WORLD TRADE  
ORGANIZATION  TN/RL/GEN/170 
14 December 2010 
 
 (10-6704) 
Negotiating Group on Rules Original:   French 
  
 
FISHERIES SUBSIDIES: 
ARTICLES I, III, IV, V AND VI 
 
Communication from Morocco
 
 
 
 The following communication, dated 8 December 2010, is being circulated at the request of 
the delegation of Morocco.  
_______________ 
 
  This proposed text, containing amendments to the Chairman's text (TN/RL/W/213) of 
24 November 2007, reflects Morocco's views regardi ng future disciplines on fi sheries subsidies while 
maintaining the approach and structure of the te xt proposed by the Chairman, which in our view 
remains an acceptable platform for these negotiations. 
 
 In the discussion of the proposal drafted by Brazil, China, India and Mexico (TN/RL/GEN/163), submitted and examined at the meeting of 3-7 May 2010, Morocco expressed its 
support for the ideas contained in that proposal, wh ich relate mainly to special and differential 
treatment (S&D).  Morocco's present contribution a ccordingly takes up some of the amendments to 
the Chairman's text as proposed by the above-men tioned Members, notably the provisions relating to 
S&D flexibilities for the developing countries in respect  of fishery activities other than artisanal and 
small-scale fishing.   The amendments suggested by Morocco ma inly concern S&D and, more specifically, 
artisanal or small-scale fisheries.  Morocco r ecalls that pursuant to the Doha and Hong Kong 
mandates, special attention must be given to S&D and, with this in mind, it aspires, like other 
developing country Members, to achieve a negotiate d outcome with S&D that  affords the developing 
countries substantial flexibility in furthering the devel opment of their fisheries sector, in view of the 
important role played by this sector in their economic and social development.  
 In the previous proposals submitted by other Members and the Chairman's text of 
November 2007, artisanal or small-scale fisheries are defined according to criteria that could be 
interpreted differently from country to country, depending on its level of development and the level of 
organization of its fisheries sector.  
 In the absence of a universal definition for this category, Morocco has endeavoured to base 
its definition of artisanal or small-scale fisheries on objective criteria that are unambiguous for 
all Members .  These criteria are as follows: 
  1. The radius of activity, which must be confined to the inshore area within the 
territorial waters  of the Member concerned; 
 
 2. The state of the catch  when landed, which must be  fresh ;  and TN/RL/GEN/170 
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 3. The organization of the activity, characterized by unsophisticated, non-capitalistic 
structures. 
  With regard to the radius of activity confined to territorial waters , which is a criterion 
already included in the Chairman's text, it should be  emphasized that the vessels used for artisanal and 
small-scale fishing activities operate on an exclusiv ely inshore basis on account of their low level of 
autonomy at sea.  The low autonomy of these vessels compels them to make short trips, generally 
lasting no more than a day, which limits  their resource exploitation capacity. 
 
 As far as catch landings are concerned, this type of fleet is compelled to bring back its 
catch fresh, since artisanal and small-scale fish ing vessels have no freezing or refrigeration 
equipment on board .  These vessels are provisioned with large amounts of ice before each trip to 
sea.  Consequently, they are restricted to making s hort trips, generally lasting no more than a day, 
which results in a relatively low catch level.  Furthermore, given the low catch volume of these 
vessels, almost nothing is discarded at sea.  In this respect, it should be recalled that discarding at sea 
has a negative impact not only on marine resources but also on their adjacent ecosystem, and contributes to the decline in stocks of marine species.   In Morocco's view, the organization of this category of fishing activity, characterized by 
unsophisticated, non-capitalistic structures , is a criterion which enjoys a certain consensus 
expressed through different parameters in various pr oposals.  In this proposal, a new parameter is 
introduced:  the organization of fishermen into cooperatives , as a relatively unsophisticated, 
non-capitalistic form of associa tion devoted to small trades. 
  In short, Morocco considers that in the context of the developing countries, government 
support for fishery activities meeting these three criteria cannot lead to the overexploitation of 
resources and furthers the legitimate improvement of  economic and social conditions for fishermen. 
  As far as large-scale fisheries are concerne d, Morocco aligns itself with the proposal 
submitted by Brazil, China, India and Mexico in  document TN/RL/GEN/163, the provisions of which 
are based on Members' rights under international law.   In Article V on fisheries management, we have 
made a number of small changes to the proposal  by the above-mentioned co-sponsors, relating to 
regular science-based stock  assessment  and the international instruments  on which the fisheries 
management system is to be based.   Morocco's present proposal also makes further im provements relating to Articles I, IV and VI 
of the Chairman's text.  The following two point s should be emphasized in this connection: 
  - With regard to Article IV, Morocco cons iders that a Member may argue the existence 
of adverse effects in the case of a subsidy that will cause depletion of or harm to, or creation of overcapacity in respect of, straddling or highly migratory fish stocks or fish stocks in which the said Member has identifiable exploitation interests .  
Adverse effects on the purely commercial interests of a Member (irrespective of any 
effects on its capacity for exploiting resour ces of such stocks) are to be addressed 
within the framework of the current disci plines of the Agreement on Subsidies and 
Countervailing Measures (SCM Agreement). 
 
