TN/RL/W/276  
 
11 May 2021  
(21-3987) Page: 1/9 
Negotiating Group on Rules  Original: English  
 
FISHERIES SUBSIDIES  
DRAFT CONSOLIDATED CHAIR  TEXT  
COMMUNICATION FROM THE CHAIR  
The attached document is the new fisheries subsidies draft negotiating text which I announced at 
the 3 May meeting of the Trade Negotiations Committee would be circulated today.  
I present this text on my own responsibility as Chair of the Negotiating Grou p on Rules, having 
listened to and carefully considered Members' comments and views in all of our discussions based 
on the previous consolidated draft documents (RD/TN/RL/126 and Revs. 1 & 2). This new text aims 
at capturing the progress that we have made since RD/TN/RL/126/Rev.2 was issued, and thus much 
of what is in the text is very familiar. The text also suggests compromise outcomes on outstanding 
issues, meaning that it also contains some new language. It goes without saying that this new text 
is with out prejudice to the position of any Member in respect of any issue.  
As you know, the Director -General in her capacity as Chair of the Trade Negotiations Committee has 
invited Ministers to a virtual meeting on fisheries subsidies on 15 July, for the purpos e of considering 
and taking any necessary decisions on the final draft outcome of these negotiations. So we  must 
make very quick progress to close the remaining gaps. I see an arbitrated text containing specific 
proposed compromise language for those gaps as the best way to do so, as it provides a concrete 
basis for the focused further discussion that we need . 
In keeping with our mandate, as expressed in the Ministerial Decision from MC11 (WT/MIN(17)/64) 
which incorporates SDG target 14.6, we are charged wi th creating comprehensive and effective new 
disciplines to address fisheries subsidies that harm sustainability. Coupled with your recurring 
statements in the Negotiating Group and the TNC on the need to deliver a meaningful outcome, to 
me this means an am bitious outcome, and this has been my guiding principle in putting forth the 
compromise language contained in the new text. Where there was a choice to be made, I opted for 
ambition, and I believe that it is incumbent upon all of us to maintain a robust am bition level as we 
finalize the disciplines.  
I thus call  on Heads of Delegation , in the new phase of the negotiations that begins now,  to engage 
intensively on the basis of this text  in a compromise -seeking, convergence -oriented mode . I also 
would  ask you to give these negotiations priority, and to be ready to meet at short notice and in 
different configurations – be it small -group consultations, confessionals, or plenary sessions, 
including with the engagement of the DG as appropriate – as well as bilatera l consultations . I 
appreciate and count on your flexibility, as to substance and process, as we head into this very 
intensive , final,  phase of our work.  
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  TN/RL/W/276  
 
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  Note: This document is without prejudice to any Members' positions or views, whether  or not 
reflected herein.  
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ARTICLE  1: SCOPE  
1.1  This [Instrument] applies to subsidies, within the meaning of Article  1.1 of the SCM  Agreement 
that are specific within the meaning of Article  2 of that Agreement, to marine wild capture fishing 
and fishing related activities at sea.1, 2 
1.2  [Notwithstanding paragraph  1 of this Article, this [Instrument] also applies to fuel subsidies to 
fishing and fishing related activities at sea that are not specific within the meaning of Article  2 of the 
SCM Agreement.]  
ARTICLE  2: DEFINITIONS  
For the purpose of this [Instrument]:  
(a) "fish" means all species of living marine resource s, whether processe d or not ; 
(b) "fishing" means searching for, attracting, locating, catching, taking or harvesting fish 
or any activity which can reasonably be expected to result in the attracting, locating, 
catching, taking or harvesting of fish;  
(c) "fishing related activities" means any operation in support of, or in preparation for, 
fishing, including the landing, packaging, processing, transshipping or transporting of 
fish that have not been previously landed at a port, as well as the provisioning of 
personnel, fue l, gear and other supplies at sea;  
(d) "vessel" means any vessel, ship of another type or boat used for, equipped to be used 
for, or intended to be used for, fishing or fishing related activities ; 
(e) "operator" means the owner of the vessel, or any person on boar d, who is in charge 
of or directs or controls the vessel.  
  
