WORLD TRADE  
ORGANIZATION  TN/RL/GEN/179 
28 March 2011 
 (11-1517) 
Negotiating Group on Rules Original:   English 
  
 
PROPOSAL ON TECHNICAL ASSISTANCE  
FOR MEETING FUTURE WTO FISHERIES  
SUBSIDIES OBLIGATIONS 
 
Communication from Ecuador and Egypt
 
 
  The following communication, dated 23 March 2011, is being circulated at the request of the delegations of Ecuador and Egypt.   
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 1. The importance of appropriate and effective provisions for S&DT within new WTO rules on 
fisheries subsidies is emphasized by the negotiating mandate set forth in Annex D of the Ministerial 
Declaration of Hong Kong, and has been repeated ly noted by the [governments of the sponsors], 
among others.
1  
2. In order to fulfil the Hong Kong mandate, it will  be necessary to adopt rules for S&DT that 
preserve the ability of developing country governments to invest in the sustainable development of 
their fisheries sectors.   
3. The proper functioning of the proposed new rules — and thus the fulfilment of the 
Hong Kong negotiating mandate — w ill also depend on the availability of technical assistance.  
Along with many delegations from developing countries, we have already noted the importance of 
technical assistance as a tool enabling developi ng countries to participate effectively in new 
disciplines.2  Appropriate technical assistance will not only help developing countries meet the 
requirements of new fisheries subsidies rules, but w ill also contribute directly to the overarching goals 
of achieving sustainable fisheries and equitable trade. 
4. We have previously indicated our support for th e architecture and ambition of the Chair's text 
of November 2007 as a sound basis for negotiation.3 We have specifically noted that Article V, 
although still requiring technical refinement, is a co rnerstone of the draft text because it provides a 
basis for building a model of adequate fisheries ma nagement requirements for those Members that use 
the flexibilities and exceptions to grant subsidies. Ho wever, an indispensable fact on the matter that 
should be fully taken into account is the need for flexibility to implement it under diverse national or 
local circumstances, and of the institutional and fi nancial constrains con fronting most developing 
countries.   
5. Our support for the architecture and ambition of the Chair’s text does not, however, remove 
the need to improve important elements of its langu age.  In this submission, we provide additional 
                                                      
1 See, e.g. TN/RL/W/241/Rev.1 
2 TN/RL/W/234 
3 Id. TN/RL/GEN/179 
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  thoughts on how technical assistance can be made most effective, and we propose specific revisions to 
draft Article III.4 to strengthen its provisions, which states the following: 
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 assist ance in this regard, bilaterally and/or 
through the appropriate international organizations.  
6. We also take note of the importance given to the question of technical assistance by many 
other delegations.  In particular, we refer Memb ers to the submission made by the ACP and SVE 
groups in May of 2008 (TN/RL/GEN/158).  Our pro posal below seeks to incorporate and build upon 
certain elements of the ACP/SVE proposal. 
The Need for Technical Assistance for Full Implementation of Art. V 
7. According to the World Bank, inadequate mana gement of the world's fisheries leads to 
economic losses conservatively estimated at US$50 billion every year.
4  These losses are undoubtedly 
suffered disproportionately by developing countries, given the predominance of developing country 
EEZ's as sources of fish and fisheries-related employm ent, and the relatively weaker state of fisheries 
management in many developing countries in  comparison to developed economies.    
8. The link between proper fisheries manageme nt and maximizing economic returns from 
fishing is especially important where developing co untries seek to use subsidies to improve sectoral 
performance.  Given the institutional and financial constraints experienced by fisheries agencies in 
many developing countries, technical assistance to support improved fisheries management should be 
viewed as essential component of special and di fferential treatment mandated by the Hong Kong 
Declaration. 
9. While specific approaches to fi sheries management must vary according to local conditions 
and needs, the fundamental elements of fish eries management are well-known and essentially 
universal. The objective of fisheries management is  to achieve a balance between industrial activity 
and conservation of productive marine ecosystems. Ac hieving this balance requires a series of actions 
that, in turn, depend on public investment and government capacity. These actions include: 
(a) developing an adequate scientific basis to support management policies, including a 
basic assessment of the biological resources in the fishery (i.e., at least rudimentary 
stock or multi-stock assessment) and of existing levels of industrial capacity 
(i.e. effective fishing power); 
(b) developing an appropriate juridical and nor mative regime to set science-based limits 
and controls on fishing (whether thr ough "input" or "output" controls); 
(c) developing effective administrative and enforcement mechanisms (institutional 
capacities) to implement fisheries manageme nt policies and enforce relevant lesson 
regulations (i.e. systems of "monito ring, surveillance, and control"). 
10. For developing countries, public investment in these areas of activity is a necessary 
prerequisite to the sustainable growth and develo pment of their fishing industries. Moreover, as the 
World Bank report clearly demonstrates, investing in proper fisheries management is financially wise. 
                                                      
