shall include the status of the subsidizing 
Member's implementation of internationally-recognized 
best practices for fisheries management and conservation 
as reflected in the relevant provisions of international instruments aimed at the sustainable use and conservation 
of marine species, such as, inter alia , the Fish Stocks 
Agreement , the C ode of Conduct , the Compliance 
Agreement , and technical guidelines  and plans of action 
(including criteria and precau tionary reference points) for 
the implementation of these instruments, or other related or successor instruments. 
 
IV.2 Any subsidy referred to in this Annex shall be attributable to the Member conferring it, regardless of the 
flag(s) of the vessel(s) involved or the application of rules 
of origin to the fish involved.   Most delegations support the basic purpose of this 
Article, i.e., providing for recourse where a Member’s 
subsidies cause harm to another Member’s fishing 
interests.   Some see this as a key provision of the 
proposed disciplines.   Many participants consider, 
however, that the provision should be clarified in a 
variety of ways , including by defining the concepts of  
“harm to" and "identifiable fishing interests", as well as the 
concepts of capacity and overcapacity, with some 
suggesting incorporating physical measurements such as gross tonnage, or other concepts such as production 
capacity of the fleet or vessel.  Some participants also 
suggest broadening this provision to take account of effects on transboundary fish stocks, discrete high seas fish stocks, 
or possibly all fish stocks. Some participants suggest 
deleting overcapacity as a form  of adverse effects, on the 
basis that overcapacity only relates to potential  negative 
effects of subsidies, and further that as long as the subsidising Member operates sound management, any 
overcapacity resulting from subsidization would not lead to 
negative effects on fish stocks.  Others consider that under various WTO agreements potential harm can be the basis 
for action, and that in the area of fisheries overcapacity 
itself is a present rather than a potential negative effect.     
Other issues identified were who would determine the 
existence of situations of overcapacity, depletion or harm to the concerned fish stocks, and the implications of the 
provision in respect to harm to the fishing interests of non-
WTO Members.  Some delegations queried whether this provision was intended to define fisheries adverse effects 
or actionable subsidies in the fisheries context, and if so 
what relationship if any this provision had to the provisions on actionable subsidies in the SCM Agreement.  In this 
context, some pointed to their own prior proposals in these 
areas.   
   TN/RL/W/232
 Page C-47Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
to identify and quantify fishing capacity;  
vessel registration and licensing system; 
limited entry systems, catch quotas, limits on fishing effort or allocation of 
exclusive quotas to vessels;  and timely 
and reliable statistics available on catch and fishing effort in sufficient detail to 
allow sound statistical analysis
8;  or 
  (b) the volume of the total catch by a 
Member of any "endangered specie"
9 and 
the number of vessels used in those fishing operations are not decreasing, as 
compared to the total catch volume and 
number of vessels it had during the previous year. 
[...] 
 Prevention of circumvention
 
8.1 Members shall not have recourse to rules of 
origin (preferential or non-preferential), the flag 
of a vessel and access rights, among others, as a 
means to undermine the objectives set out in the preamble and to circumvent their 
obligations under this Annex. 
 
_____________________ 
 8 Where relevant international standards and practices 
exist, Members shall use them, or the relevant parts of them, as a basis for their national fish eries management systems.
 
 9 For the purposes of this Annex, "endangered specie" 
shall mean all species except those that are (a) in a very healthy 
situation, with no or almost no fishing activities, or that are being 
exploited below or at a calculated sustainable allowable catch, 
based on the best scientific inform ation available;  or (b) under 
the administration of a RFMO or a regional fisheries management 
arrangement, which operate under a fisheries management system 
that is based on relevant inte rnational standard s and practices.   ]] 
 
 
 
   TN/RL/W/232 
Page C-48 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
[[ Serious Prejudice  
  
3. In addition to the circumstances provided for in Article 6.3 of the ASCM, serious  prejudice may arise in the 
case of subsidies that qua lify for the exceptions in 
Article 2.1 [and Article 4] of this Annex, where the effect 
of the subsidy is: 
 
 (a) an increase in the subsidizing Member's 
capacity to produce the like product;  or 
 
 (b) an increase in the subsidizing Member's 
relative share of production of the like 
product, as compared to non-subsidized 
production over a representative period sufficient to demonstrate clear trends in 
production. 
[...]  
Anti-circumvention
 
 
6. For purposes of this Annex, a prohibited subsidy 
is attributable to the Memb er conferring the subsidy, 
regardless of the flag of the vessel harvesting the fish or 
the application of rules of origin to such fish.  ]] 
 
  
 
 
[[Fisheries subsidies actionable  
 
3.1     No Member shall cause, through the use of any 
fishery subsidy included in paragraphs 1 and 2 of ASCM 
Article 1, adverse effects to the interests of other Members 
as defined in ASCM Article 5 or adverse effects to fishery resources as defined in Article 7.1 to this Annex, except as 
otherwise provided in this Annex.   
 [...] 
 
   TN/RL/W/232
 Page C-49Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
Actionable Subsidies:  Adverse Effects  
 
7.1 For purposes of ASCM Part III, no Member should cause, through the use of any fishery subsidy 
referred to in Article 3 of this  Annex, adverse effects to the 
interests of other Members, which in addition to adverse effects as defined in Article 5 of the ASCM, shall also 
include adverse effects  to a fishery resource
16, i.e.:   
 (a) injury to the fishery resource of another 
Member;
17   
 (b) nullification or impairment of benefits accruing 
directly or indirectly to other Members under 
GATT 1994, in particular the benefits of concessions bound under Article II of GATT 
1994, as a result of an effect on a fishery resource;  
 (c) serious prejudice to a fishery resource of another 
Member.    
 
7.2. The examination of the adverse effects to a 
fishery resource from fishery activity shall include an evaluation of all relevant fishery resource factors, 
including:   
 (a) the total catch or production or trading (in volume 
terms) by the Member of target species, with 
breakdown by fishery, and the number of vessels used in those catching or production operations, 
with breakdown by op erated location areas;
18   
 (b) the criteria and scientific information used to set 
the status of the fishery;   
 (c) whether the fishery in question is under 
management of a regional fisheries management 
organization or arrangement and which are the nature of the monitoring and the quantitative 
limits applicable to the Member;   
 
(d) national fisheries management plans in place, with 
sufficient information to enable Members to  TN/RL/W/232 
Page C-50 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
evaluate and to understand their framework and 
operation;  and 
 (e) government-to-government payment for access by 
foreign vessels to fishing resources of a 
developing country's maritime jurisdiction or to quotas or any other rights established by any 
regional fishery management organization or 
arrangement ("access rights"), with breakdown by recipient country, total amounts paid, amounts 
received on the onward transfer of the access 
rights, fisheries data (in accordance with items (a) and (b) of this paragraph) and other relevant 
information.   
 (f) information on the biological status of relevant 
marine ecosystems.   
 This list is not exhaustive, nor can one or several of these 
factors necessarily give decisive guidance.
19   
 
7.3 Without prejudice of Article 6 of the ASCM, 
serious prejudice to a fisher y resource in the sense of 
paragraph (c) of Article 7.1 of this Annex shall be 
presumed to arise when:   
 (a) there is an increase in the subsidizing Member's 
capacity to produce a fishery product due to the 
subsidy;  or 
 
(b) an increase in the subsidizing Member's relative 
share of production of a fishery product, as compared to non-subsid ized production, over a 
representative period sufficient to demonstrate clear 
trends in production.   
 
7.4 For purposes of assessment of adverse effects 
pursuant to Articles 7 and 8 of this Annex, the period of data collection normally should be at least three years, and 
should include the entirety of the period of data collection 
for the subsidy investigation.  
 
   TN/RL/W/232
 Page C-51Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
Countervailing Measures:  Determination of Injury to a 
Fishery Resource  
 8.1. Members taking any countervailing duty measures 
under Part V of the ASCM shall do so only in accordance 
with the provisions thereof, except that where they avail 
themselves of the injury test in this Article of this Annex, 
they shall utilize any provisions specified in this Article of 
this Annex.
20  In particular, the following provisions shall 
apply to any investigations involving allegations of injury 
to a fishery resource: 
 (a) With reference to Article 11.1, 11.4 and 11.6 of 
the ASCM, Members sh all grant recognized 
consumer, industry and advocacy groups standing to submit a written application, and the authorities 
may decide to initiate an investigation without 
having received a written application by or on behalf of a domestic industry without needing to 
show that special circumstances exist for taking 
such action, it being recognized that injury to that 
Member's fishery resource may or may not be 
drawn to the attention of the Member by a domestic industry;   
 
(b) With reference to Article 11.2 of the ASCM, an 
application may refer the criteria in 
Article 11.2(iv) of the ASCM or the injury factors 
referred to in this Article of the Annex relating to injury to a fishery resource;   
 
(c) [Consider whether the definition of "interested 
parties" under Article 12.9 of the ASCM needs to 
broaden the parties included, and in particular to 
grant standing to recognized consumer, industry and advocacy groups as interested parties as well 
as applicants, with a possible amendment to 
Article 16 of the ASCM];  
 
(d) With reference to calculation of the amount of a 
subsidy in terms of benefit to the recipient, in 
addition to the guidelines of Article 14 of the 
ASCM, Members may use a method consistent  TN/RL/W/232 
Page C-52 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
with the following:  
 
 ….  
(e) With reference to determination of the amount of 
any countervailing duty pursuant to Article 19.4 of the ASCM, subsidization per unit of the 
subsidized and exported product, the amount of 
the subsidy may include all subsidies found to exist in relation to the harvesting and production 
of such a product, including subsidies to any 
vessels used in such harvesting … [give any other necessary examples].  
 