 - With regard to Article VI on notificati ons, Morocco considers that transparency is 
vital to the proper operation of the Annex.  Nevertheless, Members' obligations 
must be aligned with their obligatio n under the SCM Agreement in the sense 
that they are required to notify any subsidies granted or maintained .  This is a 
matter of internal consistency of the SC M Agreement, which must be maintained.  TN/RL/GEN/170 
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  ANNEX VIII 
 
FISHERIES SUBSIDIES  
 
Article I  
 
Prohibition of Certain Fisheries Subsidies  
 
 I.1 Except as provided for in Articles II and III, or in the exceptional case of natural disaster 
relief1, the following subsidies within the meaning of pa ragraph 1 of Article 1, to the extent they are 
specific within the meaning of paragrap h 2 of Article 1, shall be prohibited:  
  (a) Subsidies the benefits of which are conf erred on the acquisition, construction, repair, 
renewal, renovation, modernization, or any other modification of fishing vessels2 or 
service vessels3, including subsidies to boat build ing or shipbuilding facilities for 
these purposes.  
  (b) Subsidies the benefits of which are conferred on transfer of fishing or service vessels 
to third countries, including through th e creation of joint enterprises with 
third country partners.  
 
 (c) Subsidies the benefits of which are c onferred on operating costs of fishing or service 
vessels (including licence fees or similar char ges, fuel, ice, bait, personnel, social 
charges, insurance, gear, and at-sea suppor t);  or of landing, handling or in- or 
near-port processing activities for products of  marine wild capture fishing;  or 
subsidies to cover operating losses of such vessels or activities.  
  (d) Subsidies in respect of, or in the form of, port infrastructure or other physical port 
facilities exclusively or predominantly for activities related to marine wild capture 
fishing4 (for example, fish landing facilities, fish storage facilities, and in- or 
near-port fish processing facilities).  
 
 (e) Income support for natural or legal pers ons engaged in marine wild capture fishing.  
  (f) Price support for products of marine wild capture fishing.
 
 
                                                      
1 Subsidies referred to in this provision shall not be prohibited when limited to the relief of a particular 
natural disaster, provided that the subsidies are directly re lated to the effects of that disaster, are limited to the 
affected geographic area, are time-limite d, and in the case of reconstruction subsidies, only restore the affected 
area, the affected fishery, an d/or the affected fleet to its pre-disaster state, up to a sustainable level of fishing 
capacity as established through a scien ce-based assessment of the post-disaster status of the fishery.  Any such 
subsidies are subject to the provisions of Article VI.  
2 For the purposes of this Agreement, the term "fishi ng vessels" refers to vessels used for marine wild 
capture fishing and/or on-board processing of the products thereof.  
3 For the purposes of this Agreement, the term "servi ce vessels" refers to vessels used to tranship the 
products of marine wild capture fishing from fishing ve ssels to on-shore facilities;  and vessels used for at-sea 
refuelling, provisioning and other servicing of fishing vessels.  
4 It being understood that, pursuant  to Article I.1(iii), the provision of general infrastructure by a 
government is not considered to be a subsidy. TN/RL/GEN/170 
Page 4  
 
   (g) Subsidies arising from the further transfer, by a payer Member government, of access 
rights that it has acquired from another Memb er government to fisheries within the 
jurisdiction of such other Member.5 
  (h) Subsidies the benefits of which are conferred on any vessel  engaged in illegal, 
unreported or unregulated fishing.6 
 I.2 In addition to the prohibitions listed in paragr aph 1, any subsidy referre d to in paragraphs 1 
and 2 of Article 1 the benefits of which are c onferred on any fishing vessel or fishing activity 
affecting fish stocks that are in an unequi vocally overfished conditi on shall be prohibited.  
 
 
Article II  
 
7…………………………… . 
 
Article III  
Special and Differential Treatment of Developing Country Members  
 
III.1 The prohibition of Article 3.1(c) and Article  I shall not apply to least developed country 
("LDC") Members.  
 
