WORLD TRADE  
ORGANIZATION  TN/RL/GEN/162 
8 January 2010 
 (10-0054) 
Negotiating Group on Rules Original:   English 
  
 
TEXTUAL PROPOSAL FOR ADDITIONAL FLEXIBILITIES FOR SMALL AND 
VULNERABLE ECONOMIES UNDER ARTIC LE III OF THE PROPOSED DRAFT 
CHAIR'S TEXT ON FISHERIES SUBSIDIES 
 
Communication from the Small and Vulnerable Economies
 
 
  The following communication, dated 6 January 2010,  is being circulated at the request of the 
Small and Vulnerable Economies.    
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I. INTRODUCTION 
1. The co-sponsors of this proposal are all proponents of the WTO Work Programme on Small 
Economies which has its mandate in Paragra ph 35 of the Doha Ministerial Declaration
1 and 
Paragraph 41 of the Hong Kong Ministerial Mandate.2  The co-sponsors recall WTO document 
TN/RL/W/242 which represents the statement deliver ed by Barbados on behalf of Small and 
Vulnerable Economies (SVEs) under item 15 (c) of the Chair's roadmap for discussions on fisheries 
subsidies (Annex VIII, TN/RL/W/236).    
2. SVEs recall the Hong Kong mandate for fish eries subsidies, which calls on Members to 
"strengthen disciplines on subsidies in the fisheries sector, including  through the prohibition of  certain  
forms of fisheries subsidies that contribute to ove rcapacity and over-fishing ...".  We also recall the 
Chair's roadmap for discussions which calls on the Negotiating Group to "work to identify those 
subsidies that contribute to overcapacity of over-fish ing, with a view to determining which of these 
should and should not be prohibited , while considering at the same time how to effectively address 
the needs and particularities of developing members ".   
 
                                                     
 
1 "We agree to a work programme, under the auspices of the General Council, to examine issues 
relating to the trade of small economies .  The objective of this work is to frame responses to the trade-related 
issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, 
and not to create a sub-category of WTO Members.  The General Council shall review the work programme and 
make recommendations for action to the Fifth Session of the Ministerial Conference."   
2 "We reaffirm our commitment to the Work Prog ramme on Small Economies and urge Members to 
adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the multilateral trading system, without creating a sub-categor y of WTO Members.  We take note of the report of 
the Committee on Trade and Development in Dedicated Session on the Work Programme on Small Economies 
to the General Council and agree to the recommendations on future work.  We instruct the Committee on Trade and Development, under the overall responsibility of the General Council, to continue the work in the Dedicated 
Session and to monitor progress of the small economies' proposals in the negotiating and other bodies, with the 
aim of providing responses to the trade-related issues of small economies as soon as possible but no later than 31 December 2006.  We instruct the General Council to re port on progress and action taken, together with any 
further recommendations as appropriate, to our next Session."   TN/RL/GEN/162 
Page 2  
 
  3. SVEs highlight the following special characteris tics and peculiarities of SVEs, in the fisheries 
context:    
- As per data presented in Annex I of this propo sal, a majority of the SVEs have a share of 
global marine wild capture less than 0.1 per cent.  The magnitude of subsidies typically 
provided by SVEs is small and, at this stag e in their development, many SVEs are not 
even in a position to provide subsidies.  In th is context, it is well- known that SVEs have a 
negligible impact on overcapacity and overfishing.   
- In contrast, several SVEs are characterised by heavy economic dependence on the 
fisheries sector.  Thus, any disciplines would have profound implications for the 
maintenance of basic livelihoods, economic su rvival and sustainable development.   
- SVEs require the necessary policy space to provide subsidies of small magnitudes in the 
future, to be better equipped to harvest thei r own resources, within sustainable limits.   
 4. SVEs reiterate their commitment towards findi ng fair solutions in the debate on fisheries 
subsidies negotiations.  We believe that those Me mbers that have had a history of providing the 
highest magnitude of harmful subsidies should bear the greatest burden in these disciplines.    5. The SVEs have attempted to incorporate their special circumstances in the current 
architecture of the proposed Chair's text
3, as is proposed in Section II below, for the consideration of 
all Members.   
 
II. PROPOSED TEXTUAL REVISIONS TO AR TICLE III.2(B) OF CHAIR'S TEXT, 
ANNEX VIII, TN/RL/W/213 
(b) In addition, subject to the provisions of Article V:   
 
 (1) Subsidies referred to in Articles I.1(d), I. 1(e) and I.1(f) shall not be prohibited.   
  (2) (i)
 Subsidies referred to in Article I.1(a) a nd 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.  OR
 
 
 (ii) Subsidies referred to in Article I.1(a) and Article I.1(c) should not be 
prohibited for those developing count ry Members whose percentage share in 
world NAMA trade is not more than 0.1 per cent and whose percentage share of 
global marine wild capture is not more than 1 per cent.  
 