(f) …. [identify any other provisions that should be 
specific to a countervailing duty investigation 
involving allegations of injury to a fishery 
resource.]  
 
8.2 A determination of injury to a fishery resource in 
the sense of paragraph (a) of Article 7.1 of this Annex in a 
countervailing duty investigation shall be based on positive 
evidence and involve an objective examination of the volume of the fishery activity and its effect on the 
Member's fishery stocks, and the effect of the fishery 
activity on the fishery resource.
21   
 
8.3 The examination of th e injury to a fishery 
resource from fishery activity shall include an evaluation of the volume of the fishery activity, in particular whether 
there has been a significant in crease in subsidized imports, 
either in absolute terms or relative to production or catch related to the product in the Member's waters. With regard 
to the effect on Member's fishery stocks, the investigatory 
authorities shall consider whether there has been a significant decrease in their fish stocks, or whether the 
effect of the fishery activity is to reduce stocks of 
migratory fisheries, reduce traditional hatching in the Member's fishing territories, or otherwise impair 
production or catch in the Member's waters. No one or 
several of these factors can necessarily give decisive 
guidance.
22  
   TN/RL/W/232
 Page C-53Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
8.4. The examination of the injury to a fishery 
resource from fishery activity shall include an evaluation 
of the effect of the fishery activity on all relevant fishery 
resource factors, including:   
 
(a) the total catch (in volume terms) by the Member 
of target species and by- catch, with breakdown by 
fishery, and the number of vessels used in those 
catching operations, with breakdown by operated location areas;
23   
 
(b) the criteria and scientific information used to set 
the status of the fishery;   
 
(c) whether the fishery in question is under 
management of a regional fisheries management 
organization or arrangement and which are the 
nature of the monitoring and the quantitative limits applicable to the Member;   
 
(d) national fisheries management plans in place, with 
sufficient information to enable Members to 
evaluate and to understand their framework and operation;  and 
 
(e) government-to-government payment for access by 
foreign vessels to fishing resources of a 
developing country's maritime jurisdiction or to 
quotas or any other rights established by any regional fishery management organization or 
arrangement ("access rights"), with breakdown by 
recipient country, total amounts paid, amounts received on the onward transfer of the access 
rights, fisheries data (in accordance with items (a) 
and (b) of this paragraph) and other relevant information.   
 
(f) information on the biological status of relevant 
marine ecosystems.   
 
This list is not exhaustive, nor can one or several of these 
factors necessarily give decisive guidance.
24   
  TN/RL/W/232 
Page C-54 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
8.5 Where fishery activities of more than one country 
are simultaneously subject to a proceeding, the effects of 
such activities shall be cumulated only if they determine that the amount of subsidization established in relation to 
the imports from each country is more than de minimis  as 
defined in paragraph 9 of ASCM Article 11 and the volume of imports from the fi shery activity of each country 
is not negligible.
25   
 8.6 It must be demonstrated that the fishery activity 
is, through the effects of subsidies, causing injury within 
the meaning of this section.  The demonstration of a causal relationship between the fishery activity and injury to the 
fishery resource shall be based on an examination of all 
relevant evidence before the authorities.  The authorities shall also examine any know n factors other than the 
subsidized fishery activity which at the same time are 
injuring the fishery resource, and the injuries caused by these other factors must not be attributed to the subsidized 
fishery activity.
26   
 
8.7 The effect of the subsidized fishery activity for a 
particular product covered by this Annex shall be assessed in relation to any fisheries resource covered by this 
Annex.
27   
 
8.8 For purposes of a coun tervailing duty proceeding 
under ASCM Part V, injury shall include the provisions of 
Articles 7 and 8 of this Annex, except that the fishery resource examined shall be  exclusively within the 
Exclusive Economic Zone or archipelagic waters of the 
Member investigating injury to its fisheries resource.  Injury for the purposes of a countervailing duty proceeding 
under ASCM Part V may also be determined according to 
the standards of Article 15 ASCM, even if it is a fishery subsidy covered by this Annex.
28   
 
Prevention of circumvention  
9. Members shall not have recourse to rules of origin 
(preferential or non-preferential), the flag of a vessel and access rights, among others, as a means to undermine the   TN/RL/W/232
 Page C-55Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
objectives set out in the preamble and to circumvent their 
obligations under this Annex.   
__________________________ 
 16 Nothing in the concept of adverse effects to a fishery 
resource shall prejudice the abilit y of a panel to find adverse 
effects as otherwise defined in  Article 5 of the ASCM for 
products covered by Articles 2 and 3 of this Annex.  An adverse 
effect to the fishery resource is an alternative additional means of 
meeting the ASCM adverse effects standard. 
 17 The term "injury to the fisheries resource" has the 
same meaning in ASCM Part III and ASCM Part V, except as 
specified by paragraph 7.8 of this Annex. 
 18 For evaluation of stocks involving multi-species, for 
example in tropical waters, Members shall use the available 
scientific data to identify trends. 
 19 This provision parallels ASCM Article 15.4, using 
the factors contained in [our] 2 July 2007 Proposal. 
 20 This provision parallels ASCM Article 10. 
 21 This provision parallels  ASCM Article 15.1.   
 22 This provision parallels  ASCM Article 15.2.   
 23 For evaluation of stocks involving multi-species, for 
example in tropical waters, Members shall use the available 
scientific data to identify trends. 
 24 This provision parallels ASCM Article 15.4, using 
the factors contained in [our] 2 July 2007 Proposal.   
 25 This provision parallels ASCM Article 15.3 on the 
issue of multiple countries being investigated in a countervailing 
duty proceeding.   
 26 This provision parallels ASCM Article 15.5 on the 
need for proof of causation.   
 27 This provision parallels ASCM Article 15.6 on "like 
product".  However, for purposes of the adverse effects to 
fisheries resource test, the "lik e product" determination would not 
be the same as in a standard injury test that measures trade effects 
to a like product.  For example, a fishing activity for bluefin tuna 
that "injures" the dolphin resource of another Member could be 
covered by these provisions, despite the fact that the bluefin tuna 
fishing might not be "injuring" the bluefin tuna catch.   
 28 Nothing in the concept of adverse effects to fisheries 
resources or injury to a fishery resources shall prejudice the 
ability of a panel or investigating authority to find adverse effects 
or injury as otherwise defined in Article 5 and Part V of the 
ASCM.  An adverse effect to a fisheries resource or injury to a fisheries resource is an alternative additional means of meeting 
the traditional adverse effects or injury standard of Part III and 
Part V of the ASCM.  ]] 
  TN/RL/W/232 
Page C-56 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
[[ Fishery adverse effects  
XX.1 No Member should cause , through the use of any 
fishery subsidy referred to in Article Z 
[exceptions] and Article X.1 (a) and (b), fishery adverse effects. 
XX.2 For the purpose of this Annex, a fishery adverse 
effect shall be deemed to exist if: 
(a) the Member does not have an effective 
national fisheries management system
10 
in place; or 
(b) the subsidy targets overexploited 
stocks.   
 
_______________________ 
              10National fisheries manageme nt system may include, 
inter alia , conservation and manageme nt measures based on the 
best scientific evidence availabl e; fisheries mana gement control 
measures; mechanisms establis hed to identify and quantify 
fishing capacity; vessel registration and licensing system; limited 
entry systems, catch quot as, limits on fishing effort or allocation 
of exclusive quotas to vessels; and timely and reliable statistics 
available on catch and fishing effort in sufficient detail to allow 
sound statistical analys is. Where relevant international standards 
and practices exist, such as the FAO Code of Conduct for 
Responsible Fisheries of 1995, Members shall use them, or the 
relevant parts of them, as a basis for their national fisheries 
management systems.  ]] 
 
 
  
[[ 
IV.1 No Member shall cause, through the use of any 
subsidy referred to in paragraphs 1 and 2 of Article 1, 
depletion of or harm to, or creation of overcapacity in respect of, (a) straddling or highly migratory fish stocks 
whose range extends into the EEZ of another Member.  
The existence of such situations shall be determined taking into account available pertinent information, including 
from other relevant international organizations.   
 
IV.2 Any subsidy referred to in this Annex shall be   TN/RL/W/232
 Page C-57Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
attributable to the Member conferring it, regardless of the 
flag(s) of the vessel(s) involved or the application of rules 
of origin to the fish involved.  ]] 
  TN/RL/W/232 
Page C-58 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
FISHERIES MANAGEMENT  
 
 [[ 2. Governmental activity directly associated with the 
creation and implementation of fisheries management 
systems4, and the enforcement of  fisheries management 
rules shall not be treated as fisheries subsidies. 
 ______________________ 
 4This comprises the establishment and administration of 
management systems (including a llocating and monitoring fishing 
licences, permits, quot a, vessel numbers and catch returns); 
adjusting management settings w ithin an existing management 
system; and developing amendments or additions to the existing 
management system. ]]  -- See also , General exceptions 
section.   
 