 
1 For greater certainty, aquaculture and inland fisheries  are excluded from the scope  of this 
[Instrument].  
2 For greater certainty, government -to-government payments under fisheries access agreements shall 
not be deemed to be subsidies within the meaning of this [Instrument].  TN/RL/W/276  
 
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  ARTICLE  3: PROHIBITION ON SUBSIDIES TO  
ILLEGAL, UNREPORTED AND UNREGULATED FISHING3 
3.1  No Member shall grant or maintain any subsidy to a vessel [or operator]4 engaged in illegal, 
unreported and unregulated (IUU) fishing.  
3.2  For purposes  of Article  3.1, a vessel  [or operator] shall be considered to be engaged in IUU 
fishing if a n affirmative  determination thereof is made by any of the following5, 6: 
(a) a coastal Member, for activities in waters under its jurisdiction; or  
(b) a flag State Member, for activities by vessels flying its flag; or  
(c) a relevant Regional Fisheries Management Organization or Arrangement (RFMO/A), in 
accordance with the rules and procedure s of the RFMO/A  and relevant international 
law, in areas and for species under its competence . 
3.3 (a) An affirmative  determination7 under Article  3.2 refers to the final finding by a Member 
and/or the final listing by an RFMO/A that a vessel [or operator ] has engaged in IUU 
fishing.  
(b) [The prohibition under Article  3.1 shall apply where the determination under 
Article  3.2(a) is based on positive evidence and follows due process .]  
(c) [For the purpose of subparagraph  (b), the coastal Member shall promptly notify the 
flag State Member and, if known, the subsidizing Member , of the initiation of an IUU 
fishing investigation  [, and shall provide an opportunity to the flag State and 
subsidizi ng Member to submit  information to be taken into account in the 
determination ].] 
3.4  The subsidizing Member may take into account the nature, gravity and repetition  of IUU  fishing 
committed by a vessel [or operator] when setting the duration of application of the prohibition in 
Article  3.1. In any case , the prohibition in Article  3.1 shall apply as long as the sanction8 resulting 
from a determination triggering the prohibi tion remains in force, or as long as the vessel [or 
operator] is listed as engaged in IUU fishing, whichever is the longer.  
3.5  Where a port State Member notifies a subsidizing Member that it has clear grounds to believe 
that a vessel in one of its ports has engaged in IUU fishing, the subsidizing Member shall give due 
regard to the information received and take such actions in respect of its subsidies as it deems 
appropriate.  
3.6  Each Member shall have laws, regulations and/or administrative procedures i n place to ensure 
that subsidies referred to in Article  3.1, including such subsidies existing at the entry into force of 
this [Instrument], are not granted or maintained.  
 
3 "Illegal, unreported and unregulated (IUU) fishing" refers to activities set out in p aragraph  3 of the 
International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing  
adopted by the UN Food and Agriculture Organization (FAO) in 2001[, where applicable, as implemented under 
national fisheries laws an d regulations, or under relevant Regional Fisheries Management Organi zation or 
Arrangement (RFMO/A) management and conservation rules and procedures].  
4 [For the purpose of Article  3, the term "operator" means  the operator  at the time of the IUU fishing 
infraction. For greater certainty, the prohibition on granting or maintaining subsidies to operators engaged in 
IUU fishing applies to subsidies provided to fishing and fishing related activities at sea. ]  
5 Nothing in this Article shall be interpreted to ob ligate Members to initiate IUU fishing investigations or 
make IUU fishing determinations.  
6 This Article shall have no legal implications regarding the competence  under other international 
instruments of any of the listed entities  to make an IUU fishing determination .  
7 Nothing in this Article shall be interpreted to delay, or affect the validity or enforceability of , an IUU 
fishing determination.  
8 Termination of sanctions is as provided for under the laws or procedures of the authority having m ade 
the determination referred to in Article  3.2, including by way of, for example: re -issuance of a suspended 
license; full prosecution of the matter; and delisting, forfeiture, sinking or scrapping of the vessel concerned.   TN/RL/W/276  
 