4 World Bank and Food and Agriculture Organization, The Sunken Billions. The Economic Justification 
for Fisheries Reform , World Bank, Washington DC (2008).  TN/RL/GEN/179 
 Page 3 
 
 
  In short, technical assistance to improve fisherie s management in developing countries can make an 
important contribution to the goals articulated by  the Hong Kong mandate on fisheries subsidies. 
11. We note several areas where we think technical  assistance will be particularly necessary and 
useful, including:  
(a) With regard to stock and capacity assessm ents, there exists a growing body of 
technical knowledge demonstrating afford able approaches to quantifying the 
biological and industrial baselines in data- poor fisheries. Technical assistance is and 
should be applied to help develop the ins titutional and physical infrastructure needed 
to collect and analyze basic data. 
(b) Similarly, technical assistance can and should be applied to improving the capacity of 
fishermen to participate in fisheries management requirements, such as by assisting 
with technologies and techniques for collec ting catch data, participating in vessel 
registration and monitoring regimes, a nd developing (where appropriate) strong 
fisheries collectives to join in "co- management" activities alongside government 
authorities.   
(c) With regard to improving regulatory norms and mechanisms employed by developing 
country governments, through assistance to fisheries management agencies, including 
through training and capacity building progr ams, financial support for developing 
country participation in RFMOs and other international management systems, and 
transfer of normative and institutional "best practices".   
(d) With regard to enforcement of fisheries regulations, where developing countries face 
particular challenges to monitor and police their EEZs, particularly where EEZ 
resources are today subject to fishing activities by fleets from many different nations. Especially as a number of major market countries increase their border controls against trade in illegally caught fish, tec hnical assistance to de veloping countries 
MCS capabilities is directly relevant to main taining mutually beneficial international 
trade in fisheries products.  
12. As we have previously noted
5, an important element in training and technical assistance will 
be the notifications Members will have to submit to the WTO regarding their fisheries management 
systems for fisheries receiving otherwise prohibited s ubsidies. The preparations of these notifications 
will themselves require significant activity and capacity  on the part of fisheries management agencies, 
for which technical assistance would be highly appropriate. 
13. The Chair’s text further proposes that all Members establish domestic enquiry points to 
answer questions concerning their fisheries manage ment systems, regardless of whether the Member 
provides subsidies to its fisheries.  While co-sponsor s supports this requirement as in keeping with the 
need for transparency and consistent with the su stainability objectives of the fisheries subsidies 
negotiations, we note the potential resource burde n on less developed Members and the need for 
technical assistance in the establishment and maintenance of such enquiry points.  
Principles underlying effective language on Technical Assistance 
14. In our view, language on technical assistance w ithin the new fisheries subsidies rules should 
reflect several important principles: 
                                                      