 
 
 
 
[[ 3.   A developing country Member may nevertheless 
grant such subsidies as are listed in paragraph 1.1 to 
fishing vessels with an overall length of 28 metres or less, 
for the purpose of exploiting underutilised fish stocks within its area of fisheries jurisdiction, provided that any 
build-up of fishing capacity is consistent with a 
comprehensive resource management plan based on 
scientific advice for the sustainable management and 
exploitation of such fish stocks.  The management and exploitation plan shall have been approved by an 
internationally recognised competent management or 
scientific body and the approved plan shall be notified in 
accordance with paragraphs 5, 6 and 7 of this Annex.  
]]  -- 
See also,  Special and differential treatment section.  
 
 
 
[[ 2.3 Government funding of services directly related to 
fisheries management, including data collection and V.1 Any Member granting or maintaining any subsidy 
as referred to in Article II or Article III.2(b) shall operate a 
fisheries management system regulating marine wild 
capture fishing within its jurisdiction, designed to prevent 
overfishing.  Such management system shall be based on internationally-recognized best practices for fisheries 
management and conservation as reflected in the relevant 
provisions of international instruments aimed at ensuring 
the sustainable use and conservation of marine species, 
such as, inter alia , the Fish Stocks Agreement , the Code of 
Conduct , the Compliance Agreement , technical guidelines 
and plans of action (including criteria and precautionary 
reference points) for the implementation of these instruments, or other related or successor instruments.  The 
system shall include regular science-based stock 
assessment, as well as capacity and effort management measures, including harvestin g licences or fees;  vessel 
registries;  establishment and allocation of fishing rights, or 
allocation of exclusive quotas to vessels, individuals and/or groups, and related enforcement mechanisms;  species-
specific quotas, seasons and other stock management 
measures; vessel monitoring which could include electronic tracking and on-boar d observers;  systems for 
reporting in a timely and reliable manner to the competent 
national authorities and relevant international organizations data on effort, catch and discards in sufficient detail to 
allow sound analysis;  and research and other measures 
related to conservation and stock maintenance and 
replenishment.  To this end, the Member shall adopt and 
implement pertinent domestic legislation and administrative or judicial enfo rcement mechanisms.  It is 
desirable that such fisheries management systems be based 
on limited access privileges
85.  Information as to the nature 
and operation of these systems, including the results of the 
stock assessments performed, shall be notified to the 
relevant body of the FAO, where it shall be subject to peer review prior to the granting of the subsidy
86.  References 
for such legislation and mechanism, including for any 
modifications thereto, shall be notified to the Committee on Subsidies and Countervailing Measures ("the There is strong support among delegations for the inclusion 
of sustainability conditionalities  – in particular for 
fisheries management -- for the provision of subsidies 
under general exceptions or S&D provisions.  That said 
there are widely differing views as to the strength of 
such management requirements.  Some  consider that all 
Members wishing to make use of exceptions should 
implement science-based management reflecting 
international best practices , while others, particularly 
certain developing country de legations, consider that 
management requirements should be best-efforts based, 
making use of indigenous institutions and mechanisms .  
Some delegations consider that the fisheries management 
requirement is the most important element of the proposed 
disciplines.  That said, some of these delegations believe 
that if effective fisheries manag ement is in place, there is 
little need for fisheries subsidies disciplines .  Others, 
however, consider that the only basis on which 
subsidies to the fisheries sector can be envisaged is 
where effective management is in place  to prevent the 
subsidies from contributing to overcapacity or overfishing.   
 Views also differ as to the content and prescriptiveness of 
the management conditionalities, as to whether different 
conditionalities should apply to developed and developing Members, and as to whether all conditionalities should 
apply to each individual exception under the general 
exceptions and S&D provisions.  Concerning content, a 
number of delegations are of the view that the 
requirements as contained in the Chairman’s text are 
too complex and detailed, and/or that additional flexibility is required for de veloping country Members.   
In this context it has been suggested that the management 
conditionalities be streamlined in various ways.  Some delegations call for the identification of core elements  -- 
including stocks assessments, management control 
measures, and compliance and enforcement mechanisms -- 
that all Members’ systems would need to include,   TN/RL/W/232
 Page C-59Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
analysis for fisheries science, management and 
enforcement, the pr otection and restoration of marine 
habitats, the development and implementation of fisheries management measures, and the monitoring and 
enforcement of fishery regulati ons are not covered by this 
Annex.
4 
______________________ 
 4Fisheries management includ es the establishment and 
administration of mana gement systems (incl uding allocating and 
monitoring fishing licences, perm its, quota, vessel numbers and 
catch returns); adjusting management settings within an existing 
management system; and developi ng amendments or additions to 
the existing management system.   ]]  See also , General 
exceptions section.   
 
 
  
[[ 
1.     The following subsidies[ ] granted for enterprises 
engaged in harvesting of marine[ ] wild fish , shall be 
prohibited, except as otherwise provided in this Annex:   
 
(a) subsidies for the acquisition, and construction of fishing vessels, unless: 
 
..... 
 
(ii) they are gran ted as incentives
14 
for reducing existing fishing 
capacity, where the gross 
tonnage of the new vessel is reduced by at least 50 per cent of 
the sum of the gross tonnage of 
the withdrawn vessels in the same fishery category
15;  and 
there are in place fisheries 
management control measures, including enforcement 
mechanisms, designed to prevent 
over-fishing in the targeted fishery, such as limited entry 
systems, catch quotas, limits on Committee") pursuant to the provisions of Article VI.4. 
 
V.2 Each Member shall maintain an enquiry point to answer all reasonable enqu iries from other Members and 
from interested parties in other Members concerning its 
fisheries management system, including measures in place 
to address fishing capacity and fishing effort, and the 
biological status of the fisher ies in question.  Each Member 
shall notify to the Committee contact information for this enquiry point.   
 
 ______________________ 
 84 Developing country Memb ers shall be free to 
implement and operate these management re quirements on a 
regional rather than a national basis provided that all of the 
requirements are fulfilled in respect of and by each Member in 
the region.   
 85 Limited access privileges could include, as 
appropriate to a given fishery, community-based rights systems, 
spatial or territorial rights syst ems, or individual quota systems, 
including individual transferable quotas.   
 86 If the Member in question is not a member of the 
FAO, the notification for peer revi ew shall be to another relevant 
international organization.  The specific information to be 
notified shall be determined by the relevant body of the FAO or 
such other organization.   
 
 accompanied by management tools  that Members could 
apply as appropriate in impl ementing the core elements.  
One delegation ( see, TN/RL/W/231) proposed a redrafted 
provision on management separating the elements into 
required components of an overall management system, 
along with a requirement that any subsidies be 
contingent upon the implementation of fisheries- or 
stock-specific management plans for the targeted 
fisheries or stocks , which plans would include capacity 
and effort management and prevention of overfishing, and 
would be approved by a competent body.  Some also 
suggest that management efforts undertaken in the 
context of regional fisheri es management organizations  
be recognized in the rules.   
 Concerning the management conditionalities that would 
apply to developing Members , a number of delegations 
point to the difficulties that such Members have in implementing fisheries management.  Their suggestions 
include replacing references in the Chairman's text to 
internationally-recognized best practices based on 
relevant international instruments with references to 
indigenous institutions and systems , simplified and 
streamlined requirements, and longer transition periods to 
implement the new disciplines ( see, e.g., 
TN/RL/GEN/155/Rev.1).  Some of these delegations also are concerned that the text does not sufficiently take into 
consideration the challenges  of fisheries management – 
in respect of stock assessments and species-specific quotas – in the context of tropical, multi-species 
fisheries.   Some also identify systemic concerns with what 
they see as binding requirements to implement international instruments, many of which are voluntary, 
and whose signatories do not include all WTO Members.  
Other delegations consider, however, that while some 
streamlining of the management provisions may be 
necessary, the basic elements as referred to in the 
Chairman’s text, including internationally-recognized 
best practices based on relevant international 
instruments, can and shou ld be implemented by all 
Members .  In their view, the Chairman’s text would not as 
such make these instruments binding on all WTO 
Members.  Rather, they cons ider that the text draws on  TN/RL/W/232 
Page C-60 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
fishing effort or allocation of 
exclusive quotas to vessels, 
individuals and/or groups.   
 
 
______________________ 
 14Governmental support fo r vessel replacement, 
including construction or purchase of new vessels, is assumed as 
a form of such incentives. 
 15The term "same fishery ca tegory" means a group of 
fishing operations targeting for the same species.  ]]  -- See 
also, Prohibition section  
 
 
 
  [[
 (a) government-to-government payments to 
obtain access for a Member's distant 
water fishing fleet to fisheries resources within the exclusive economic zone of 
another country under the following 
conditions:   
 
  ...... 
 
(ii)  the access arrangement provides 
for a science-based assessment 
and monitoring of the status of 
the fisheries resources in 
question and for compliance with applicable fishery 
management systems;   
  (b) subsidies for vessel decommissioning 
programmes under the following 
conditions:   
 
  ...... 
   (iii) there are in place fisheries 
management control measures, 
including enforcement  these instruments for substan tive guidance as to what are 
internationally-recognized best practices, and note in this 
regard their inbuilt flexibilities for developing countries.   
 
