WORLD TRADE  
ORGANIZATION  TN/RL/GEN/79/Rev.4 
13 March 2007 
 (07-1047) 
Negotiating Group on Rules Original:   English 
  
 
POSSIBLE DISCIPLINES ON FISHERIES SUBSIDIES 
 
Paper from Brazil
 
 
Revision  
 
  The following communication, dated 8 March 2007, is being circulated at the request of the 
Delegation of Brazil
. 
 
_______________ 
  
1. Brazil welcomes the renewed debate on fisheri es subsidies at the Negotiating Group on Rules 
(NGR) meeting, in February 2007.  In order to  contribute to the discussions on the subject, Brazil 
presents the following revised framework for disciplines on fisheries subsidies. 
2. It should be noted that this submission builds upon and expands on Document 
TN/RL/GEN/79/Rev.3, so as to incorporate comments made by Members and to further develop some 
of the suggested ideas put forward in the previous sessions of the NGR.  
3. This legal draft remains a work in progress and does not constitute Brazil’s final position on 
the matter. TN/RL/GEN/79/Rev.4 
Page 2  
 
   
ANNEX VIII TO THE AGREEMENT ON SUBSIDIES AND  
COUNTERVAILING MEASURES 
 
 
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 effects 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; 
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: 
Article 1 
Definitions and coverage 
1.1 This Annex provides for specific provisions regard ing fisheries subsidies a nd it is an integral 
part of the Agreement on Subsidi es and Countervailing Measures (ASCM). 
1.2 This Annex shall not apply to inland fisheries
1 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 ("fish ery subsidy").  Fisheries subsidies shall 
encompass 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 "Inland fisheries" are fisheries which are carried  out in freshwater or estuaries of a Member and 
whose target species are those that sp end all of their lif e-cycle therein. 
2 "Aquaculture" is the farming of aquatic organism s, including fish, mollusc s and crustaceans, 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 paragraph 1 of 
Article XVI of GATT 1994. 
4 "Maritime jurisdiction" encompasses the Territorial Sea and the Exclusive Economic Zone, which are 
defined in the United Nations Convention of the Law of the Sea (UNCLOS).  TN/RL/GEN/79/Rev.4 
 Page 3 
 
 
  1.3.2 "Public services of fisheries resource mana gement" shall not be considered a fishery 
subsidy.5 
 
Article 2 
Prohibition 
 
2.1 A Member shall neither grant nor maintain any fishery subsidy.  
Article 3 
Exceptions 
 
3.1 The following fisheries subs idies, 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:  
(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 da ta collection, surveys, data analysis, and 
stock monitoring, sampling and assessment; 
(c) subsidies related to fisheries stock enhanc ement, including marine conservation and 
protection, marine environment restoration, artificial reefs and by-catch mitigation devices; 
(d) subsidies aimed solely at improving vessel and crew safety
6, 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 su ch vessels, whether they are permits, 
licenses, fish quotas or any other form of harvesting rights, are permanently 
revoked and may not be reassigned;  and 
                                                      
5 "Public services" are all services supplied in the ex ercise of governmental authority, which is carried 
out neither on a commercial basis nor in competition with ot her services suppliers.  "Public services of fisheries 
resource management" are any governmental public se rvice supplied with the objective of improving the 
management of fisheries resources. 
6 Programmes or activities aimed primarily at vessel m odernisation or repair do not fall within this sub-
paragraph.  The construction of vessels is not permitted under this sub-paragraph. TN/RL/GEN/79/Rev.4 
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  (iii) 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; 
(f) other fisheries subsidies that are indirec tly linked to harvesting activities of capture 
fisheries, such as fishing port facilities a nd 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.  
Article 4 
Special and Differential Treatment of Developing Country Members 
 
4.1 Notwithstanding the provisions set out in Artic les 2 and 3, developing country Members shall 
be allowed to grant or maintain fisheries subsidies to:   
 
(a) fishing activities related to the subsisten ce 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 genera l infrastructure, benefiting those fishermen 
and their families; 
(b) fishing vessel construction, repair or v essel modernization or gear acquisition or 
improvement, provided that the purpose is to exploit: 
(i) fisheries in the Member’s maritime jurisdiction;  or 
(ii) high seas fishing quotas or any other rights established by a regional fisheries 
management organization (RFMO) or  a regional fisheries management 
arrangement. 
(c) fuel, bait and/or ice supplied for fishing activities. 
Article 5 
Fishery Adverse Effects 
 
5.1 No Member should cause, through the use of an y fishery subsidy referred to in Article 3 and 
Article 4.1 (b) and (c), fishery adverse effects to the interest of other Members.  
 
5.2 For the purpose of this Annex, a fishery adve rse 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 
                                                      
7 Those 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, including, 
but not necessarily, the family memb ers;  (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.   TN/RL/GEN/79/Rev.4 
 Page 5 
 
 
  scientific evidence available;  fisheri es management control measures (fisheries 
monitoring, surveillance, control and en forcement mechanisms);  mechanisms 
established to identify and qua ntify 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.  
Article 6 
Notification 
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 Artic le 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 areas; 
(c) the criteria and scientific information used  to set the status of the fishery; 
(d) whether the fishery in question is unde r management of a regional fisheries 
management organization or arrangement a nd which are the nature of the monitoring 
and the quantitative limits applicable to the Member;  
(e) national fisheries management systems in pl ace, with sufficient information to enable 
Members to evaluate and to understa nd their framework and operation;  and 
(f) government-to-government payment for access by foreign vessels to fishing resources 
of a developing country’s maritime juri sdiction or to quotas or any other rights 
established by any regional fishery management organization or arrangement ("access rights"), with breakdown by recipient c ountry, 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. 
                                                     
 
8 Where relevant international standards and practices  exist, Members shall use them, or the relevant 
parts of them, as a basis for their national fisheries 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 information 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 international standards and practices. TN/RL/GEN/79/Rev.4 
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  6.3 Any fishery subsidy which is not notified sha ll be deemed to cause a fishery adverse effect. 
 
Article 7 
Monitoring 
7.1 Upon request of a Member, at any time, the Secretariat shall review a notification made 
pursuant to Article 6, and where necessary ma y require additional information from the 
subsidizing Member concerning the notified fish ery subsidy under review.  The Secretariat 
shall report its findings to the Committee.  The Committee shall promptly review the findings of the Secretariat with a view to determini ng whether the conditions and criteria set out in 
Articles 3, 4 and 5 have been met.  The pro cedure 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 dete rmination 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 w as referred to the arbitration body.  The DSU 
shall apply to arbitrations c onducted under this paragraph. 
 
Article 8 
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. 
 
Article 9 
Review 
9.1 The provisions of this Annex shall be review ed 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. 
 
Article 10 
Transitional provisions 
10.1 Any fisheries subsidy which has been establishe d within the territory of a Member before the 
date of the entry into force of this Annex sh all 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 ar e inconsistent with the provisions of this 
Annex.  The starting point of the reduction shall be the 2003-2005 average of the fisheries 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.   TN/RL/GEN/79/Rev.4 
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  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 w ill determine whether an extension of this 
period is justified, after examining all the relevant economic, fina ncial and development 
needs of the Member in question.  If the Committe e determines that the extension is justified, 
the Member concerned shall hold annual consu ltations with the Committee to determine the 
necessity of maintaining the subsidies.  If no su ch 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.  
 
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