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  3.7  Each Member shall notify to the [Committee] its laws, regulations and/or administrative 
procedures referred to in Article  3.6. This notification shall be made no later than the entry into force 
of this [Instrument]. Each Member shall promptly notify any subsequent amendments to its relevant 
laws, re gulations and/or administrative procedures.  
3.8  [The prohibition under Article  3.1 shall not apply to  subsidies granted or maintained by 
developing country Members, including least-developed country (LDC) Members, for low income, 
resource -poor or liveliho od fishing or fishing related activities within 12 nautical miles measured 
from the baselines  for a period of [2] years  from the date of entry into force of this [Instrument] .] 
ARTICLE  4: PROHIBITION ON SUBSIDIES CONCERNING OVERFISHED STOCKS  
4.1  No Member shall grant or maintain subsidies for fishing or fishing related activities regarding 
an overfished stock . 
4.2  For the purpose of this Article, a  fish stock is overfished if it is  recognized  as overfished by the 
coastal Member under whose jurisdic tion the fishing is taking place or by a relevant RFMO/A  based 
on best scientific evidence available to it. 
4.3  Notwithstanding Article  4.1, a  Member may grant or maintain subsidies referred to  in Article  4.1 
if such subsidies are implemented to promote the rebuilding of the stock to a biologically sustainable 
level.9  
4.4  [The prohibition under Article  4.1 shall not apply to subsidies granted or maintained by 
developing country Members, including LDC Members, for low income, resource -poor or livelihood 
fishing or fishing related activities within 12 nautical miles measured from the baselines for a perio d 
of [2] years from the date of entry into force of this [Instrument] .] 
ARTICLE  5: PROHIBITION ON SUBSIDIES CONCERNING  
OVERCAPACITY AND OVERFISHING  
5.1  No Member shall grant or maintain subsidies to fishing or fishing related activities that 
contribute to overcapacity or overfishing.  For the purpose of this paragraph, subsidies that contribute 
to overcapacity or overfishing include : 
(a) subsidies to construction, acquisition, modernisation, renovation or upgrading of 
vessels;  
(b) subsidies to the purchase of machines and equipment for vessels (including fishing 
gear and engine, fish -processing machinery, fish -finding technology, refrigerators, or 
machinery for sorting or cleaning fish);  
(c) subsidies to the pur chase/cos ts of fuel, ice, or bait;  
(d) subsidies to costs of personnel, social charges, or insurance;  
(e) income support of vessels or operators or the workers they employ;  
(f) price support  of fish caught ; 
(g) subsidies to at -sea support; and  
(h) subsidies cover ing operating losses of vessels or fishing or fishing related activities.  
 
9 For the purpose of this para graph, a biologically sustainable level is the level determined by a coastal 
Member having jurisdiction over the area where the fishing or fishing related activity is taking place, using 
maximum sustainable yield (MSY), or alternative reference points based on indicators such as  [level of 
depletion, or level of or trend in time series data on catch per unit effort, commensurate with the data 
available for the fishery ]; or by a relevant RFMO/A  in areas and for species under its competence . TN/RL/W/276  
 
