. /.   WORLD TRADE  
ORGANIZATION  TN/RL/W/226 
20 March 2008 
 (08-1265) 
Negotiating Group on Rules Original:   English 
   
SMALL, VULNERABLE ECONOMIES (SVEs) - STATEMENT ON KEY  
ASPECTS OF ARTICLE III OF THE FISHERIES SUBSIDIES ANNEX 
 
Communication from Barbados, Cuba, El Salvador, Fiji, Honduras, 
 
Mauritius, Papua New Guinea and Tonga  
 
 
 The following communication, dated 19 March 2008, is being circulated at the request of the Delegations of Barbados, Cuba , El Salvador, Fiji, Honduras, Mauritius, Papua New Guinea and 
Tonga 
 
_______________ 
 
 1. The co-sponsors of this document are all pr oponents of the WTO Work Programme on Small 
Economies which has its mandate in Paragra ph 35 of the Doha Ministerial Declaration
1 and 
Paragraph 41 of the Hong Kong Ministerial Mandate.2  The Small, Vulner able Economies (SVEs) 
have actively participated in the negotiations on disciplines on fisheries subsidies with the aim of 
contributing to fulfilling the Ministerial mandates on  fisheries subsidies negotiations and to ensure 
that there is an appropriate balance found betw een sustainability concerns and the development 
priorities of developing countries, especially for th ose countries which have little or no impact on over 
fishing and over capacity.  On this point it is worth noting that the total share of global marine capture 
fisheries for the SVEs is less than 0.72 per cent.3 
 2. The proponents of this submission have positivel y engaged in discussions in the Negotiating 
Group on Rules through the submission of variou s documents, most recently TN/RL/W/210 in 
June 2007, and through the numerous interventions  by proponents since 14 December 2007 at the 
time of the formal introduction of the first draft of the Annex on Fisheries Subsidies. 
 
                                                     
 
1 We agree to a work programme, under the auspices of the General Council, to examine issues relating 
to the trade of small economies.  The objective of this work is to frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, and not 
to create a sub-category of WTO Members.  The General Council shall review the work programme and make 
recommendations for action to the Fifth Session of the Mini sterial Conference. 
2 We reaffirm our commitment to the Work Programme on Small Economies and urge Members to 
adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the 
multilateral trading system, without creating a sub-categor y of WTO Members.  We take note of the report of 
the Committee on Trade and Development in Dedicated Session on the Work Programme on Small Economies 
to the General Council and agree to the recommendations on future work.  We instruct the Committee on Trade 
and Development, under the overall responsibility of the General Council, to continue the work in the Dedicated Session and to monitor progress of the small economies' proposals in the negotiating and other bodies, with the 
aim of providing responses to the trade-related issues of small economies as soon as possible but no later than 
31 December 2006.  We instruct the General Council to re port on progress and action taken, together with any 
further recommendations as appropriate, to our next Session. 
3 FAO data.  Figure based on the average for 2004-6. TN/RL/W/226 
Page 2  
 
  3. Article III on Special and Differential Treatment (S&DT) is a critical element in the balance 
of rights and obligations in the Annex and althou gh we welcome some elements of Article III we 
remain concerned that some of the conditionality provisions contained therein effectively prevent 
SVEs from benefiting from exemptions that are consis tent with the realities of their fisheries, the 
types of subsidies which these economies offer a nd the developmental path which these countries 
wish to follow to allow for diversification of their economies. 
 4. This concern is most pronounced in relation to the need for SVEs to benefit from an 
exemption from the prohibition of subsidies in Artic le I.1.c of the Chair's text.  These forms of 
subsidies which include, inter alia , operational costs for fuel, ice, bait, license fees, insurance and 
subsidies for landing, handling or in-or near port processing activities are exactly the forms of 
government assistance which SVEs could provide to their fishers.  These are the specific forms of 
assistance which the SVEs have consistently stat ed should be allowed for those economies which 
have negligible or no impact on over fishing or over  capacity.  In the experience of the SVEs, these 
forms of operational subsidies are more affordable  and manageable for our economies given our small 
administrations.  Moreover, in terms of sustaina bility aspects, we are able to better monitor and 
regulate these forms of government support unlike cap ital subsidies (e.g. vessel construction) which 
are far more costly to remove after the fact (e .g. decommissioning schemes).  Subsidies for processing 
activities are also crucial elements of our development trajectories and are consistent with our plans to progress into more diverse, value added components of the fisheries production cycle.  
5. In formal and verbal submissions to the ne gotiating group, the SVEs and other developing 
countries have expressed the need for additi onal flexibility regarding the programmes under 
Article 1.1.c.  The SVEs have made reference to  the need to increase the length of the vessel in 
Article III.2.b.2 to 25 metres to take into account th e size of the small scale fishing vessels used in our 
maritime space.  Requests have also been made by  developing countries to benefit from an exemption 
from Article I.1.c subsidies.  
 
6. Some form of additional flexibility regarding Article I.1.c subsidies is necessary if these 
fisheries subsidies disciplines are to have real a nd practical meaning for the developing small island 
and coastal states of the WTO.  These countries rely on fisheries for diversification, food security and 
livelihoods, and their miniscule share of global trad e and marine capture fisheries demonstrates that 
they do not, either individually or cumulatively, impa ct on over fishing and over capacity. It is clear to 
the SVEs that 'one size does not fit all' and that c onsequently in the context of Article I.1.c subsidies a 
degree of additional flexibility in S&DT is necessar y considering the profound importance of fisheries 
to their national socio-economic development; noting that the SVEs have not requested a substantial 
roll-back of the fisheries management  principles established in Article V. 
 
7. The SVEs are currently undertaking additional t echnical work with the aim of proposing, if 
necessary and at the appropriate time, additional options  to take our concerns into account in a revised 
text.  This current document has been tabled in the Negotiating Group to reiterate our needs and to 
call on the Negotiating Group to l ook for appropriate solutions to confront these concerns.  
 
__________