In respect of the provisions  of the Chairman’s text 
concerning peer review , a number of delegations question 
the proposed nature and timi ng of, and the forum for, 
such reviews.  In their view, the text implies that 
another international organization (the FAO) would 
pass judgement on the adequacy of WTO Members’ 
fisheries management systems and efforts, a prospect 
over which they have systemic concerns.   Some 
delegations would have no concern over submitting 
relevant fisheries related information to the FAO but would 
require that information to be reviewed and discussed at the WTO, with expert input as necessary from the FAO 
and other appropriate sources, and/or through the 
establishment of a fisheries expert group under the auspices of the WTO.  Some other delegations consider 
that the peer review provisions  should be substantially 
strengthened .  In particular, they take the view that the 
reviews should reach conclusions, and that these 
conclusions should be able to form the basis for dispute 
settlement.   Yet other delegations see  no systemic 
problems with the review mechanism proposed in the 
Chairman’s text.  In their view, the text envisages a 
multilateral review, conducted in the relevant 
international body by represe ntatives of Members with 
the relevant expertise to be able to conduct an adequate 
substantive review of the information .  For these 
delegations, the goal of the review would be transparency, 
akin to what takes place in  WTO Committees, or in the 
TPR process.  Concerning timing, a number of delegations 
consider that the proposed requirements for prior review  
of stock assessments where capacity-increasing subsidies would be provided (under a developing Member 
exception), or for prior review of management systems 
before granting of other permitted subsidies, would be difficult to implement .  Others favour prior reviews , but 
recognize that this may not be possible in all 
circumstances.  Some other delegations see the crucial 
element to be the regularity  of reviews, particular 
because situations in fisheries can evolve relatively   TN/RL/W/232
 Page C-61Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 quickly.   
 
 
  
  
  mechanisms, designed to prevent over-fishing in the 
targeted fishery, such as limited entry systems, catch quotas, 
limits on fishing effort or 
allocation of exclusive quotas to vessels, individuals and/or 
groups.   
 
(c) subsidies for small-scale fisheries, if such 
fisheries meet the following conditions:   
 ..... 
 
(iv) there are in place fisheries 
management control measures, 
designed to prevent over-fishing 
in the targeted fishery, which include limited entry systems, 
catch quotas, limits on fishing 
effort or allocation of exclusive 
quotas to vessels, individuals 
and/or groups;   
 
..... 
   (f) government expenditures for research on 
fisheries management, including data 
collection, surveys, data analysis, stock monitoring, sampling and assessment;  
and 
 
 (g) government expenditures for measures 
that enhance marine resources rather than 
capacity to harvest those resources, such as fisheries stock enhancement, marine 
conservation and marine protection, 
including marine environment restoration, hatcheries for breeding, 
artificial reefs and by-catch mitigation 
devices.  
]]  -- See also, General 
Exceptions section.  
    TN/RL/W/232 
Page C-62 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
[[ 5.2 For the purpose of this Annex, a fishery adverse 
effect shall be deemed to exist if:   
 
 (a) the Member does not have a national 
fisheries management system in place, 
which may include, inter alia :  
conservation and management measures 
based on the best scientific evidence 
available;  fisheries management control measures (fisheries monitoring, 
surveillance, control and enforcement 
mechanisms);  mechanisms established to identify and quantify fishing capacity;  
vessel registration and licensing system; 
limited entry systems, catch quotas, limits on fishing effort or allocation of 
exclusive quotas to vessels;  and timely 
and reliable statistics available on catch and fishing effort in sufficient detail to 
allow sound statistical analysis
8;  or 
 
 (b) the volume of the total catch by a 
Member of any "endangered specie"9 and 
the number of vessels used in those 
fishing operations are not decreasing, as 
compared to the total catch volume and number of vessels it had during the 
previous year. 
______________________ 
 8 Where relevant international standards and practices 
exist, Members shall use them, or the relevant parts of them, as a 
basis for their national fish eries management systems. 
 9 For the purposes of this Annex, "endangered specie" 
shall mean all species except those that are (a) in a very healthy 
situation, with no or almost no fishing activities, or that are being 
exploited below or at a calculated sustainable allowable catch, 
based on the best scientific inform ation available;  or (b) under 
the administration of a RFMO or a regional fisheries management 
arrangement, which operate under a fisheries management system 
that is based on relevant intern ational standards and practices.   ]]  
-- See also, Other Disciplines section. 
 
 
   TN/RL/W/232
 Page C-63Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
[[ Article 1.6(b) (Definitions and coverage) :  the access 
arrangements provide for co mpliance with applicable 
fishery management plans and for a science-based 
assessment and monitoring of the status of the fishery resources covered by the access arrangements;  
 
Article 3.2(a)(iv) (Fisheries subsidies actionable)
:  there 
are in place fisheries manageme nt plan designed to prevent 
over-fishing in the targeted fishery, such as limited entry 
systems, catch quotas, limits on fishing effort or allocation 
of exclusive quotas to vessels, individuals and/or groups, 
provided that special flex ibility should be given to 
developing countries, including any technical assistance 
requested by any such developing country as provided in 
Article 5 below.  
Article 4.1(g
) (Exceptions to actionable subsidies):  
Assistance and user-specific a llocations to individuals and 
groups under limited access pr ivileges and other exclusive 
quota programmes, and other expenses related to 
administration and operation of fishery management programmes, including allocation and monitoring of 
licences, permits, quotas, vessel numbers and catch returns.   
 
Article 5.5(a) (Special and differential treatment) :  The 
Member has a fishery management plan in place that is 
effectively monitored and adequately enforced . 
 
Article 5.7 (Special and differential treatment) :  Upon the 
request of developing country Members, developed 
country Members shall provid e technical assistance to 
developing country Members on mutually agreed terms 
and conditions to develop the capacity to initiate, 
implement and enforce co mpliance with a fishery 
management plan in keeping with the FAO Code of 
Conduct on Responsible Fisheries and adequate to provide 
the showing required by Articles 5.3, 5.4 and 5.5 of this 
Annex.  ]] 
 
 
 
  TN/RL/W/232 
Page C-64 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
[[ Fisheries Management11 
 
V.1 Any Member granting or maintaining any subsidy 
as referred to in Article II or Article III.2(b) shall 
operate a fisheries management system regulating 
marine wild capture fishing within its jurisdiction, 
designed to prevent overfishing and that ensures the long-term conservation and sustainable use of 
fisheries resources.
12   
 
1.1 The fisheries management system shall 
be based on internationally-recognized 
best practices for fisheries management as reflected in the relevant provisions of 
international instruments for the long-
term conservation and sustainable use of fisheries resources, such as, inter alia ,  
 
i. the United Nations Convention 
on the Law of the Seas  
ii. the UN Fish Stocks Agreement ,  
iii. the FAO Code of Conduct for 
responsible fisheries ,  
iv. the 1993 FAO Compliance 
Agreement , and 
v. technical guidelines and plans of 
action (including criteria and precautionary reference points) 
for the implementation of these 
instruments, or other related or successor instruments.   
 
1.2 The fisheries management system shall, 
as appropriate, include: 
 
i. a system comprising 
authorization to fish ( inter alia 
fishing permits, fishing licenses 
and vessel registries); 
ii. allocation of fishing 
possibilities, or allocation of quotas to vessels, individuals 
and/or groups;     TN/RL/W/232
 Page C-65Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
iii. single- or multi-species 
regulations and/or quotas;  
iv. restrictions on the use of fishing 
gear, closed seasons and/or 
areas and other stock 
management measures;  
v. vessel monitoring and catch 
control systems, which could 
include electronic tracking and on-board observers;   
vi. systems for reporting in a timely 
and reliable manner to the competent national authorities 
and relevant international 
organizations data on effort, catch and discards in sufficient 
detail to allow sound analysis;  
and 
vii. research and other measures 
related to conservation and 
stock maintenance and 
replenishment.   
 
V.2 Any Member granting or maintaining any subsidy 
as referred to in Article II or Article III.2(b) shall, 
for each fishery and/or fi sh stock for which the 
subsidy is directed, implement a fisheries 
management plan designed to prevent overfishing 
of that particular fish stock. 
 
2.1 The fisheries management plan shall be 
based on a regularly updated science-
based stock assessment including 
precautionary reference points for that 
stock or best biological information 
available. 
 
2.2 The fisheries management plans that 
include science-based stock assessment, 
shall include the establishment of fishing 
mortality rates that will ensure that the 
fishing will be kept within the relevant 
precautionary reference points for that  TN/RL/W/232 
Page C-66 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
stock.  
 
2.3 The scientific basis for the management 
plan shall have been approved by an 
internationally recognised, competent 
management or scientific body.13 
 
2.4 The fisheries management plan shall 
include capacity and effort management 
measures that constrain harvesting within 
safe biological limits, either  through the 
allocation of quotas within a Total 
Allowable Catch (TAC) determined for 
each year or through the application of 
other similarly effective stock 
management measures. 
 
 2.5 Each Member shall ensure that non-
stock-specific subsidies do not result in overfishing.  Where a subsidy relates to 
more than one fishery or fish stock, a 
management plan is required for each 
fish stock affected by the subsidy.  
 
 2.6 Subsidies referred to in Article II(c) shall 
only be subject to paragraph 1 of this 
Article
. 
 
V.3 To ensure compliance with the provisions set out 
above,  each Member shall ad opt and implement necessary 
domestic legislation and administrative or judicial 
enforcement mechanisms.   
 