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  5.1.1  A subsidy is not inconsistent with Article  5.1 if the subsidizing Member demonstrates 
that measures are implemented to maintain the stock or stocks in the relevant fishery or 
fisheries at a biologically sustainable level.10 
5.2 (a) No Member shall grant or maintain subsidies contingent upon, or tied to , actual or 
anticipated fishing or fishing related activities in areas beyond the subsidizing 
Member's jurisdiction (whether solely or as one of several other conditions), including 
subsidies provided to support at -sea fish -processing operations or faciliti es, such as 
for refrigerator fish cargo vessels, and subsidies to support tankers that refuel fishing 
vessels at sea .11 
 (b) Subparagraph  (a) shall not apply to the non -collection from operators or vessels of 
government -to-government payments under agreeme nts and other arrangements 
with coastal Member s for access to the surplus of the total allowable catch of the living 
resources in waters under their jurisdiction, provided that the requirements under 
Article  5.1.1 are met.  
5.3  No Member shall grant or mai ntain subsidies provided  to fishing or fishing related activities 
outside of the jurisdiction of a coastal Member and outside the competence of a relevant RFMO/A.  
5.4  [No Member shall grant or maintain subsidies for a vessel not flying the flag of the subsidizing 
Member.]  
[ALT 1 
5.5 (a) The prohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
LDC Members for fishing or fishing related activities.  
(b) The prohibition under Article  5.1 shall not apply to subsidies granted or  maintained by 
developing country Members for fishing or fishing related activities within their 
territorial sea.  
(c) The prohibition under Article  5.1 shall apply to subsidies granted or maintained by 
developing country Members , including  LDC Members , for fishing or fishing related 
activities within their EEZ and the area of competence of RFMO/A if all the following 
criteria are met:  
i. the Member 's GNI per capita exceeds US$5,00012 (based on constant 2010 
US dollars) for three consecutive years;  
ii. the Member 's share of the annual global marine capture fish production 
exceeds 2% as per the most recent published FAO data;  
iii. the Member engages in distant water fishing13; and  
iv. the contribution from Agriculture, Forestry and Fishing to the Member 's 
annual national GDP14 is less than 10% for the most recent three consecutive 
years.]  
 
10 For the purpose of this paragraph, a biologically sustainable level is the level determined by a coastal 
Member having jurisdiction over the area where the fishing or fishing related activity is taking plac e, using 
MSY, or alternative reference points based on indicators such as [level of depletion, or level of or trend in time 
series data on catch per unit effort, commensurate with the data available for the fishery]; or by a relevant 
RFMO/A  in areas and fo r species under its competence . 
11 With respect to Article  5.2(a), the mere fact that a subsidy is granted or maintained to vessels or 
operators that may be engaged in fishing or fishing  related activities in areas beyond the subsidizing Member's 
jurisdicti on shall not for that reason alone be considered a prohibited subsidy within the meaning of 
Article  5.2(a).  
12 US$5,000 (based on constant 2010 US dollars) as per published data of the World Bank.  
13 A Member is deemed not to be engaged in distant water fish ing if its operators or vessels normally 
fish in FAO Major Fishing Area(s) that is(are) adjacent to the natural coastline of the flag State.  
14 Based on the latest published data of the World Bank.  TN/RL/W/276  
 
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  [ALT 2 
5.5 (a) The prohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
LDC Members for fishing or fishing related activities.  
(b) The prohibition under Article  5.1 shall not apply to subsidies granted or maintained by 
developing country Members for low income, resource -poor or livelihood fishing or 
fishing related activities wit hin 12 nautical miles measured from the baselines [for a 
period of [ 7] years from the date of entry into force of this [Instrument] ]. 
(c) For subsidies other than those referred to in subparagraph  (b), a developing country 
Member may grant or maintain the subsidies referred to in Article  5.1 for fishing and 
fishing related activities within its EEZ and the area of competence of a relevant 
RFMO/A for a maximum of [5] years after the entry into force of this [Instrument].  
A developing country Member intending  to invoke this provision shall inform the 
[Committee] in writing before the date of entry into force of this [Instrument].  
(d) If a developing country Member whose:  
i. share of the annual global volume marine capture fish production does not 
exceed [0.7%] as per the most recent published FAO data; and  
ii. subsidies to fishing or fishing related activities at sea do not exceed 
US$[25  million] annually  
deems it necessary to apply subsidies referred to in subparagraphs  (b) and (c) beyond 
the [7 or 5] years provided for, respectively, in those subparagraph s, it shall not later  
than one year before the expiry of the applicable period enter into consultation  with the 
[Committee], which will determine whether an extension of this period is justified, after 
examining all the relevant needs of the developing country Member in question. If the 
[Committee] determines that the extension is justified, the developing  country Member 
concerned shall hold annual consultations with the [Committee] to determine the 
necessity of maintaining the subsidies. If no such determination is made by the 
[Committee], the developing country Member shall phase out the remaining subsidi es 
prohibited under Article  5.1 within two years from the end of the last authorized period.]  
ARTICLE  6: [SPECIFIC PROVISIONS FOR LDC MEMBERS ] 
6.1  [Provisions relating to LDC Members shall continue to apply for a transitional period of [X] years 
after the  entry into force of a decision of the UN General Assembly to exclude a Member from the 
"Least Developed Countries " category.]  
6.2  A Member shall exercise due restraint in raising matters involving an LDC Member and solutions 
explored shall take into consideration the specific situation of the LDC Member involved, if any.  
ARTICLE  7: TECHNICAL ASSISTANCE AND CAPACITY BUILDING  
[Developed  country Members, and developing country Members declaring themselves 
in a position to do so, shall provide targeted technical assistance and capacity building 
assistance to developing country Members, including LDC Members  and land -locked 
developing count ry Members , for the purpose  of implementation of the disciplines under this 
[Instrument].]  
  TN/RL/W/276  
 
