WORLD TRADE  
ORGANIZATION  TN/RL/GEN/150/Rev.1 
10 September 2007 
 (07-3766) 
Negotiating Group on Rules Original:   English 
  
FISHERIES SUBSIDIES:  PROPOSED NEW DISCIPLINES 
 
Revised Proposal from the Republic of Indonesia
 
 
Revision  
 
 
 The following communication, dated 5 September 2007, is being circulated at the request of the Delegation of the Republic of Indonesia.    
_______________ 
 
 
INTRODUCTION 
1. Indonesia has taken into account the views expr essed in the Group to date, including papers 
submitted by Argentina and Brazil to the Group at its  last session and discussion of the many issues 
raised there.  In light of this discussion and what  Indonesia sees as convergence of the direction of the 
Group on several issues, Indonesia has undertaken to revise the text it submitted in July to reflect 
these views, and to clarify several areas of its text that gave rise to certain questions.   
 2. The delegation of Indonesia is hopeful that its  revised text will provide a basis for further 
discussion and convergence of views around the important issues involved in this negotiation.  The 
revisions focus primarily on five areas of the text.  We also submit a version of the Revised Proposal 
which shows all changes made from the July 2, 2007 Proposal.    3. First, in this revision to the draft Proposal Indonesia seeks an approach that brings together 
the "top down" and "bottom up" approaches  to classifying fishery su bsidies.  Whereas the 
July Proposal broadly defined fishery subsidies as "prohibited" in Article 2, and then proceeded in 
Article 3 and Article 4 (exemptions and special-and -differential treatment, respectively) to make 
certain subsidies allowable, the Revised Proposal br oadly defines fishery subsidies as "actionable", 
with Article 3 and 4 defining subsidies that are, w ith conditionality, non-actio nable.  The reasons for 
this change are explained below.    
4. In studying the ASCM and the draft proposals for fisheries subsidy disciplines, we found that 
the word "prohibited" was being used differently  in the ASCM and in the fisheries subsidies 
discussions, and we think it is conf using and unwise to have different meanings for the same word.  In 
the ASCM, the term "prohibited" is applied only to  export subsidies or impor t substitution subsidies, 
and the term is not used – as it was being used ofte n in our fisheries negotiations – as a generic term 
for a subsidy that is subject to disciplines.  Thus , Annex Article 2 was redraf ted to make clear that 
Article 2 fisheries subsidies, unless named as excepti ons in Articles 3 or 4 of this Agreement, are 
"actionable" under existing ASCM multilateral dis pute settlement proceedings or domestic-track 
countervailing duty proceeding if the subsidized fi shery activity caused adverse effects as currently 
defined by the ASCM or as defined in this Annex as an adverse effect on the fishery resource 
(Article 6) .  Moreover, by implication of the wording of  Annex Article 2, the Fisheries Annex would 
not prohibit subsidies that were not already defi ned as "prohibited" under the existing ASCM.   TN/RL/GEN/150/Rev.1 
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  5. Accordingly, the Revised Proposal does not prohibit any subsidies not otherwise prohibited 
by the ASCM.  The Revised Proposal can still be considered "top down", however, because it first 
deems all subsidies as (potentially) actionable, a nd then carves-out exemptions or S&D treatment in 
Articles 3 and 4.  Indonesia notes that the Revised  Proposal represents a significant strengthening of 
disciplines for fishery subsidies over that of th e existing ASCM because of the introduction of the 
concept of "adverse effect on a fishery resource" as an alternative, additional condition for applying 
subsidy remedies, including countervailing duties when there is "injury" to a fishery resource.    6. Second, the Revised Proposal makes some cha nges/clarifications in special and differential 
(S&D) treatment  (Annex Article 4) and, in particular, th e conditionality for artisanal and small-scale 
fisheries.  The Revised Proposal represents a clar ification, rather than a significant substantive 
change, from the July Proposal.  New Zealand has usefully labelled Indonesia's approach to S&D 
treatment as a "cascade approach".  Thus the cascade approach containe d the text of Annex Article 4, 
which explains the differences in the three categor ies about which certain Members raised questions, 
can be summarized in the following table:   
 
