. /.   WORLD TRADE  
ORGANIZATION  TN/RL/GEN/156 
2 May 2008 
 (08-2098) 
Negotiating Group on Rules Original:   English 
  
 
FISHERIES SUBSIDIES - DE MINIMIS EXEMPTION 
 
Communication from Canada
 
  
 The following communication, dated 30 April 2008,  is being circulated at the request of the 
Delegation of Canada.  
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Introduction 
 
1. During the course of the fisheries subsidi es negotiations, various Members have suggested 
that any eventual prohibition of subsidies to the fi sheries sector should also include an exemption for 
programs in support of small-scale fishing activities,  or small programs.  However, while several 
alternatives have been raised and discussed in th e negotiating group, the term s small programs, small-
scale fishing and artisanal fishing activities have proven very difficult to define to the group's 
satisfaction.    2. Many discussions on this issue have been re lated to these issues in relation to developing 
countries.  While Canada certainly agrees that sma ll-scale or artisanal fishing activities are an issue 
that must be addressed in the context of developing c ountries, it has often stated that this issue is, in 
fact, a reality for many Members, developing count ry and developed country members alike.  The 
Chairman's first draft text proposal provided special  and differential treatment that would seem to be 
directed at this issue for developing countries, bu t was silent on this issue with respect to other 
Members.    
3. In line with the belief that disciplines should be  transparent, workable, enforceable, and build 
on existing ASCM principles, Canada is proposing to  add a provision to the fisheries annex, proposed 
as paragraph "f" under Article II:  General Exceptions, that would allow Members to provide a certain 
amount of support to fishing activities within waters subject to a Member's national jurisdiction, as 
long as the value of programs does not exceed a set per centage of the landed value of fish harvested in 
these waters.  As part of Article II, this new provisi on would be subject to all other provisions of the 
proposed Annex.  That is, any subsidies provided under this provision would be subject to the 
Member having a fisheries management system pursuant to Article V of the Chairman's proposed Annex, and the notification provisions of Article VI of the proposed Annex.   
 
4. In this context, Canada is pleased to pr esent for Members' consideration, the following 
proposal for an additional provision in Article II of the Chairman's proposed Annex VIII of the SCM Agreement.  This proposal should not be regard ed as Canada's final position on this issue.   TN/RL/GEN/156 
Page 2  
 
  New Text Provision for Annex VIII, Article II(f) 
 
Article II 
 
General Exceptions  
 
 Notwithstanding the provisions of Article I, a nd subject to the provision of Article V:   
 
 (a) … 
 
(f) Nothing in Article I shall prevent a Me mber from providing subsidies referred 
to in Article I that do not otherwise fa ll 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 su bsidies per Member provided under 
this exception does not exceed X% of the average landed value of fish 
harvested in these waters for the thre e preceding years for which data is 
available.   
 
  
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