III.2 For developing country Members other than LDC Members:  
 
 Subsidies referred to in Article I.1 shall not be prohibited where they relate exclusively 
to small-scale marine wild capture fishin g activities performed on an inshore basis 
(i.e. within the territorial waters of the Member), provided that these activities land 
their catch fresh8 and are performed by fishworkers on an individual or family basis or 
employed by associations, micro-enterprises,  cooperatives or individual boat owners. 
. 
 Fisheries management measures aimed at ensuring a sustainable level, such as the 
measures referred to in Article V, should be  implemented in respect of the fisheries in 
question, adapted as necessary to the particul ar situation, including by making use of 
indigenous fisheries management institutions and measures. 
 
(a) Subsidies referred to in Article I.1 shall not be prohibited where they relate exclusively 
to marine wild capture fishing performed on an  inshore basis (i.e., within the territorial 
waters of the Member) with non -mechanized net -retrieval, provid ed that (1) the 
activities are carried out on their own behalf by fishworkers, on an individual basis 
which may include family members, or orga nized in associations;  (2) the catch is 
consumed principally by the fishwo rkers and their families and the activ ities do not go 
                                                      
5 Government-to-gove rnment payments for access to marine fisheries shall not be deemed to be 
subsidies within the meaning of this Agreement.  
6 The terms "illegal fishing", "unreported fishing" and "unregulated fishing" shall have the same 
meaning as in paragraph 3 of the International Plan of Action to Prevent, Deter and Eliminate Illegal Unreported 
and Unregulated Fishing of the United Nations Food and Agriculture Organization.   
7 ………. (Footnote to Article II) 
  8 Fishing activities by vessels that are not e quipped with an on-board catch freezing and/or 
refrigeration system.  However, the provisioning of vessels with ice shall not be interpreted as 
constituting a freezing and/ or refrigeration system.    TN/RL/GEN/170 
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  beyond a small profit trade;  and (3) there is no major employer -employee relationship 
in the activities carried out.  Fisheri es management measures aimed at ensuring 
sustainability, such as the measures re ferred to in Article V, should be implemented in 
respect of the fisheries in question, adapte d as necessary to the particular situation, 
including by making use of indigenous fisheries management institutions and 
measures.  
 
III.3  (b)  In addition, subject to the provisions of Article V , the following subsidies referred 
to in Article I.1 shall not be prohibit ed for developing country Members other 
than LDC Members : 
 
 (a) (1)  Subsidies referred to in Articles I. 1(d), I.1(e) and I.1(f) shall not be 
prohibited . 
   (2)
 Subsidies referred to in Ar ticle I.1(a) and I.1(c) shall not be prohibited 
provided that they are used exclusively for marine wild capture fishing 
employing decked vessels not greater than 10 meters or 34 feet in length 
overall, or undecked vessels of any length.  
 
(b) (3) (2) For fis hing and service vessels of such Members other than the vessels 
referred to in paragraph (b)(2),  Subsidies referred to in Article s I.1(a) and 
I.1(c),  shall not be prohibited  where their purpose is to exploit  stocks over 
which the subsidizing Member has (i) jurisdiction, sovereignty or 
sovereign rights9 or 
  (ii) fishing quotas or any other fishing rights
10 established by a regional 
fisheries management organization or arrangement (RFMO)11 or 
applicable international instruments for identified target stocks, provided 
that (i) the vessels are used exclusively for marine wild capture fishing 
activities of such Members in respect of  particular, identified target stocks 
within their Exclusive Economic Zones ("EEZ") ;  (ii) those stocks are have 
been  subject to prior scientific status  assessment conducted in accordance 
with relevant international standards,  aimed at ensuring that the resulting 
capacity does not exceed a sustainable level as determined by their 
maximum sustainable yield. ;  and (iii) that assessment has  been subject to 
peer review in the relevant body of the United Nations Food and Agriculture 
Organization ("FAO") .12 
 
                                                      
9 For the purpose of this article, "jurisdiction,  sovereignty or sovereign rights" shall mean the 
exclusive rights a Member has und er the international law with respect to the exploitation of natural 
resources in areas such as the Territorial  Sea and the Exclusive Economic Zone.  
10 For the purpose of this article "fishing quot as or any other fishing rights" means enforceable 
quantitative limits, established through scientific assessment, imposed on fish volumes for specified 
period, or limits to fishing efforts on a given fishery, area or time as may be incorporated in conservation measures.   
11 For the purpose of this Annex, RFMOs are in ternational organizations or arrangements 
which:  (a) carries out management activities over specif ic fisheries in a determined area;  (b) are open to 
new entrants;  (c) publish a list of all conservation mea sures in force;  (d) have specific procedures to deal 
with illegal, unreported and unregulated fishing;  (e ) and have a decision-making process in accordance 
with an agreement, conven tion or procedure.   
12 If the Member in question is not a member of the FA O, the peer review shall take place in another 
recognized and competent inte rnational organization.   TN/RL/GEN/170 
Page 6  
 