S&D Treatment Cascade – Article 4 
 
Type of Fishing Location Vessels Conditionality 
Artisanal Territorial waters and 
mostly close to shore Proportional ratio 
between gross 
tonnage and engine 
power and utilize primarily manual gear Full support for 
subsistence fisheries 
allowed 
Small Scale • Within 12 
nautical miles;  or 
• The Member's 
own archipelagic 
waters Below 20 meters 
dimension • Limited to fishing 
vessel construction, repair, or 
modernization, or 
gear acquisition or improvement, 
or fuel 
• Contingent on 
Art. 4.5 factors 
All Vessels • Within Member's 
own EEZ;  or  
• High seas fishing 
quota or RFMO;  or  
• Regional fisheries 
management arrangement Not applicable • Limited to fishing 
vessel 
construction, 
repair, or 
modernization, or 
gear acquisition or improvement, 
or fuel 
• Contingent on 
Art. 4.6 factors 
  7. Third, an area of significant revision is that of Annex Article 6, adverse effects
.  Indonesia has 
clarified the language of this Article and made its  structure parallel to that of the corresponding 
structure of the existing ASCM text on adverse effects (ASCM Article 5), serious prejudice (ASCM 
Article 6), and injury (ASCM Article 15).  We be lieve that the changes will make the application 
clearer, and by having the ASCM and the Annex consistent in their approach, it will make enforcement and interpretation easier.  In short, the Revised Proposal makes clear that, with the  TN/RL/GEN/150/Rev.1 
 Page 3 
 
 
  exception of subsidies meeting the exceptions (Artic le 3) or S&D treatment (Article 4), fishery 
subsidies remain actionable if they cause adverse effects as under the existing ASCM (Article 5) 
and/or if they trigger the adverse effects to fisher y resources outlined in Fisheries Annex Article 6.  
We have also clarified where a remedy would appl y.  For the multilateral track (parallel to ASCM 
Part III dispute settlement), the adverse effect to th e fishery resource can occur in any market in which 
a Member's interests are shown to be adversely affected.  For the domestic countervailing duty track 
(ASCM Part V), there must be injury to the fish ery resource within the Me mber's exclusive economic 
zone (EEZ) or archipelagic waters.    8. Fourth, the Revised Proposal addresses technical assistance
 to developing country Members.  
In response to comments by a number of other Memb ers, Indonesia has clarified the Proposal that the 
technical assistance to developing country Members should be on mutually agreed terms and conditions.    9. Fifth, the Revised proposal addresses the role of fishery expertise
 in the implementation of the 
new Annex, particularly in assessing conditionality of  under Article 3 and Article 4 (exceptions and 
S&D treatment) and in determining adverse effect s to the fishery resource.  The July Proposal 
suggested establishing new bodies and vesting them with certain powers based on their expertise;  the Revised Proposal recognizes the issues by other Members, such as the lessons learned from the 
history of reliance on the Permanent Group of Ex perts under the existing ASCM process, and has 
redrafted the text to allow for further explorati on of this issue among the negotiating Members.   
 
10. Finally, Indonesia appreciates the written qu estions and comments which is has received.  It 
has replied to the Members in relation to tho se Members' particular comments and questions 
regarding the July Proposal.  In many cases, Indon esia believes that the revisions and clarifications 
incorporated in the Revised Proposal provid e the best response to these submissions.   
 TN/RL/GEN/150/Rev.1 
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  Attachment 
 
ANNEX [VIII] TO THE AGREEMENT ON SUBSIDIES AND  
COUNTERVAILING MEASURES 
 
Preamble 
Members, 
Recalling  the commitment at Doha to clarify and im prove WTO disciplines on fishery subsidies.   
Noting  the current state of world fishery stocks and the desire of Members to address subsidies that 
have a harmful effect on them;   
Conscious  of the negative effects of overcapacity and overfishing on these 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 in relation to fisheries;   
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 Subsidies and Countervailing Measures (ASCM).   
1.2 A subsidy as used in this Annex is a subsidy wi thin the meaning of paragraph 1 of Article 1 of 
the Agreement on Subsidies and Countervailing Measure s (ASCM).  A subsidy subject to this Annex 
must be specific, pursuant to Article 2 of the ASCM.   
1.3 This Annex shall not apply to inland fisheries
1 or to aquaculture.2   
1.4 This Annex covers any subsidy that confers a benefit to or on behalf of any company and/or 
person linked in fact or in law, directly or indirectly3, to enterprises engaged in the harvesting of 
marine wild capture fisheries.  Fisheries subsidi es shall encompass any subsidy programme and/or the 
disbursement made under such programme.   
                                                      
