WORLD TRADE  
ORGANIZATION  TN/RL/GEN/172 
19 January 2011 
 
 (11-0320) 
Negotiating Group on Rules Original:   Spanish 
  
 
PROPOSAL ON FISHERIES SUBSIDIES 
SPECIAL AND DIFFERENTIAL TREATMENT 
ARTISANAL FISHERIES - ARTICLE III.2(A) 
 
Communication from Ecuador and Peru
 
 
  The following communication, dated 17 January 2011, is being circulated at the request of the delegations of Ecuador and Peru.  
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I. INTRODUCTION 
 The aim of this paper is to present a propo sed text on disciplines for artisanal fisheries 
subsidies within the framework of the exceptions that  form part of special and differential treatment 
for developing countries in the WTO D oha Development Agenda negotiations. 
  This proposal is consistent with the manda te of the Hong Kong Ministerial Declaration, 
which asked Members to " strengthen disciplines on subsidies in the fisheries sector, including 
through the prohibition of certain forms of fisheri es subsidies that contribute to overcapacity and 
over-fishing ", while providing that " appropriate and effective special and differential treatment for 
developing and least-developed Members should be an  integral part of the fisheries subsidies 
negotiations, taking into account the importance of  this sector to development priorities, poverty 
reduction, and livelihood and food security concerns ". 
  As the sponsors of this communication, we reaffirm our commitment to the full 
implementation of this mandate, in cluding appropriate and effective sp ecial and differential treatment 
for developing countries;  accordingly, we propo se that the disciplines in question allow for the 
development of sustainable artisanal fisheries.   Although an internationally recognized defin ition of artisanal fishing does not exist, the 
activity is undoubtedly of major importance to the deve loping countries in general, as demonstrated in 
the recently published United Nations Environmen t Programme (UNEP) report entitled "Fisheries 
Subsidies, Sustainable Development and the WTO", wh ich states that this type of fishing provides 
direct and indirect employment for tens of millions of people and accounts for 90 per cent of all fishing jobs worldwide, even though it represents barely a quarter of the world catch.
1  It also provides 
a source of protein-rich food for hundreds of millions  of people across the globe.  Artisanal fishing 
concerns mainly small, underdeveloped and ofte n severely impoverished fishing communities, the 
survival of which depends on their ability to continue a type of fishing activity that they have, in some 
cases, been practising for centuries. 
                                                      
1 United Nations Environment Programme (UNEP):  Fisheries Subsidies, Sustainable Development 
and the WTO;  The Special Case of Artisanal Fisheries , English edition, 2010. TN/RL/GEN/172 
Page 2  
 
   
 In the case of the countries sponsoring this pa per, artisanal fishing represents an important 
source of livelihood, employment and food security for their populations.  We therefore seek to 
promote the sustainable development of artisanal  fisheries through various measures such as the 
provision and maintenance of basic infrastructure, th e improvement of fishing vessels, and training for 
fishermen, as well as through programmes aimed at e nhancing the management of such fisheries. 
  In the current negotiations, Members have fre quently expressed an interest in including 
artisanal fisheries under special and differential treatment.
2  However, in the Chair's text 
(document TN/RL/W/213 of 30 November 2007), the exemption under paragraph 2(a) of Article III 
on special and differential treatment refers only to subsistence fishing and would not therefore cover 
the artisanal fishing that predominates in the majority  of developing countries, i.e. fishing activity that 
seeks not only to meet the basic food requirements of fishermen, but also to reduce poverty and 
ensure the development of lo cal communities through trade. 
 
 According to the UNEP report3, highly mechanized industrialized fleets bear the main 
responsibility for the crisis in many of the world's ma jor fisheries, so the focus of the ban on subsidies 
should be on that type of fishery.   Considering the contribution of sustainable arti sanal fishing to food security, the development 
of local communities and poverty reduction, it should  be granted flexible tr eatment, in accordance 
with the negotiating mandate.  Nonetheless, in some situations subsidies to artisanal fisheries could 
have undesirable effects, such as the depletion of  the fisheries' own resources.  Therefore the 
flexibility proposed should go hand in hand with cr iteria and conditions defining the scope of the 
subsidies and ensuring that they are sustainable and have no or no more than a minimal impact on trade. 
 