  III.4 III.3
 Subsidies referred to in Article I.1(g) shall not be prohibited where the fishery in question 
is within the EEZ of a developing country Member, provided that the agreement pursuant to which the 
rights have been acquired is made  public, and contains provisions d esigned to prevent overfishing in 
the area covered by the agreement  referenced  on internationally-recognized best practices for 
fisheries management and conservation as reflecte d in the relevant provisions of international 
instruments aimed at ensuring the sustainable use and conservation of marine species,  duly ratified 
by the Member country , such as, inter alia , the Agreement for the Implementation of the Provisions 
of the United Nations Convention on the Law of  the Sea of 10 December 1982 Relating to the 
Conservation and Management of Straddling Fish St ocks and Highly Migratory Fish Stocks ("Fish 
Stocks Agreement"), the Code of Conduct on R esponsible Fisheries of the Food and Agriculture  
Organization ("Code of Conduct"), the Agreemen t to Promote Compliance with International 
Conservation and Management Measures by Fishing Vessels on the High Seas ("Compliance 
Agreement"), and technical guidelines and plans of action (including criteria and precautionary 
reference points) for the implementation of these instruments, or other related or successor 
instruments.  These provisions shall include requirements and support for science-based stock 
assessment before fishing is undertaken pursuant to the agreement and for regular assessments 
thereafter, for management and control measures, fo r vessel registries, for reporting of effort, catches 
and discards to the national authorities of the host Me mber and to relevant in ternational organizations, 
and for such other measures as may be appropriate.  
 III.5  III.4
 Members shall give due regard to the needs  and resource constraints  of developing 
country Members in complying with the requirement s of this Annex, including the conditions and 
criteria set forth in this Article and in Article V, . 
 III.6  and
 Members  shall establish mechanisms for, and facilitate, the provision of technical 
assistance  for developing country Members  in this regard, bilaterally and/or through the appropriate 
international organizations.  
  
Article IV
 
 
General Discipline on the Use of Subsidies  
IV.1 No Member shall cause, through the u se of any subsidy referred to in paragraphs  1 and 2 of 
Article 1  to the extent that it is specific within  the meaning of paragraph 2 of Article 1 , depletion 
of or harm to, or creation of overcapacity in respect of:  
(a) straddling or highly migratory fish stocks whose range extends into the EEZ of another 
Member;  or  
(b) stocks in which  another Member has identifiable fishing  exploitation  interests , including 
through user-specific quota allocations to individuals and groups under limited access 
privileges and other exclusive quota programmes.  
The existence of such situations shall be de termined taking into account available pertinent 
information, including from other relevant internatio nal organizations.  Such information shall include 
the status of the subsidizing Member's implementation  in respect to  internationally-recognized best 
practices for fisheries management and conserva tion as reflected in the relevant provisions of 
international instruments aimed at the sustainable use and conservation of marine species , duly 
ratified by the Member country , such as, inter alia , the Fish Stocks Agreement , the C ode of 
Conduct , the Compliance Agreement , and technical guidelines and plans of action (including criteria 
and precautionary reference points) for the implemen tation of these instruments, or other related or 
successor instruments.   TN/RL/GEN/170 
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IV.2 Any subsidy referred to in this Annex sha ll be attributable to the Member conferring it, 
regardless of the flag(s) of the vessel(s) involved or the application of rules of origin to the fish 
involved.  
 