 (3) For fishing and service vessels of such Members other than the vessels referred to in 
paragraph (b)(2), subsidies referred to in  Article I.1(a) shall not be prohibited 
provided that (i) the vessels are used excl usively for marine wild capture fishing 
activities of such Members in respect of partic ular, identified target stocks within their 
Exclusive Economic Zones ("EEZ");  (ii) t hose stocks have been subject to prior 
scientific status assessment conducted in accordance with relevant international 
standards, aimed at ensuring that the re sulting capacity does not exceed a sustainable 
level;  and (iii) that assessment has been subject  to peer review in the relevant body of 
the United Nations Food and Agriculture Organization ("FAO").4   
                                                      
3 For ease of reference, textual changes proposed by SVEs in this document are in bold and underlined 
form and elements of the Draft Chair's text repli cated here are not presented in underlined form.   
4 If the Member in question is not a member of th e FAO, the peer review shall take place in another 
recognized and comp etent international organization.    TN/RL/GEN/162 
 Page 3 
 
 
  III. TECHNICAL NOTES TO EXPLAIN THE PROPOSED REVISIONS UNDER 
SECTION II 
- Share of world NAMA trade less than 0.1 per cent is a criterion used for the treatment of SVEs 
under Paragraph 13 of the December 2008 NAMA text, TN/MA/W/103/Rev.3 and one of the 
criterion used for the definition of an SVE under Annex I of the  December 2008 Agriculture, 
TN/AG/W/4/Rev.4.  One of the benefits of using this criterion is that it is obtained from texts 
where the definition of an SVE is stabilized in the context of the Doha round of negotiations.   
 - All Members with a share of world NAMA trade less than 0.1 per cent also have a share of 
global fisheries catch less than one percent, as per FAO's average estimates for 2004-2006.  In 
fact, 38 out of the 45 countries in the list in A nnex 1 (inclusive of the 10 landlocked countries) 
have a share of global fisheries catch less than 0.1 per cent each.   
 
IV. CONCLUDING REMARKS 
 The SVEs have accepted all forms of other disci plines on fisheries subsidies proposed in the 
Draft Chair's Text, including through enhanced tran sparency disciplines, an  actionability clause and 
even through the concept of the proposed Article I.2.  In addi tion, the SVEs have accepted the 
principle of conditioning Special and Differential Tr eatment exemptions on a core set of fisheries-
management related criterion easily enforceable in  developing countries.  This proposal only seeks for 
some additional flexibility for SVEs with respect to the proposed exemptions to the prohibited 
subsidies under Article I.   
 
 TN/RL/GEN/162 
Page 4  
 
  Annex 1
 
 
List of SVEs with Share of World NAMA Trade of less than 0.1% and whose  
percentage share of global marine wild capture is not more than 1 %  
 
 
Non-LDC WTO Developing 
Country Members with Share of 
World NAMA trade less than 0.1% 
(See Note 1 below) Share of World NAMA 
trade (Average of 
period 1999-2004) Share of global total catch 
(marine wild capture fishing 
only), Average of period 
2004 – 2006)  
(See Note 2 below) 
Antigua and Barbuda  0.004 0.003 
Barbados  0.011 0.003 
Belize  0.004 0.005 
 Bolivia (landlocked) 0.028 n/a 
Cuba  0.052 0.034 
Dominica  0.001 0.001 
Dominican Rep. 0.063 0.013 
Ecuador  0.098 0.474 
El Salvador  0.044 0.048 
Fiji  0.012 0.050 
Grenada  0.002 0.002 
Guatemala  0.072 0.015 
Guyana  0.008 0.064 
Honduras  0.032 0.018 
Jamaica  0.040 0.015 
Jordan  0.071 0.000 
Kenya  0.041 0.009 
Mauritius  0.034 0.011 
 Mongolia (landlocked) 0.012 n/a 
Nicaragua  0.018 0.032 
Panama  0.035 0.258 
Papua New Guinea  0.030 0.307 
 Paraguay (landlocked) 0.023 n/a 
Saint Kitts and Nevis  0.002 0.001 
Saint Lucia  0.003 0.002 
Saint Vincent and the Grenadines  0.002 0.007 
Trinidad and Tobago  0.088 0.013 
Uruguay  0.037 0.149 
 
(1) Data compiled from WTO document TN/MA/ S/18, as referenced in Paragraph 13 of 
TN/MA/W/103/Rev.3, 8 December 2008.  The above list is also contained in Annex I, TN/AG/W/4/Rev.4, 
8 December 2008. 
(2) Statistics relating to global fisheries catch for the average period 2004-2006 have been directly 
obtained from the FAO upon the request of the SVEs.  Statistics in relation to share of global fisheries 
capture for the 10 Memb ers referenced as "landlocked" was no t available primarily due to these 
Members being landlocked countries, with li ttle marine wild capture fishing activity. 
 
  
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