1 "Inland fisheries" are fisheries which are carried  out in freshwater or estuaries of a Member and 
whose target species are those that spen d all of their life-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.    TN/RL/GEN/150/Rev.1 
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  1.5 Harvesting includes the on-vessel processing of fish and transport of fish from one vessel to 
another or from a vessel to shore, but it does not  include inland or on-shore processing or other post-
harvest handling or activity.   
1.6 This Annex does not cover government-to- government payments to obtain access for a 
Member's distant water fishing fleet to fisheri es resources within the territorial sea or exclusive 
economic zone of a developing country, or to  quotas or other rights established by any regional 
fishery management organization (RFMO) or arrangeme nt.  The further transfer of such rights to the 
Member's fishing fleet is covered by this Annex but is not actionable under Article 2, provided that:   
(a) a benefit is not conferred by the onward transfer of such rights to the Member's 
fishing fleet, in that the Member's fleet pa ys compensation comparable to the value of 
the access of the resource;   
(b) the access arrangements provide for compliance with applicable fishery management 
plans and for a science-based assessment and monitoring of the status of the fishery 
resources covered by the access arrangements;  and 
(c) such payments are notified pursuant to Article 5 herein.   
Article 2 
Fishery Subsidies Actionable  
 No Member shall cause, through the use of any fishery subsidy included in paragraphs 1 
and 2 of ASCM Article 1, adverse effects to the interests of other Members as defined in ASCM 
Article 5 or adverse effects to fishery resources as de fined in paragraph 6.1 to  this Annex, except as 
otherwise provided in this Annex.   
Article 3 
Exceptions to Actionable Subsidies 
3.1 Notwithstanding Article 2, the following subsidies are not actionable:   
(a) Provision of a social safety net for fisher men, including early retirement schemes, re-
education, training or alternative employment assistance, unemployment relief, life 
insurance, support for the temporary suspension of fishing activities.   
(b) Fisheries research, including data collection, surveys, data analysis, and stock 
monitoring, sampling and assessment;4   
(c) Fisheries stock enhancement, including ma rine conservation and protection, marine 
environment restoration, protection and deve lopment of a Member's own archipelagic 
waters5, artificial reefs, hatcheries for breeding and by-catch mitigation devices6;   
(d) Improving vessel and crew safety7, provided that the improvement is undertaken to 
comply with international or domestic standards;  and there is no increase in fishing 
                                                      
4 This is limited to fisheries research that does not result in commercial sale of  the fish harvested.   
5 Archipelago is as defined in Article 46 of UNCLOS 1982, and calculati on of the archipelagic 
baselines is defined in Article 47 thereof.   
6 This provision is aimed at measures that enhance marine resources rather than capacity to harvest 
those resources.   
7 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/150/Rev.1 
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  capacity
8, such as the volume of fish hold or en gine power of a vessel subject to such 
program.   
(e) Construction and maintenance of general infr astructure for fishing activities, such as 
wharves and fishing ports and related fac ilities, roadways, water and sanitary waste 
systems, the provision of housing  and other forms of community development 
infrastructure.9   
(f) Short-term emergency relief, recovery adjustment programs and replacement of 
fishing capacity following natural or envir onmental disasters, provided that fishing 
fleet capacity is not restored beyond its pre-disaster state10, except that special 
flexibility shall be given to developing  countries pursuant to Article 4.   
(g) Assistance and user-specific allocations to individuals and groups under limited 
access privileges and other exclusive quota pr ograms, and other expenses related to 
administration and operation of fishery ma nagement programs, including allocation 
and monitoring of licences, permits, quotas, vessel numbers and catch returns.   
(h) Vessel decommissioning 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;11   
(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 
(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;   
(iv) there are in place fisheries management  plan designed to prevent over-fishing 
in the targeted fishery, such as lim ited entry systems, catch quotas, limits on 
fishing effort or allocation of exclus ive quotas to vessels, individuals and/or 
groups, provided that special flexib ility should be given to developing 
countries, including any technical assistance requested  by any such 
developing country as provided in Article 4 below.   
                                                      