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  ARTICLE  8: NOTIFICATION AND TRANSPARENCY  
8.1  In order to strengthen and enhance notifications of fisheries subsidies, and to enable more 
effective surveillance of the implementation of fisheries subsidies commitments, each Member shall  
(a) provide the following information as part of its regular notificati on of fisheries subsidies 
under Article  25 of the SCM  Agreement15: 
i. type or kind of fishing activity for which the subsidy is provided;  and 
ii. catch data by species in the fishery for which the subsidy is provided; and 
(b) [to the extent  possible,] provide the fol lowing information as part of its regular 
notification of fisheries subsidies under Article  25 of the SCM  Agreement:  
i. status of the fish stocks in the fishery for which the subsidy is provided (e.g. 
overfished, maximally sustainably fished, or underfished) and whether such 
stocks are shared with any other Member16 or are managed by an RFMO/A;  
ii. conservation and management measures in place for the relevant fish stock;  
iii. name and identification number of the fishing vessel or vessels benefitting 
from the subsidy;  and 
iv. fleet capacity in the fishery for which the subsidy is provided . 
8.2  Each Member shall notify the [Committee ] in writing on an annual basis of : 
(a) any list of vessels and operators that it has determined as having been engag ed in IUU 
fishing ; and  
(b) a list of any fisheries access agreements in force with another government or 
governmental authority , and such notification shall consist of the titles of the 
agreements and a list of their parties.  
8.3  A Member may request additional information from the notifying Member regarding the 
notifications and information provided under paragraphs  1 and 2. The notifying Member shall 
respond to that request as quickly as possible in writing and in a comprehensive manner. If a Member 
considers that a notification or information under paragraphs  1 and 2 has not been provided, the 
Member may bring the matter to the attention of such other Member or to the [Committee ].  
8.4 (a) A Member may only invoke Article  3.8, Article 4.3, Article  4.4, Article  5.1.1, or 
Article  5.5 in respect of subsidies which it has notified to the [Committee] under 
Article  25 of the SCM  Agreement and Article  8.1 of this [Instrument] . 
(b) In addition, a Member may only invoke Article  4.3 or Article  5.1.1 if the Member has 
provided information called for in Articles  8.1(b)(i) and 8.1(b) (ii). 
  