5 TN/RL/W/241/Rev. 1 TN/RL/GEN/179 
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  (a) First, the establishment of mechanisms to provide technical assistance and the 
facilitation of such assistance should be a mandatory obligation accepted by Members. We align ourselves calls from ot her delegations (including the ACP and 
SVE groups) to strengthen the effectiveness of that obligation.     
(b) Second, not just the promise but the actual delivery of effective technical assistance is 
of particular importance.  We support the creation of mechanisms and procedures to 
promote and facilitate compliance with the technical assistance obligation.   
(c) Third, technical assistance under this ag reement should be "new and additional" 
assistance, with consideration of the need for long-term sustainable funding.  
(d) Fourth, while technical assistance is aimed at assisting developing countries to meet 
their obligations under new fisheries subsid ies rules, it also has as a fundamental 
purpose ensuring the sustainability of fisheries production and trade. Therefore, to preclude perverse incentives to subsidize, a nd to ensure the greatest environmental 
benefit from the establishment of fisheries management structures, access to technical assistance for fisheries management should be independent of a Member’s subsidy 
programs or future subsidy plans for its fisheries.  
Elements of the Proposal  
15. The revisions to Art. III.4 proposed below are intended to strengthen the effectiveness of the 
technical assistance obligation in the following ways: 
(a) By strengthening the legal obligations contained in Art. III.4, indicating that 
developed country Members accept a genera l obligation to facilitate and provide 
technical assistance hereunder; 
(b) By creating mechanisms and procedures within the WTO SCM Committee and the 
WTO Secretariat for the regular review of the implementation of Art. III.4; and 
(c) By proposing the establishment of a new Joint Fisheries Management Technical 
Assistance Mechanism through cooperati on between the WTO, FAO, the World 
Bank, GEF, regional international devel opment banks, and bilateral aid agencies, 
aimed at creating a source of new and a dditional funding for, and ensuring the 
delivery of, technical assistance to promote compliance with the core obligations of 
Art. V.  The concept, which is intr oduced here for discussion and further 
development, would not necessarily require  creating a new fund, but rather would 
create a mechanism for increasing and coordinating the assistance offered by relevant 
institutions to support developi ng country implementation of  Article V.  Building on 
the past involvement of the FAO Secretariat in technical discussions surrounding these negotiations, we propose (and are prepar ed to help facilitate, as appropriate) the 
active involvement of the FAO, the World Ba nk, GEF, and other relevant institutions 
in the discussion and refinement of this proposal.  TN/RL/GEN/179 
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  Proposed Legal Text  
 
III.4.1 Members recognize that the ability of de veloping country Members, especially least-
developed countries and small, vulnerable economies, to adopt, implement and sustain measures 
necessary for complying with the re quirements of this Annex, includi ng the conditions and criteria set 
forth in this Article and in Article V should be  significantly enhanced by technical assistance.  
Accordingly, Members shall provide such assistance  in an effective and timely manner, and shall 
establish mechanisms for, and facilitate, the provision of technical assistance in this regard, bilaterally 
and/or through the appropriate international organizations.   
4.2 The Committee on Subsidies and Counterva iling Measures shall establish a Sub-Committee 
dealing exclusively with issues related to techni cal assistance and support programs under this Annex, 
specifically as regards fisheries management systems and measures related thereto.  The Sub-Committee shall review the effectiveness of the te chnical assistance provided to developing country 
Members, and of any Joint Fisheries Management Technical Assistance Mech anism or similar entity 
to be created in accordance with Art. 4.3 of this  Annex.   The Sub-Committee shall periodically report 
its findings to the Committee on Subsidies and Countervailing Measures and the Committee on Trade 
and Development.    
4.3 The WTO Secretariat shall seek to establish,  in cooperation with a ppropriate international 
entities such as the FAO, the World Bank, the GEF, regional development banks, and bi-lateral aid 
agencies, a Joint Fisheries Management Technical  Assistance Mechanism, with the purpose of 
identifying and coordinating new and additional f unding for, and ensuring the delivery of, technical 
assistance to promote compliance with the core obligations of Art. V. 
 
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