8 Fishing capacity is understood here to mean the ability  of a vessel or fleet of vessels to catch fish.   
9 General infrastructure for fishing communities shall also not be considered to be regionally specific 
under the ASCM.   
10 Restoration to pre-disaster state is not intended to restore a pre-disaster state of over-capacity.   
11 Vessels decommissioned for legitimate research and training purposes, with no commercial 
functions, need not comply with the conditions of this exception.    TN/RL/GEN/150/Rev.1 
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  Article 4 
Special and Differential Treatment of Developing Country Members 
4.1 Notwithstanding the provisions of the ASCM  and Articles 2 and 3, a developing country 
Member shall be allowed to grant or maintain fish eries subsidies to its artisanal fisheries activities12, 
defined herein as those which:   
(a) Operate within its territorial waters and mostly close to shore;   
(b) Use vessels of [proportional ratio between  gross tonnage and engine power] and 
which utilize primarily manual gear;  and 
(c) Are operated by individual fishermen or family members for the purpose of 
subsistence or local trade.   
Such subsidies are not actionable.   
4.2 Notwithstanding the provisions of the ASCM  and Articles 2 and 3, a developing country 
Member shall be allowed to grant or maintain subs idies to its small-scale fisheries for the purpose of 
fishing vessel construction, repair, or modernization, or gear acquisition or improvement, or fuel.  For 
the purposes of this section, small-scale fish eries shall be defined as those that:   
(a) Are below 20 meters dimension;  and 
(b) Operate within the Member's 12 nautical mile limit or the Member's own archipelagic 
waters.   
Such subsidies are not actionable.   
4.3 Notwithstanding the provisions of Articles 2 and 3, a developing country Member shall be 
allowed to grant or maintain subsidies for the purpose of fishing vessel construction, repair, or 
modernization, or gear acquisition or improvement, or fuel, provided th at the purpose is to exploit:   
(a) fisheries in the Member's own Exclusive Economic Zone;  or 
(b) rights held by the Member in high seas fishing quotas or any other rights established 
by a regional fisheries management orga nization (RFMO) or a regional fisheries 
management arrangement.   
Such subsidies are not actionable.   
4.4 Upon the request of developing country Memb ers, and with reference to guidance provided 
by the UN [Fish Stocks Agreement], developed country Members shall provide technical assistance 
on mutually agreed terms and conditio ns to developing country Member s to allow them to participate 
fully in any RFMO adjacent to their exclusiv e economic zone or archipelagic waters.   
4.5 Fishing subsidies meet the definition of pa ragraph 4.2 contingent on a showing that:   
(a) The Member has a fishery management plan  in place that is effectively monitored and 
adequately enforced;   
                                                      