 
15 For the purpose of Article  8.1, Members shall provide this information in addition to all the information 
required under Article  25 of the SCM  Agreement and as stipulated in any questionnaire utilized by the SCM 
Committee, for example G/SCM/6/Rev.1.  
16 The term "shared stocks " refers to stocks that occur with in the exclusive economic zones (EEZ) of two 
or more coastal Members,  or both within the EEZ and in an area beyond and adjacent to it.  TN/RL/W/276  
 
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  ARTICLE  9: [INSTITUTIONAL ARRANGEMENTS]  
[9.1  There is hereby established a [ Committee ] composed of  representatives from each of the 
Members. The Committee shall elect its own Chair and shall meet not less than twice a year and 
otherwise as envisaged by relevant provisions of this [Instrument]  at the request of any Member. 
The Committee shall carry out responsibilities as assigned to it under this [Instrument]  or by the 
Members and it shall afford Members the opportunity of consulting on any matter relating to the 
operation of th is [Instrument]  or the furtherance of its objectives. The WTO Secretariat shall act as 
the secretariat to the Committee.]  
9.2  Each Member shall, within one year of the date of entry into force of this [Instrument], inform 
the [Committee] of measures in existence or take n to ensure the implementation and administration 
of this [Instrument], including the steps taken to implement prohibitions set out in Articles  3, 4 
and 5. Each Member shall also inform the [Committee] of any changes to such measures thereafter. 
The [Commi ttee] shall review annually the implementation and operation of this [Instrument], 
taking into account the objectives thereof.   
9.3  Each Member shall, within one year of the date of entry into force of this [Instrument], provide 
to the [Committee] a  descr iption of its fisheries regime with references to its laws, regulations and 
administrative procedures relevant to this [Instrument], and promptly inform the [Committee ] of 
any modifications thereafter. A Member may meet this obligation by providing to the [Committee] 
an up -to-date electronic link to the Member's or other appropriate official web page that sets out 
this information.  
9.4 The [Committee ] shall examine all information provided pursuant to Article s 3 and 8 and this 
Article  not less than every two years . 
9.5  The [Committee ] shall maintain close contact with the relevant international organizations in 
the field of fisheries management, especially with the Food and Agriculture Organization of the 
United Nations (FAO) and rele vant RFMO/A s. 
9.6  Not later than [X] after the date of entry into force of this [Instrument] and periodically 
thereafter, the [Committee] shall review the operation of this [Instrument] with a view to making 
all necessary modifications to improve the oper ation of this [Instrument] , taking into account the 
objectives thereof.  
ARTICLE  10: DISPUTE SETTLEMENT  
The provisions  of Articles  XXII and XXIII of the GATT  1994 as elaborated  and applied  by the 
Dispute  Settlement  Understanding,  and Article  4 of the Agreement  on Subsidies  and Countervailing  
Measures  shall apply  to consultations,  the settlement  of disputes,  and remedies  under  this 
[Instrument] , except  as otherwise  specifically  provided  herein.  
ARTICLE  11: FINAL PROVISIONS  
11.1  Nothing in this [Instrument] shall be construed or applied in a manner which will affect the 
rights of land -locked country Members under public international law.  
11.2  Members shall  take special care  and exercise due restraint when granting subsidies to fishing 
or fishing related activities regarding stocks the status of which is unknown.  
  TN/RL/W/276  
 
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  11.3  Except as provided in Articles  3 and  4, nothing in this [Instrument] shall prevent a Member 
from granting a subsidy for disa ster relief , provided that the subsidy is:  
(a) limited to the relief of a particular disaster;  
(b) limited to the affected geographic area;  
(c) time-limited;  and 
(d) in the case of reconstruction subsidies, limited to restoring the affected area, the 
affected fishery, and/or the affected fleet up to [a sustainable level of fishing and/or 
fishing capacity as established through a scientific -based assessment of the statu s of 
the fishery and in no case beyond ] its pre -disaster level.  
11.4   (a) This [ Instrument ], including any findings, recommendations, and awards  with respect 
to this [Instrument], shall have no legal implications regarding territorial ity or 
delimitation of maritime jurisdiction . 
 (b) A panel  established pursuant to [ Article  10 of this Instrument ] shall not entertain any 
claim that would require it to address any issues of territoriality or delimitation of 
maritime jurisdiction that is contested by a party o r a third party.  
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