_____________________ 
 11Chair's footnote 84:  Developing country Members 
shall be free to implement a nd operate these management 
requirements on a regional rather  than a national basis provided 
that all of the requirements are fulfilled in respect of and by each 
Member in the region. 
 12Explanatory footnote:  The additional language 
mirrors more closely the FAO C ode of Conduct.  The importance 
of this addition is that the system should not only be designed to 
prevent overfishing, but should also be implemented and enforced    TN/RL/W/232
 Page C-67Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
so that overfishing is effectivel y avoided on a long –term basis 
 13Proposed new footnote:  Such bodies include the 
scientific/biological bodies of a number of Regional Fisheries 
Management Organisations, an d the Advisory Committee for 
Fisheries Management (ACFM) of  the International Council for 
the Exploration of the Seas (ICES), and national research 
institutes.. ]] 
 
 
 
 
[[ Fisheries Management15 
 
V.1 Any Member granting or maintaining any subsidy 
as referred to in Article II shall operate a fisheries 
management system regulating marine wild capture fishing 
within its jurisdiction, designed to prevent overfishing.  Such management system could be based on 
internationally-recognized best practices for fisheries 
management and conservation as reflected in the relevant provisions of international instruments aimed at ensuring 
the sustainable use and conservation of marine species.   
The system shall include regular science-based stock assessment, as well as capacity and effort management 
measures, including harvestin g licences or fees;  vessel 
registries;  establishment and allocation of fishing rights, or allocation of exclusive quotas and other stock management 
measures;  systems for reporting in a timely and reliable 
manner to the competent national authorities data on effort, 
catch and discards in sufficient detail to allow sound 
analysis; and research and other measures related to conservation and stock maintenance and replenishment.  
To this end, the Member shall adopt and implement 
pertinent domestic legislation and administrative or judicial enforcement mechanisms.  It is desirable that such fisheries 
management systems be based on limited access 
privileges
16.  References for such legislation and 
mechanism, including for any modifications thereto, shall 
be notified to the Committee on Subsidies and 
Countervailing Measures ("the Committee") pursuant to the provisions of Article VI.4. 
 
V.2 Each Member shall maintain an enquiry point to  TN/RL/W/232 
Page C-68 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
answer all reasonable enqu iries from other Members and 
from interested parties in other Members concerning its 
fisheries management system, including measures in place 
to address fishing capacity and fishing effort, and the 
biological status of the fisher ies in question.  Each Member 
shall notify to the Committee contact information for this enquiry point.   
______________________ 
 15 Developing country Memb ers shall be free to 
implement and operate these management re quirements on a 
regional rather than a national basis provided that all of the 
requirements are fulfilled in respect of and by each Member in 
the region. 
 16 Limited access privileges could include, as 
appropriate to a given fishery, community-based rights systems, 
spatial or territorial rights syst ems, or individual quota systems, 
including individual transferable quotas.  ]] 
 
   TN/RL/W/232
 Page C-69 
Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
NOTIFICATIONS AND SURVEILLANCE  
 
[[ 25 bis.1  Enhanced notification requirements for 
fisheries subsidies  
 
[Procedures for notification requirements for non-
prohibited (Annex VIII) fisheries subsidies will be 
developed.]  ]] 
 
 
 
 
[[ 5.1 Subsidies for which Article 3 is being invoked 
shall be notified prior to the adoption of the programme or, 
in case of an ad hoc grant, prior to the commitment. 
5.2  All other subsidies shall be notified no later than 
upon the date of adoption of the programme, or in case of an ad hoc grant, the date of commitment.  
5.3 Members shall, upon request by any Member, 
provide translations in an official language of the WTO of the documents covered by a specific notification or, in case 
of voluminous documents, of summaries of such 
documents. 
5.4 Subparagraphs 1 to 3 of this Article shall not 
apply to a Member that has notified to the WTO that it has transposed the provisions of th is Article into its domestic 
legal system. Without prejudice to Article 30 of the SCM 
Agreement, the Permanent Gr oup of Experts established 
under Article 24.3 of the SCM Agreement shall examine 
within 9 months from the date of notification whether the 
transposition and enforcement are adequate. The examination shall be conducted on the basis of a 
notification by the Member concerned of its domestic 
legislation and relevant administrative procedures as well 
as any amendments thereof havi ng regard to the following 
criteria:  VI.1 Each Member shall notify to the Committee in 
advance of its implementation any measure for which that 
Member invokes the provisions of Article II or 
Article III.2;  except that any subsidy for natural disaster relief
87 shall be notified to the Committee without delay88.  
In addition to the information notified pursuant to 
Article 25, any such notification shall contain sufficiently precise information to enable other Members to evaluate 
whether or not the conditions an d criteria in the applicable 
provisions of Article II or Article III.2 are met.   
VI.2 Each Member that is  party to an agreement 
pursuant to which fishing rights are acquired by a Member government ("payer Member") from another Member 
government to fisheries within the jurisdiction of such 
other Member shall publish that agreement, and shall 
notify to the Committee the publication references for it. 
 VI.3 The terms on which a payer Member transfers 
fishing rights it has obtained pursuant to an agreement as 
referred to in paragraph 2 shall be notified to the Committee by the payer Member in respect of each such 
agreement.   
 VI.4 Each Member shall include in its notifications to 
the Committee the references for its applicable domestic 
legislation and for its notifications made to other organizations, as well as for the documents related to the 
reviews conducted by those organizations, as referred to in 
Article V.1.  
VI.5 Other Members shall have the right to request 
information about the notified subsidies, including about individual cases of subsidization, about notified 
agreements pursuant to which fishing rights are acquired, 
and about the stock assessments and management systems 
notified to other organizations pursuant to Article V.1.  
Each Member so requested sh all provide such information 
in accordance with  the provisions of Article 25.9. Most delegations support the transparency objective 
reflected in this Article.  That said, some delegations have 
reservations about the requi rement in the draft that 
subsidies be notified before they are granted .  They note 
in this regard that such a requirement would be more 
stringent than Article 25 of the SCM Agreement, and 
consider that fisheries subsidies should not be treated differently in this respect from subsidies to other sectors.  
Some also find that such a requirement would be too 
burdensome on small economies.  Other delegations 
support the idea of prior notification , and note that other 
WTO Agreements (for example the SPS and TBT 
Agreements) require ex ante notification of measures, and that the proposal in the Chairman’s text thus would not be 
novel.  In this regard, some delegations noted that what the 
text calls for is not prior approval but prior notification, 
which they view as very important for the effective 
functioning of the disciplines.  Certain delegations 
consider that the notificati on requirements should be 
strengthened , including for example by introducing a 
mechanism to verify the accuracy  of notified information.  
A further suggestion is to expand the provision referring to 
information about apparent IUU fishing to refer also to 
other types of activities.    
Some delegations consider that the requirement to 
provide "sufficiently precise  information" should be 
clarified , and suggest that the text  specify in more precise 
terms the information to be submitted.  Some delegations 
have provided a proposal ( see, TN/RL/GEN/155/Rev.1) to 
amend the Chairman's text concerning information to be 
notified, whereby every Member deploying vessels in 
international waters would be required to notify certain information about the vessels and fishing operations 
thereof.   
  TN/RL/W/232 
Page C-70 Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
a) the implementation of a rigorous and 
timely reporting system for subsidies to 
the fisheries sector given by all levels of 
government to the relevant body within the WTO Member;   
b)  the existence of an ex-post monitoring 
mechanism of the subsidies that are 
granted to the fisheries sector, including 
the publication of periodic ex-post reports; 
5.5 The Secretariat shall ma ke publicly available any 
notifications in accordance w ith the provisions of this 
Agreement, upon r eceipt thereof. 
5.6 A breach in notificati on procedures renders the 
subsidy concerned prohibited and any amounts already disbursed shall be recovered.  
5.7  The procedural provisions of this Article will also 
apply to developing country Members. The PGE will assess within one year from th e entry into force of this 
Article which transitional arrangements are required in this 
respect, taking particular account of the institutional and 
financial resource constraints of and the need for flexibility 
for LDCs/small and vulnerable economies. 
]] 
 
 
  
[[ 
5.     Any fisheries subsidy set out in paragraph 1.1: 
 (a)  granted to fishing vessels of 15 metres overall 
length or less; 
 (b) granted under the exceptions set out in 
paragraphs 2 or 3 of this Annex;  
 (c)  where the provisions of paragraph 4 of this 
Annex apply; or 
 (d) granted during the transitional periods as 
specified under the provisions set out in 
paragraphs 8 or 9 of this Annex;  
VI.6 Any Member shall be free to bring to the attention 
of the Committee information from pertinent outside sources (including intergovernmental organizations with 
fisheries management-related activities, regional fisheries 
management organizations and similar sources) as to any apparent illegal, unreported and unregulated fishing 
activities.  
 VI.7 Measures notified pursuant to this Article shall be 
subject to review by the Co mmittee as provided for in 
Article 26.  
_______________________ 
 87 As provided for in Article I.1 and footnote 77. 
 88 For the purposes of this provision, "without delay" 
shall mean not later than the date of entry into force of the 
programme, or in the case of an ad hoc subsidy, the date of 
commitment of the subsidy.   
 