12 Artisanal fisheries activities shall include on-board handling (including but not limited to provision 
of cool boxes, fish holds and other measures to enco urage hygiene and sanitation and to preserve fish quality) 
and post-harvest handling.   TN/RL/GEN/150/Rev.1 
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  (b) The fishery does not adversely affect re sources governed by the fishery management 
plan;  and 
(c) The small-scale fishing activities will not adversely affect fishery resources of other 
Members or the resources governed by relevant RFMO's.   
4.6 Fishing subsidies meet the definition of pa ragraph 4.3 contingent on a showing that the 
developing country Member has:   
(a) underexploited resources in its EEZ;  or 
(b) a right to high seas fishing quotas or extra quota in a RFMO. 
4.7 Upon the request of developing country Memb ers, developed country Members shall provide 
technical assistance to developing country Member s on mutually agreed terms and conditions to 
develop the capacity to initiate, implement and enfo rce compliance with a fishery management plan in 
keeping with the FAO Code of Conduct on Respons ible Fisheries and adequate to provide the 
showing required by Sections 4.3, 4.4 and 4.5 herein.   
Article 5 
Notifications and Enquiry Points 
5.1 A Member asserting that a subsidy covered by  this Annex qualifies for an exception pursuant 
to Sections 3 and 4, with the exception of artisanal  fisheries under Section 4.1, shall include in its 
annual notification, mutatis mutandis,  under Article 25 of the ASCM, information fully describing the 
fisheries benefiting from the subsidy and describing how the subsidy conforms to the conditions set 
forth in the exception.  Information shall include, where relevant, measures to address fishing capacity 
and effort, the biological status of manage d stocks and other fishery resources.   
5.2 The Committee on the ASCM will annually review  such notifications and report to Members 
on the extent to which Members are availing th emselves of such exceptions.  Reports will be 
published annually in a form available to the public.   
5.3 In reviewing notifications, the Committee is en couraged to consult with and seek information 
from fishery experts, as authorized by Article 24.5 of the ASCM.   
5.4 Each Member shall maintain an enquiry poi nt to answer all reasonable enquiries from other 
Members and interested parties in other Members concerning its fisheries management plan, including 
measures in place to address fishing capacity and fishin g effort and the biological status of managed 
stocks.  Special flexibility shall be given to develo ping countries with respect to instituting enquiry 
points, including flexibility to de velop such enquiry points with th e help of technical assistance.  
Upon the request of developing country Member s, developed country Members shall provide 
technical assistance to develop the capacity to initiate  and implement compliance with this Section.    TN/RL/GEN/150/Rev.1 
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  Article 6 
 
Adverse Effects 
 
6.1 For purposes of ASCM Part III, no Member should cause, through the use of any fishery 
subsidy referred to in Article 2 of this An nex, adverse effects to a fishery resource,13 i.e.:   
 
(a) injury to the fishery resource of another Member;14   
 
(b) nullification or impairment of benefits  accruing directly or indirectly to other 
Members under GATT 1994, in particular the benefits of concessions bound under 
Article II of GATT 1994, as a result of an effect on a fishery resource;   
  (c) serious prejudice to a fishery resource of another Member.    
6.2. Injury to a fishery resource in the sense of pa ragraph (a) of Article 6.1 of this Annex shall be 
based on positive evidence and involve an objective ex amination of the volume of the fishery activity 
and the effect of the fishery activity on the fishery resource.
15   
 6.3. The examination of the injury  from fishery activity shall include an evaluation of all relevant 
fishery resource factors, including:   
 
(a) the total catch (in volume terms) by the Member of target species and by-catch, with 
breakdown by fishery, and the number of vessels used in those catching operations, 
with breakdown by operated location areas;   
 
(b) the criteria and scientific information used  to set the status of the fishery;   
 
(c) whether the fishery in question is under 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;   
 
(d) national fisheries management plans in pl ace, with sufficient information to enable 
Members to evaluate and to understa nd their framework and operation;  and 
 
(e) government-to-government payment for access  by foreign vessels to fishing resources 
of a developing country's maritime jurisdiction 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) a nd other relevant information.   
 
(f) information on the biological status of relevant marine ecosystems.   
                                                     
 
13 Nothing in the concept of adverse effects to a fishery resource shall prejudice the ability of a panel to 
find adverse effects as otherwise defined in Article 5 of the ASCM for products covered by Article 2 of this Annex.  An adverse effect to the fishery resource is  an alternative additional means of meeting the ASCM 
adverse effects standard.   
 