 In brief, the text below contains a proposed  amendment to Article III.2(a) of the text 
submitted by the Chair of the Negotiating Group on Ru les in 2007.  This proposal does not prejudge 
the sponsors' position regarding the other Articles in the Chair's text, but does reflect their agreement 
with, and continued support for, the structure of  that text as a basis for the negotiation of new 
disciplines on fisheries subsidies, namely a broad ba n on subsidies that contribute to overcapacity and 
over-fishing, with limited general and specific exceptions subject to fisheries management 
requirements which ensure the sust ainability of marine resources. 
  The sponsors reserve their right to modify this proposal.  II. EXPLANATION OF THE LEGAL TEXT 
Introduction.- In order to define the scope of this pr oposal relating to special and differential 
treatment, explicit reference is made to the obj ectives of "food security", "development of local 
communities" and "poverty reduction", these being th e elements of the Hong Kong mandate most 
closely linked to artisanal fisheries.  
                                                     
 
2 India (document TN/RL/W/203 of 6 March 2006), "Friends of Fish" group (document TN/RL/W/243 
of 7 October 2009), Brazil, China, Ecuador, Mexico and Venezuela (document TN/RL/W/241/Rev.1 of 1 October 2009), Brazil, China, India and Mexico (TN/RL/GEN/163 of 11 February 2010). 
3 UNEP, op. cit ., pages 213 and 215.  TN/RL/GEN/172 
 Page 3 
 
 
  Geographical scope .- We propose that the geographical area in which artisanal fishing activity is 
practised be defined as the " waters under the national jurisdiction of the Member States ". 
  Artisanal fishing activity, which was traditi onally limited to the maritime areas or zones 
closest to the shores of coastal States, has now exte nded to other maritime areas.  This proposal seeks 
to reflect the reality of many marine wild capture  fisheries, where artisanal fishermen venture beyond 
coastal waters and into the jurisdictional waters  of the Member, in the search for the resource. 
 Conditions.- The following cumulative conditions are proposed:  
 
 (1) In order to reflect the reality of the ar tisanal fisheries sector, we have kept the term 
"associations" and have added "micro-ent erprises", meaning a form of business 
organization with a limited number of work ers, and "other forms of small producer 
organizations", which would cover no n-traditional types of organization. 
 
 (2) Together with the "small-scale trade" cr iterion in the Chair's text, we propose that 
artisanal fishery products be " mainly destined for direct human consumption ", taking 
into account the Hong Kong Ministerial mandate regarding food security.  Fishery products for direct human consumption s hould be understood to mean those intended 
for direct feeding of the population, as opposed to those used to manufacture fishmeal and oil.
4 
 
 (3) While recognizing that there is no uniform criterion for the size of artisanal vessels 
and that the inclusion of this physical a nd static parameter could be arbitrary, we 
consider it necessary to establish an objectiv e criterion that fishermen and authorities 
would find easy to apply and monitor.  A size that might be considered for vessels is 
"15 metres in length ". 
  (4) With regard to fishing equipment and operations, we propose that operations be 
"carried out using simple fishing gear, tools and techniques and involve 
predominantly manual labour ", as such criteria objectively define the nature of 
artisanal fishing operations. 
 
 (5) Lastly, and in view of the priority given by the proponents to the sustainable 
development of these fisheries, it is propo sed that destructive fishing practices be 
banned in accordance with the Code of Conduct for Responsible Fisheries, which provides that: 
 
8.4.2. States should prohibit dynam iting, poisoning and other comparable 
destructive fishing practices. 
 
Additional considerations: 
 1. In order for Members to apply this regime, it is mandatory that they establish a fisheries 
management system, which could be simplified comp ared to that provided for in Article V, and 
contains flexibilities and ad hoc mechanisms, and wh ich ensures the sustainability of resources.  To 
this end, the disciplines must provide for a five-year period to implement such a system. 
 
2. These subsidies must be notified and acti onable, in accordance with Article 5 of the 
Agreement on Subsidies and Countervailing Measures. 
                                                     
 
4 See http://www.fao.org/fishery/topic/424/en  Viewed on 7 January 2011. TN/RL/GEN/172 
Page 4  
 
  III. PROPOSED TEXT: 
ANNEX VIII
 
 
FISHERIES SUBSIDIES  
 
Article III  
 
Special and Differential Treatment of Developing Country Members  
 
 
III.2 For developing country Members other than LDC Members: 
 
(a) Subsidies referred to in Article I.1(a), (c ), (d) and (e) shall not be prohibited where 
they are granted for the purpose of promo ting food security, the development of local 
communities and poverty reduction and where they  relate exclusively to marine wild 
capture fishing performed within waters unde r the national jurisdiction of the Member 
States, provided that all the following cond itions are met:  (1) the activities are carried 
out on their own behalf by fishworkers, on an individual basis, which may include family members, or organized in associations, micro-enterprises or other forms of small producer organizations;  (2) the fishery product does not go beyond a small-scale trade and is mainly destined for direct human consumption;  (3) the 
vessels are not greater than 15 metres in length overall;  (4) the operations are carried 
out using simple fishing gear, tools and techniques and involve predominantly manual 
labour;  and (5) no destructive fishing practices are used.
[1] 
   Fisheries management m easures aimed at ensuring su stainability, such as the 
measures referred to in Article V, shall be implemented in respect of the fisheries in 
question within a period of not more th an (5) years, adapted as necessary to the 
particular situation, including by making use of ad hoc and indigenous fisheries 
management institutions and measures. 
 
[1] "Destructive fishing practices" refers to those practices recognized as such in Article 8.4.2 of the Code of 
Conduct for Responsible Fisheries. 
 
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