    TN/RL/W/232
 Page C-71Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
shall be notified to the WTO and to the Committee set out 
in Article 24 of the ASCM in advance of its implementation.  Any such notification shall be made, 
mutatis mutandis , in accordance with the provisions of 
Article 25 of the ASCM.  
6.   For any other fisheries subsidies, the notification 
requirements of the ASCM apply in their entirety. 
7.   Any subsidy granted under the provisions of this 
Annex which is not notified to the WTO shall be 
considered to be prohibited for that Member.  Members who do not grant any subsidies subject to the notification 
requirements of paragraphs 5 and 6 of this Annex shall 
notify that no such subsidies have been granted.  
]] 
 
 
 
[[ 6.1 A fishery subsidy for which the provisions of 
Articles 3 and 4 are invoked shall be notified to the 
Committee of Subsidies and Countervailing Measures.  On 
a yearly basis, any such notification shall be made, mutatis 
mutandis , in accordance with the provisions of Article 25 
of the ASCM. 
6.2 In addition, for fisheries subsidies of Article 3 and 
4.1 (b) and (c) the notification shall contain the following 
information:   
 
 (a) the total catch (in volume terms) by the 
Member of endangered species, with breakdown by fishery, and the number of 
vessels used in those catching operations, 
with breakdown by operated location areas; 
 
 (b) the total catch (in volume terms) by the 
Member of not-endangered species, with 
breakdown by fishery, and the number of 
vessels used in those catching operations,  with breakdown by operated location  
  TN/RL/W/232 
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areas; 
 (c) the criteria and scientific information 
used to set the status of the fishery; 
 
 (d) whether the fishery in question is under 
management of a regional fisheries management organization or 
arrangement and which are the nature of 
the monitoring and the quantitative limits applicable to the Member;  
 
 (e) national fisheries management systems 
in place, with sufficient information to 
enable Members to evaluate and to 
understand their framework and operation;  and 
 
 (f) government-to-government payment for 
access by foreign vessels to fishing 
resources of a developing country’s 
maritime jurisdiction or to quotas or any 
other rights established by any regional 
fishery management organization or arrangement ("access rights"), with 
breakdown by recipient country, total 
amounts paid, amounts received on the onward transfer of the access rights, 
fisheries data (in accordance with items 
(a) and (b) of this paragraph) and other relevant information. 
 
6.3 Any fishery subsidy which is not notified shall be deemed to cause a fishery adverse effect. 
 
7.1 Upon request of a Member, at any time, the Secretariat shall review a no tification made pursuant to 
Article 6, and where necessary may require additional 
information from the subsidizing Member concerning the notified fishery subsidy under review.  The Secretariat 
shall report its findings to the Committee.  The Committee 
shall promptly review the findi ngs of the Secr etariat with a 
view to determining whether the conditions and criteria set 
out in Articles 3, 4 and 5 have been met.  The procedure  
   TN/RL/W/232
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provided for in this paragraph shall be completed at the 
latest at the first regular meeting of the Committee 
following the request for review, provided that such a request is made at least 2 (two) months before the regular 
meeting of the Committee. 
 7.2 Upon the request of a Member, the determination 
by the Committee referred to in paragraph 1, or the failure 
of the Committee to make such a determination, shall be submitted to binding arbitration.  The arbitration body shall 
present its conclusions to the Members within 120 days 
from the date when the matter was referred to the arbitration body.  The DSU shall apply to arbitrations 
conducted under this paragraph.  
]] 
 
 
 
 
[[ 7.1 Members asserting that a subsidy covered by this 
Annex qualifies for an exception pursuant to Articles 2.1-
2.2 [,4 and 5] shall include in its notification under Article 25 of the ASCM information concerning the 
fisheries benefiting from the subsidy, including whether 
the subsidy is widely available to many fisheries or targeted to specific fisheries, allowing for an assessment of 
how any conditions set forth in Articles 2.1-2.2 [,4 and 5] 
for that exception have been or are expected to be fulfilled.   
7.2 Each Member shall maintain an enquiry point to 
answer all reasonable enqu iries from other Members and 
interested parties in other Me mbers concerning its fisheries 
management system, includi ng measures in place to 
address fishing capacity a nd fishing effort and the 
biological status of managed stocks.
  ]] 
 
  
 
 
[[ 3.1 Members shall notify the following information.  
Such information will be made publicly available19 by the 
Secretariat:      TN/RL/W/232 
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 (a) information on the vessels which have 
been improved, constructed, purchased, or withdrawn under the subsidy programs 
listed in Article 1, and paragraphs (a), (b) 
and (c) of Article 2 of this Annex, such as:  
 
  (i) the name of the vessel;   
(ii) flag state;   (iii) gross tonnage;   
(iv) length;   
(v) construction year;   (vi) name of vessel owner;   
(vii) main fishing areas, fishery 
methods, main target species;  and,  
(viii) in the case of vessel 
improvement, vessel’s gross tonnage before and after it, as 
well as the year of the vessel 
improvement.   
 
 (b) an assessment of how any conditions set 
forth in Article 1, paragraphs (a), (b) and 
(c) of Article 2 of this Annex have been 
fulfilled;  and 
 
 (c) the total vessel capacity (i.e., the number 
of vessels by the vessel size) registered in the Member, and export and import of 
vessels, and annual volume of fishery 
catch
20 by the Member with a breakdown 
of fish species.   
 
3.2 Each Member shall maintain an enquiry point to answer all reasonable enqu iries from other Members and 
interested parties in other Members concerning its subsidy 
programs and fisheries management systems, including measures in place to address fishing capacity and fishing 
effort, the biological status of managed stocks, and a status 
of its MCS (monitoring, control and surveillance) measures 
in the water where subsidized vessels potentially operate.   
  
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3.3 Upon request by all Members, the Committee on 
Subsidies and Countervailing Measures shall set up an ad 
hoc group of experts on fishery, provided in paragraph 2 of Article 24 of this Agreem ent, to peer-review the 
notifications and reports fr om the enquiry points as 
provided in paragraph 2.  Such peer-review shall be conducted together with all participating Members under 
the Committee, upon request by  any Member.  The ad hoc 
group of experts on fishery shall be composed of three to five independent persons, highly qualified in the fields of 
fishery management and fishery economics.  The experts 
will be elected by the Committee.  Any report of the ad hoc expert group, along with the opinions of Members 
concerned on the report, if any, will be made publicly 
available by the Secretariat.  
3.4 Upon request, the ad-hoc group of experts, if 
established, may provide technical assistance to developing country Members so that su ch Members may fulfil the 
notification requirements under paragraphs 1 and 2 of this 
Article.   
 
______________________ 
 19The purpose of the information disclosure is to inform 
RFMOs or other relevant fishery management authorities with the 
data on vessels which have received subsidies, so that these 
fishery management bodies can take  proper actions based on such 
information, if necessary.  Info rmation may be disclosed using 
the website of the WTO.   
 20The term "fishery catch" exclude the production from 
fisheries or aquaculture which is not covered by this Annex.  ]] 
 
 
 
  
[[ 6.1 A Member asserting that a subsidy covered by 
this Annex qualifies for an exception pursuant to Articles 4 
and 5 of this Annex , with the exception of artisanal fisheries under Article 5.1 of this Annex, shall include in 
its annual notification, mutatis mutandis,  under Article 25 
of the ASCM, information fully describing the fisheries benefiting from the subsidy and describing how the  
  TN/RL/W/232 
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subsidy conforms to the conditions set forth in the 
exception.  Information shall include, where relevant, 
measures to address fishin g capacity and effort, the 
biological status of managed stocks and other fishery 
resources.   
6.2 The Committee on the ASCM will annually 
review such notifications and report to Members on the extent to which Members are availing themselves of such 
exceptions.  Reports will be published annually in a form 
available to the public.    
6.3 In reviewing notifications, the Committee is 
encouraged to consult with and seek information from fishery experts, as authorized by Article 24.5 of the 
ASCM.   
 6.4 Each Member shall maintain an enquiry point to 
answer all reasonable enqu iries from other Members and 
interested parties in other Me mbers concerning its fisheries 
management plan, including m easures in place to address 
fishing capacity and fishing effort and the biological status of managed stocks.  Special flexibility shall be given to 
developing countries with respect to instituting enquiry 
points, including flexibility to develop such enquiry points with the help of technical assi stance.  Upon the request of 
developing country Members, developed country Members 
shall provide technical assistan ce to develop the capacity to 
initiate and implement compliance with this Section.  
]] 
 
 
 
 
[[ V.4 Information relating to the obligations set out in 
V.1 and V.2 shall be notified to the relevant body of the 
FAO15.  Each individual subsidy or subsidy programme, as 
well as the relevant fisheries management plans, shall be 
notified to the Committee on Subsidies and Countervailing Measures ("the Committee") pursuant to the provisions of 
Article VI.4.  
 
V.5 Each Member shall maintain an enquiry point to 
answer all reasonable enqu iries from other Members and  
   TN/RL/W/232
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from interested parties in other Members concerning its 
fisheries management system, including measures in place 
to address fishing capacity and fishing effort, and the 
biological status of the fisher ies in question.  Each Member 
shall notify to the Committee contact information for this 
enquiry point.    
_________________ 
 15 Chair's footnote 86:  If the Member in question is not 
a member of the FAO, the notification for peer review  shall be to 
another relevant inte rnational organization.  The specific 
information to be notified shall be determined by the relevant 
body of the FAO or such other organization.  ]] 
 
 
  
 
[[ VI.1 Each Member shall, and developing country 
Members shall, to the extent possible, notify to the 
Committee prior to invoking any of the provisions of 
Article II or Article III.2;  except that any subsidy for natural disaster relief
19 shall be notified to the Committee 
without delay20.  In addition to the information notified 
pursuant to Article 25, any such notification shall contain sufficiently precise information to enable other Members 
to comment upon whether or not the conditions and criteria 
in the applicable provisions of Article II or Article III.2 are met.  
 