14 The term "injury to the fisheries resource" ha s the same meaning in ASCM Part III and ASCM 
Part V, except as specified by paragraph 6.8 of this Annex.   
 15 This provison parallels ASCM Article 15.1.   TN/RL/GEN/150/Rev.1 
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   This list is not exhaustive, nor can one or several of these factors necessarily give decisive 
guidance.
16   
 6.4 Where fishery activities of more than one count ry are simultaneously subject to a proceeding, 
the effects of such activities shall be cumulate d only if they determine that the amount of 
subsidization established in relation to the imports from each country is more than de minimis as 
defined in  paragraph 9 of ASCM Article 11 a nd the fishery activity of each country is not 
negligible.
17   
 6.5 It must be demonstrated that the fishery ac tivity is, through the effects of subsidies, causing 
injury within the meaning of this section.  The demonstration of a causal relationship between the 
fishery activity and injury to the fishery resource shall be based on an examination of all relevant 
evidence before the authorities.  The authorities sha ll also examine any known factors other than the 
subsidized fishery activity which at the same time are injuring the fishery resource, and the injuries 
caused by these other factors must not be attr ibuted to the subsidized fishery activity.
18   
 
6.6 The effect of the subsidized fishery activit y for a particular product covered by this Annex 
shall be assessed in relation to any fi sheries resource covered by this Annex.19   
 
6.7 Serious prejudice to a fishery resource in the sense of paragraph (c) of Article 6.1 of this 
Annex shall be presumed to arise when:   
 
(a) there is an increase in the subsidizing Me mber's capacity to produce the product due 
to the subsidy;  or 
  (b) an increase in the subsidizing Member 's relative share of production of the like 
product, as compared to non-subsidized production, over a representative period 
sufficient to demonstrate clear trends in production.   
 6.8 For purposes of a countervailing duty proceeding under ASCM Part V, injury shall include the provisions of section 6.2 through 6.6 of  this Annex, except that the fi shery resource examined shall be 
exclusively within the Exclusive Economic Zone or archipelagic waters of the Member investigating 
injury to its fisheries resource.  Injury for the purposes of a countervailing duty proceeding under 
ASCM Part V may also be determined according to the standards of Article 15 ASCM, even if it is a 
fishery subsidy covered by this Annex.
20   
                                                      
16 This provision parallels ASCM Article 15.4, using the factors contained in Indoensia's July 2, 2007 
Proposal.   
 17 This provision parallels ASCM Article 15.3 on the is sue of multiple countries being investigated in a 
countervailing duty proceeding.    
18 This provision parallels ASCM Article 15.5 on the need for proof of causation.   
 19 This provision parallels ASCM Article 15.6 on "like product".  However, for purposes of the adverse 
effects to fisheries resource test, the "like product" determ ination would not be the same as in a standard injury 
test that measures trade effects to a like product.  For example, a fishing activity for bluefin tuna that "injures" 
the dolphin resource of another Member could be covered by these provisions, despite the fact that the bluefin 
tuna fishing might not be "injuring" the bluefin tuna catch.    
20 Nothing in the concept of adverse effects to fisher ies resources or injury to  a fishery resources shall 
prejudice the ability of a panel or investigating authority to find adverse effects or injury as otherwise defined in 
Article 5 and Part V of the ASCM.  An adverse effect to fisheries resources or  injury to a fisheries resource is an 
alternative additional means of meeting the traditional adverse effects or injury standard of Part III and Part V of 
the ASCM.    TN/RL/GEN/150/Rev.1 
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  Article 7 
Prevention of circumvention 
 Members shall not have recourse to rules of or igin (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 8 
Review 
The provisions of this Annex shall be reviewed  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 9 
Transitional provisions 
9.1 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 shall be notified to the Committee in no later than 90 days 
after that date.   
9.2 From the entry into force of this Annex, th ere shall be a period of three years for developed 
country Members and a period of five years for de veloping country Members to gradually phase out 
and eliminate fisheries subsidies that are inconsistent  with the provisions of this Annex.  The starting 
point of the reduction shall be the 2003-2005 average of the fisheries subsidies 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.   
9.3 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 nec essary to apply such subsidies beyond the 8-year 
period, it shall not later than one year before the e xpiry of this period enter into consultation with the 
Committee, which will determine whether an extension of this period is justified, after examining all 
the relevant economic, financial a nd development needs of the Member  in question.  If the Committee 
determines that the extension is justified, the Me mber concerned shall hold a nnual consultations with 
the Committee to determine the neces sity of maintaining the subsidies.  If no such 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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