. /.   WORLD TRADE  
ORGANIZATION  TN/RL/W/202 
6 March 2006 
 
 (06-0962) 
Negotiating Group on Rules Original:   English 
  
 
FISHERIES SUBSIDIES FOR SOCIAL SECURITY AND WELFARE 
 
Communication from the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and Matsu
 
 
  The following communication, dated 3 March 2006 is being circulated at the request of the 
Delegation of the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu. 
 
_______________ 
 
Introduction 
 
1.  In Doha, Ministers agreed to aim to clarify and improve WTO disciplines on fisheries subsidies with a view to enhancing the mutual s upportiveness of trade and the environment.  This goal 
was reaffirmed in Hong Kong in December 2005, with  greater detail, in the Ministerial Declaration 
calling for the strengthening of the disciplines including through the prohibition of fisheries subsidies that contribute to over-capacity and over-fishing.  To this end, the Ministers called on Members to 
undertake promptly further substantive wo rk on the details of the disciplines. 
 2.  Much useful work on fisheries subsidies has already been done in the Negotiating Group on 
Rules.  Members have presented numerous proposals on what should be permitted and what should be 
prohibited subsidies, including one submitted jointly  by Japan, Korea, and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, (TN/RL/W/172).  In this paper, the co-sponsors 
suggest that fisheries subsidies that have positiv e effects on fish stock recovery, social security, 
welfare, and research and development, should be classified as non-actionable subsidies.  These areas, 
as well as other specific subsidy areas, require further elaboration and discussion.  This paper, in an 
effort to enhance progress in the negotiations, aims to pick up on the area of social security and 
welfare  for additional consideration of the type of fisheries subsidies that should be treated as non-
actionable.  We reserve the right to make further c ontributions on this topic and other areas related to 
fisheries subsidies in the course of negotiations.  Fisheries Subsidies for Social Security and Welfare 
 
3.  At the outset, we wish to reaffirm our commitment to the sustainable development of the fisheries sector through proper management measures.   We have always suppo rted, and will continue 
to support, the strengthening of the disciplines on fi sheries subsidies within the current framework of 
the SCM Agreement by prohibiting subsidies that  directly contribute to over-capacity and over-
fishing, while allowing measures that cont ribute to proper resource management.   
 4.  However, as we engage in the discussion about fisheries subsidies, it would be unrealistic and 
improper to disregard the socio-economic considerati ons for many of these subsidies.  The fisheries 
industry is an inherently high-risk industry, which is  at the mercy of uncontrollable natural forces.  It 
is also, in many countries, one of the traditional i ndustries that are essential to rural development, and 
to the preservation of culture and the traditional lifest yle.  In addition, for many developing country 
Members, fisheries is an important factor in their economic development.  For these reasons, TN/RL/W/202 
Page 2  
 
  governments have maintained for many years policies of providing assistance  to the fisheries sector 
for socio-economic reasons.  The measures taken pur suant to these legitimate social policies aimed 
specifically at the fisheries sector, on condition they have no, or at most minimal, trade- or 
production-distorting effects, should be categorized as non-actionable. 
 5.  In addition, in recent years, government a ttempts to ease environmental concerns associated 
with fishing and to comply with various intern ational fisheries management schemes have been 
encroaching on the livelihoods of many of these fishing communities, thus directly impacting rural 
welfare and social stability.  Any social security and welfare measures taken to alleviate the effects of 
such impact, to our mind, work in tandem with  resource management measures and contribute to 
proper resource management.  Therefore, social security and welfare payments should also be 
categorized as non-actionable. 
 6.  In this respect, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
proposes that subsidies for the following types of  social security and welfare programmes be 
categorized as non-actionable. Please note that the following are examples only; this list is not 
exhaustive and we are open to sugg estions for further additions.  
  (i) Subsidies for the Relief of Natural Disast ers at Sea: e.g. payments to cover in whole 
or in part the premiums for insuring fishermen and fishing vessels in case of natural 
disasters at sea.  
  (ii) Subsidies for Off-Season: e.g. sustainable livelihood payments to fishermen during 
their off-season undertaken for fish stock recovery. 
 
 (iii) Unemployment Relief and Early Retirem ent Fund: e.g. payments to fishermen who 
become unemployed or retire early as a result of government policies or measures taken pursuant to the proper management of fisheries resources, structural adjustment 
for the sustainability of fishing stock, or the implementation of reduction in TAC 
pursuant to the regulation of RFMOs, wh ich leads to the suspension of fishing 
activity. 
 
 (iv) Subsidies for Fishermen Re-education,  Re-training, or Alternative Employment 
Assistance: e.g. vocational re-training fo r fishermen adopting new, environmentally-
safe equipment or transferring out of catc hing unsustainable fisheries; educational 
training or low-interest loan to assist fi shermen in finding alternative employment, 
including in sustainable fisheries and non-fishery sectors. 
 
Conclusion 
 
7.  The Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu proposes in this 
paper a way to balance trade, environment, and soci al security and welfare concerns.  In our view, the 
above-mentioned types of fisheries subsidies offe r governments some flexibility in addressing social 
security and welfare concerns inherent in the fi shing communities, as well as  those that result from 
government policies for environmental and sustainable fisheries management.   These subsidies also have no, or at most minimal, trade- or production-distorting effects.  They should therefore be categorized as non-actionable subsidies.  We welcome any suggestions or comments from WTO 
Members to further our discussion on this issue.   
__________