VI.2 Each Member that is  party to an agreement 
pursuant to which fishing rights are acquired by a Member 
government ("payer Member") from another Member 
government to fisheries within the jurisdiction of such other Member shall publish that agreement, and shall 
notify to the Committee the publication references for it. 
 
VI.3 Every Member deploying fishing vessels in the 
international waters shall notify to the Committee the type 
and dimensions of the fishing vessels or service vessels 
being deployed, the quantity of catch removed and the 
measures adopted to ensure that the removal of fish from areas adjoining the EEZ boundary of any member shall not  
  TN/RL/W/232 
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adversely impact the fishery within the adjoining EEZ of 
the other member(s). 
 VI.4 The terms on which a payer Member transfers 
fishing rights it has obtained pursuant to an agreement as 
referred to in paragraph 2 shall be notified to the Committee by the payer Member in respect of each such 
agreement.   
 VI.5 Each Member shall include in its notifications to 
the Committee the references for its applicable domestic 
legislation and for its notifications made to other organizations, as well as for the documents related to the 
reviews conducted by those organizations, as referred to in 
Article V.1.  
VI.6 Other Members shall have the right to request 
information about the notified subsidies, about notified agreements pursuant to which fishing rights are acquired, 
and about the stock assessments and management systems 
notified pursuant to Article  V . 1 .   E a c h  M e m b e r  s o  
requested shall provide such  information in accordance 
with the provisions of Article 25.9.  
VI.7 Any Member shall be free to bring to the attention 
of the Committee information on any apparent illegal, unreported and unregulated fishing activities.  
 
VI.8 Measures notified pursuant to this Article shall be subject to review by the Co mmittee as provided for in 
Article 26. 
 ___________________ 
 19 As provided for in Article I.1 and footnote 77. 
 20For the purposes of this provision, "without delay" 
shall mean not later than the date of entry into force of the 
programme, or in the case of an ad hoc subsidy, the date of 
commitment of the subsidy.  ]] 
 
 
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Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
TRANSITIONAL PROVISIONS  
 
[[ 28bis.1 Fisheries subsidies which have been established 
within the territory of any Member before the date on 
which Article 3 bis comes into force and which are 
inconsistent with that Article shall be: 
(a) notified to the Committee no later than one 
year after the date that Article 3 bis comes 
into force; and 
 
(b) brought into conformity with Article 3 bis 
within three years of the date that Article 3 
bis comes into force and until then shall not 
be subject to Part II.  ]]   
 
 
  
 
[[ 8.   The provisions set out in this Annex shall apply after 
a transitional period of three years, except for developing 
country Members and for least-developed country 
Members, for which the provisions apply after a 
transitional period of five years and ten years respectively from the entry into force of this Annex.  The applicable 
transitional period shall be used to bring subsidy 
programmes in conformity with this Annex.   
 
9.   If a least-develope d country Memb er deems it 
necessary to apply subsidies prohibited under this Annex 
beyond the ten-year transitional period, it shall not later 
than one year before the expiry  of this period enter into 
consultation with the Committee on Subsidies and 
Countervailing Measures, which will determine whether an 
extension of this period is justified, after examining all the relevant economic, financial and development needs of the 
least-developed country Member in question.  If the 
Committee determines that the extension is justified, the least-developed country Member concerned shall hold VII.1 Any subsidy programme which has been 
established within the territory of any Member before the 
date of entry into force of the results of the DDA and 
which is inconsistent with Artic le 3.1(c) and Article I shall 
be notified to the Committee not later than 90 days, or in 
the case of a developing country Member 180 days, after 
the date of entry into force of the results of the DDA.  
VII.2 Provided that a programme has been notified 
pursuant to paragraph 1, a Member shall have two years, or in the case of a developing co untry Member four years, 
from the date of entry into force of the results of the DDA 
to bring that programme into  conformity with Article 
3.1(c) and Article I, during which period the programme 
shall not be subject to those provisions. 
 
VII.3 No Member shall ex tend the scope of any 
programme, nor shall a programme be renewed upon its expiry. 
 
 Most delegations support the general approach  in the 
transition provisions in the draft text.  Views differ, 
however, as to the time periods  referred to.  In particular, 
a number of developing country delegations suggest that the transition period to be applied to developing Members 
be lengthened.  Some delegations suggest harmonizing 
these transition periods with those ultimately agreed in the Agriculture negotiations, and some delegations consider 
that developing Members should have 10 years in which to 
implement their new obligations.  Other delegations consider that transition periods can only meaningfully be 
considered when the overall level of disciplines applicable 
to the different groups of Members has been established.  In their view, if the level of disciplines is low, only short 
transition periods could be justified.  Similarly, some 
delegations suggest that if the transition periods are 
extended, a staged phasing out of inconsistent subsidies 
should be required.   
  TN/RL/W/232 
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annual consultations with the Committee to determine the 
necessity of maintaining the subsidies.  If no such 
determination is made by the Committee, the least-developed country Member shall phase out those fisheries 
subsidies within three years from the expiry of the last 
authorised period.  
]] 
 
 
 
 
[[ 10.1 Any fisheries subsidy which has been established 
within the territory of a Member before the date of the 
entry into force of this Annex shall be notified to the Committee in no later than 90 days after that date. 
 
10.2 From the entry into force of this Annex, there shall be a period of three years for developed country 
Members and a period of five years for developing country 
Members to gradually phase out and eliminate fisheries 
subsidies that are inconsistent with the provisions of this 
Annex.  The starting point of the reduction shall be the 
2003-2005 average of the fi sheries subsides prohibited 
under Article 2.  Members shall not be allowed to adopt 
new prohibited fisheries subsidies or to extend the scope of 
any existing prohibited fisheries subsidy. 
 
10.3 Any least-developed country Member shall phase 
out its fisheries subsidies within an eight-year period, 
preferably in a progressive manner, from the date of entry 
into force of this Annex.  If such least-developed country Member deems it necessary to apply such subsidies beyond 
the 8-year period, it shall not later than one year before the 
expiry of this period enter into consultation with the Committee, which will determine whether an extension of 
this period is justified, after examining all the relevant 
economic, financial and development needs of the Member in question.  If the Committee determines that the 
extension is justified, the Member concerned shall hold 
annual consultations with the Committee to determine the necessity of maintaining the subsidies.  If no such 
determination is made by the Committee, the least-  TN/RL/W/232
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developed country Member shall phase out those fisheries 
subsidies within 3 (three) years from the end of the last 
authorized period.  ]] 
   
 
[[
1. Subsidy programmes that have been established 
within the territory of any Memb er before the date of entry 
into force of this Annex and th at are inconsistent with the 
provisions of this Annex shall be: 
(a) notified to the Committee not later than 
__ days after the date of entry into force 
of this Annex; and 
 
(b) brought into conformity with the 
provisions of this Annex within __ years 
of the date of entry into force of this 
Annex.   
 
2. No Member shall extend the scope of any such 
programme, nor shall such a programme be renewed upon 
its expiry.   ]] 
   
 
 
[[ 
11.1 Any fisheries subsidy which has been established 
within the territory of a Member before the date of the 
entry into force of this Annex shall be notified to the 
Committee in no later than 90 days after that date.   
11.2 From the entry into force of this Annex, there 
shall be a period of three years for developed country Members and a period of five years for developing country Members to gradually phase out and eliminate fisheries 
subsidies that are inconsistent with the provisions of this 
Annex.  The starting point of the reduction shall be the 2003-2005 average of the fisheries subsidies prohibited 
under Article 2.  Members shall not be allowed to adopt  TN/RL/W/232 
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new prohibited fisheries subsidies or to extend the scope of 
any existing prohibited fisheries subsidy.   
11.3 Any least-developed country Member shall phase 
out its fisheries subsidies within an eight-year period, preferably in a progressive manner, from the date of entry into force of this Annex.  If such least-developed country 
Member deems it necessary to apply such subsidies beyond 
the 8-year period, it shall not later than one year before the expiry of this period enter into consultation with the 
Committee, which will determine whether an extension of 
this period is justified, after examining all the relevant economic, financial and development needs of the Member 
in question.  If the Committee determines that the 
extension is justified, the Member concerned shall hold annual consultations with the Committee to determine the 
necessity of maintaining the subsidies.  If no such 
determination is made by the Committee, the least-developed country Member shall phase out those fisheries 
subsidies within 3 (three) years from the end of the last 
authorized period.  
]] 
 
 
 
[[ VII.1 Any subsidy programme which has been 
established within the territory of any Member before the 
date of entry into force of the results of the DDA and 
which is inconsistent with Artic le 3.1(c) and Article I shall 
be notified to the Committee not later than 90 days, or in 
the case of a developing country Member 180 days, after 
the date of entry into force of the results of the DDA.  
VII.2 Provided that a programme has been notified 
pursuant to paragraph 1, a Member shall have two years, or in the case of a develo ping country Member ten  years , 
from the date of entry into force of the results of the DDA 
to bring that programme into  conformity with Article 
3.1(c) and Article I, during which period the programme 
shall not be subject to those provisions. 
 