 
Article V  
Fisheries Management13 
V.1 Any Member granting or maintaining an y subsidy as referred to in Article II or 
Article  III.2(b)  Article III.3 or III.4  shall operate a fisheries management system regulating marine 
wild capture fishing within its jurisdiction, desi gned to prevent overfishing.  Such management 
system shall be based on internationally-recogni zed best practices for fisheries management and 
conservation as reflected in the relevant provisions of international instruments , duly ratified by the 
Member country , aimed at ensuring the sustainable use and conservation of marine species, such as, 
inter alia , the Fish Stocks Agreement , the Code of Conduct , the Compliance Agreement , technical 
guidelines and plans of action (including criteri a and precautionary reference points) for the 
implementation of these instruments, or other related or successor instruments.  
 V.2 The
 A fisheries management system  within the meaning of paragraph 1  shall include 
regular  science-based stock assessment, as well as capacity, effort  and catch-based  management 
measures , including harve sting licences or fees ;  vessel registries ;  establishment and allocation of 
fishing rights, or allocation of exclusive quotas to  vessels, individuals and/or groups, and related  
enforcement mechanisms ;  species -specific quotas, seasons and other  stock management measures;  
vessel monitoring which could include electronic tracking  and/or  on-board observers;  systems for 
reporting in a timely and reliable manner to th e competent national authorities and relevant 
international organizations data on effort, catch  and discards in sufficient detail to allow sound 
analysis;  and research and other measures rela ted to conservation and stock maintenance and 
replenishment.  To this end, the Member shall a dopt and implement pertinent domestic legislation and 
administrative or judicial enforcement mechanisms.  It is desirable that such fisheries management 
systems be based on limited access privileges.14 
 V.3 Members shall notify information as to the nature and operation of these systems, including 
the results of the stock assessments performed, shal l be notified to the relevant body of the FAO, 
where it shall be subject to peer review prior to the granting of the subsidy .15  References for such  the 
legislation and mechanism  required under paragraph 2 , including for any modifications thereto, 
shall be notified to the Committee on Subsidi es and Countervailing Measures ("the Committee") 
pursuant to the provisions of Article VI.4.  
 
V.4 V.2  Each Member shall maintain an enquiry po int to answer all reasonable enquiries from other 
Members  and from interested parties in other Members  concerning its fisheries management system, 
including measures in place to address fishing capacity  and fishing effort, and the biological status of 
                                                      
13 Developing country Members shall be free to implement and operate these management 
requirements on a regional rather than a national basis provided that all of the requirements are fulfilled in 
respect of and by each Member in the region.   
14 Limited access privileges could incl ude, as appropriate to a given fishery, community-based rights 
systems, spatial or territorial rights systems, or individual quota systems, including individual transferable 
quotas.   
15 If the Member in question is not a member of the FAO, the notification for peer review shall be to 
another relevant international organization.  The specific information to be notified shall be determined by the 
relevant body of the FAO or such othe r organization.    TN/RL/GEN/170 
Page 8  
 
  the fisheries in question.  Each Member shall no tify to the Committee contact information for this 
enquiry point.   The Committee shall discuss issues related  to fisheries management system 
brought to its attention by any Member in a de dicated session at least on an annual basis. 
 
 
Article VI  
Notifications and Surveillance  
 
VI.1 Each Member shall notify to the Committee  in advance of its implementation  any subsidy 
referred to in Article II or  Article III.3 or III.4 that is  granted or maintained  measure for which 
that Member invokes the provisions of Article II or Article III.2 ;  and except that  any subsidy for 
natural disaster relief16 shall be notified to the Committee without delay .17  Notifications should 
contain,  in addition to the information notified pursuan t to Article 25, any such notification shall 
contain sufficiently precise information to enable ot her Members to evaluate whether or not the 
conditions and criteria in the applicable provisions of Article II or Article III.2 3 or III.4  are met.  
 
VI.2 Each Member that is party to an agreement pursuant to which fishing rights are acquired by a 
Member government ("payer Member") from another Member government to fisheries within the 
jurisdiction of such other Member shall publish that  agreement, and shall notify to the Committee the 
publication references for it.  
 
VI.3 The terms on which a payer Member transfer s fishing rights it has obtained pursuant to an 
agreement as referred to in para graph 2 shall be notified to the Committee by the payer Member in 
respect of each such agreement.  
 VI.4  Each Member shall include in its notif ications to the Committee the references for its 
applicable domestic legislation, as referred to in Ar ticle V.2.and for its notifications made to other 
organizations, as well as for the documents related to the reviews conducted by tho se organizations, as 
referred to in Article V.1.  
 VI.5 Other Members shall have the right to re quest information about the notified subsidies, 
including about individual cases of subsidization, about notified agreements pursuant to which fishing 
rights are acquired, and about the stock asse ssments and management systems notified  to the 
Committee  to other organizations  pursuant to Article V.1  3.  Each Member so requested shall provide 
such information in accordance with the provisions of Article 25.9.  
VI.6 Any Member shall be free to bring to the attention of the Committee information from 
pertinent outside sources (including intergov ernmental organizations with fisheries 
management-related activities, regional fisheries mana gement organizations and similar sources) as to 
any apparent illegal, unreported and unregulated fishing activities.  
 VI.7 Measures notified pursuant to this Article sh all be subject to review by the Committee as 
provided for in Article 26.  
 
 
__________  
 
                                                      
16 As provided for in Article I.1 and footnote 77 . 
17 For the purposes of this provision, "without delay"  shall mean not later than the date of entry into 
force of the programme, or in the case of an  ad hoc subsidy, the date of commitment o f the subsidy.