VII.3 No Member shall ex tend the scope of any   TN/RL/W/232
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programme, nor shall a programme be renewed upon its 
expiry.  ]] 
 
 
 
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DISPUTE SETTLEMENT  
 
[[ 10. In a dispute under this Annex involving scientific 
or technical questions related to fisheries, a panel should 
seek advice from fisheries experts chosen by the panel in 
consultation with the parties to the dispute.  To this end, 
the panel may, when it deems it appropriate, establish an 
advisory technical fisheries experts group, or seek the 
assistance of the United Nations Food and Agriculture Organization or other relevant international organization in 
identifying appropriate fisherie s experts, at the request of 
either party to the dispute or on its own initiative.  
]] 
   
 
 [[ 
4.1 In a dispute under this Annex involving scientific 
or technical questions related to fisheries, a panel may seek 
advice from fisheries experts chosen by the panel, in 
consultation with the parties to  the dispute, in accordance 
with the procedures set forth in  Article 13 of the DSU.   
 
4.2 To this end, the panel may, when it deems appropriate, establish a te chnical advisory group of 
fisheries experts, or seek the assistance of the United 
Nations Food and Agriculture Organization or other relevant inter-governmental organizations in identifying 
appropriate fisheries experts, at  the request of either party 
to the dispute or on its own initiative.    
4.3 In the case of dispute relating to the small-scale 
fisheries in developing country Members, representative(s) from local stakeholder groups,  such as community fishery 
management groups, may be invited as member(s) of the 
group referred to in paragraph 2 of this Article, in 
consultation with the parties to  the dispute, in accordance 
with the procedures set forth in Article 13 of the DSU.  
]] 
 VIII.1 Where a measure is the subject of dispute 
settlement claims pursuant to Article 3.1(c) and Article I, 
the relevant provisions of Article 4 and of this Article shall 
apply.  Article 30 and the relevant provisions of this Article shall apply to disputes arising under other 
provisions of this Annex. 
 VIII.2 Where a subsidy that has not been notified as 
required by Article VI.1 is the subject of dispute settlement 
pursuant to the DSU and Article 4, such subsidy shall be presumed to be prohibited pursuant to Article 3.1(c) and 
Article I.  It shall be for the subsidizing Member to 
demonstrate that the subsidy in question is not prohibited.   
VIII.3 Where a further transfer of access rights as 
referred to in Article I.1(g) is the subject of a dispute 
arising under this Annex, and the terms of that transfer 
have not been notified as required by Article VI.3, the transfer shall be presumed to give rise to a subsidy.  It shall 
be for the payer Member to demonstrate that no such 
subsidy has arisen.  
VIII.4 Where a dispute arising under this Annex raises 
scientific or technical questions related to fisheries, the panel should seek advice from fisheries experts chosen by 
the panel in consultation with the parties.  To this end, the 
panel may, when it deems it appropriate, establish an advisory technical fisheries expert group, or consult 
recognized and competent inte rnational organizations, at 
the request of either party to the dispute or on its own initiative.  
 
VIII.5 Nothing in this Annex shall impair the rights of Members to resort to the good offices or dispute settlement 
mechanisms of other international organizations or under 
other international agreements. 
 The main focus of the discu ssions on the draft dispute 
settlement provisions has been on the proposed 
rebuttable presumption  that any non-notified fisheries 
subsidy is prohibited.  A number of delegations consider 
this proposal to be too drastic and unfair .  In their view, 
there can be many reasons other than wilful non-
compliance for a failure to notify a particular measure, including resource constraints, administrative errors, and 
genuine doubts about whether a particular measure would 
be subject to the notification requirements.  Others object to establishing substantive consequences to a procedural 
failure.  Some consider that the provisions are largely 
unnecessary , inter alia  because in their view they simply 
restate provisions found elsewh ere in the WTO Agreement, 
and because a presumption of prohibition would not relieve 
the complaining party of its burden in presenting a 
complaint concerning a non-notified measure.  Other 
delegations support the proposed reversal of the burden 
of proof, which they view as an effective mechanism to 
create incentives  for Members to notify.  In their view, 
this is particularly necessary given Members’ poor record of compliance with the notifica tion requirements of Article 
25 of the SCM Agreement.   
 Concerning the use of experts in dispute settlement , 
some delegations consider that it is unnecessary to mention 
this possibility, given that it already is provided for under the DSU. Others however support having an explicit 
provision in this regard, and some consider that it should 
be more mandatory (“shall” rather than “should” rather than “can”).   
   TN/RL/W/232
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[[ 3.4      Whenever a Member has reason to believe that 
an actionable subsidy being granted or maintained by 
another Member, results in any adverse effects to the 
interests of other Members as defined in ASCM Article 5 
or adverse effects to fishery resources as defined in Article 7.1 to this Annex, except as otherwise provided in this 
Annex, such Member may s eek remedies in accordance 
with Article 7 of the ASCM.  
]] 
 
   [[ 
VIII.1 Where a measure is  the subject of dispute 
settlement claims pursuant to Article 3.1(c) and Article I, 
the relevant provisions of Article 4 and of this Article shall 
apply.  Article 30 and the relevant provisions of this 
Article shall apply to disputes arising under other 
provisions of this Annex.  
VIII.2  Where a further transfer of access rights as referred 
to in Article I.1(g) is the subject of a dispute arising under this Annex, and the terms of that transfer have not been 
notified as required by Article  VI.3, the transfer shall be 
presumed to give rise to a subsidy.  It shall be for the payer Member to demonstrate that no such subsidy has arisen. 
 
VIII.3   Where a dispute arising under this Annex raises scientific or technical questions related to fisheries, the 
panel should seek advice from fisheries experts chosen by 
the panel in consultation with the parties.  To this end, the panel may, when it deems it appropriate, establish an 
advisory technical fisheries expert group, or consult 
recognized and competent inte rnational organizations, at 
the request of either party to the dispute or on its own 
initiative.  
 
VIII.4   Nothing in this Annex shall impair the rights of 
Members to resort to the good offices or dispute settlement mechanisms of other international organizations or under 
other international agreements.
  ]]  TN/RL/W/232 
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Textual Proposals Chairman's Text Delegations' Comments on Chairman's Text 
 
OTHER PROVISIONS  
 
 
[[ Review  
4.1 Articles 2 and 3 shall be reviewed after five years 
beginning with the date of the entry into force of this 
Agreement and thereafter every five years. 
4.2 The Permanent Group of Experts established 
under Article 24.3 of the SCM Agreement shall periodically review the subsidisation practices of Members 
to which this Annex applies and produce a comprehensive 
report thereon on a biannual basis.  The report of the PGE shall be published forthwith. Upon request by any 
Member, the subsidisation practices of a developing 
country Member shall also be subject to a review.  
]] 
 
 
[[ 10.   The provisions of this Annex shall be reviewed by 
the Committee on Subsidies and Countervailing Measures 
after a period of five years fr om its entry into force with a 
view to making any necessary modification to this 
Annex.  ]] 
  [[ 
Preamble  
 
Members, 
Recalling  the commitment at Doha to enhance the mutual 
supportiveness of trade and environment; 
Noting  the necessity to strengthen disciplines on subsidies 
in the fisheries sector; 
Conscious  of the negative effect s of overcapacity and 
overfishing on the fisheries resources; 
Reaffirming  that provisions for special and differential 
(S&D) treatment are an integral part of the WTO 
Agreements;     TN/RL/W/232
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Determined  to strengthen ASCM provisions with a view to 
making them more precise, effective and operational; 
Considering  the social and economic importance of the 
fisheries sector to developing country Members; 
Hereby agree  as follows: 
 
[...] 
 
Review  
 9.1 The provisions of this Annex shall be reviewed by 
the Committee after a period of 8 (eight) years from the 
date of its entry into force,  with a view to determining 
whether any modification is necessary.  
]] 
 
  
[[ Review  
 
8. The Committee on Subsidies and Countervailing 
Measures shall review the implementation and operation of 
this Annex every __ years,  taking into account the 
objectives thereof. In this regard, the Committee shall, as 
appropriate, request information from persons and 
organizations with expertise in fisheries management, conservation and stock assessment, such as the United 
Nations Food and Agriculture Organization and regional 
fisheries management organizations.  
]] 
 
 
 [[ 
Miscellaneous provisions  
 
6.     Nothing in this Annex shall be construed to prevent a 
Member from adopting a trade measure, consistent with 
the relevant provisions of the GATT 1994, where 
appropriate.   ]] 
 
 
  TN/RL/W/232 
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[[ Preamble  
 
Members, 
Recalling  the commitment at Doha to clarify and improve 
WTO disciplines on fishery subsidies.   
Noting  the current state of world fishery stocks and the 
desire of Members to address subsidies that have a harmful 
effect on them;   
Conscious  of the negative effect s of overcapacity and 
overfishing on these fisheries resources;   
Reaffirming  that provisions for special and differential 
(S&D) treatment are an integral part of the WTO Agreements;   
Determined  to strengthen ASCM provisions with a view to 
making them more precise, effective and operational in relation to fisheries;   
Considering  the social and economic importance of the 
fisheries sector to developing country Members;   
Hereby agree  as follows:   
 
[...] 
 
Review  
 10.     The provisions of this Annex shall be reviewed by 
the Committee after a period of 8 (eight) years from the 
date of its entry into force,  with a view to determining 
whether any modification is necessary
.  ]] 
 
  
__________