WORLD TRADE  
ORGANIZATION  TN/RL/W/196 
22 November 2005 
 (05-5525) 
Negotiating Group on Rules Original:   English 
  
 
FISHERIES SUBSIDIES 
 
Paper from Brazil;  Chile;  Colombia;  Ecuador;  Iceland; 
 
New Zealand;  Pakistan;  Peru and the United States  
 
 
 The following document communication, received on 22 November 2005, is being circulated 
at the request of New Zealand.  
_______________ 
 
 
Introduction
 
 
 
1. Over the past year, the Negotiating Gro up on Rules has made good progress in responding to 
the Doha Declaration call for improved disciplines in fisheries subsidies.  Such progress is welcome, 
although Members will clearly need to intensify their work following the Hong Kong Ministerial 
meeting if we are to achieve a substantial result.    2. The reasons for singling out fisheries subsidi es for particular focus in  the Rules negotiations 
remain as valid now as they did at Doha.  Concerns  about the potentially harmful trade, development 
and environmental effects of fisheries subsidies have  increased as the undisput ed crisis facing global 
fisheries worsens.    3. WTO negotiators are tasked with addressing those subsidies that are a major contributing 
factor to this global crisis.  The effects of around US$15 billion a year in subsidies, equivalent to 
twenty per cent of global industry revenues, are obvious.  The FAO has found that a quarter of the 
world’s most valuable commercial fisheries are ove rexploited or significantly depleted.  Another 50% 
are fully exploited.  It is now widely recognized  in the literature that subsidies are one major 
contributing factor.  Subsidies are part of the problem, and the WTO (as the international organization with both the ability and responsibility to take acti on on subsidies) must therefore be part of the 
solution.   
 4. Negotiators appear to agree that the task  of strengthening WTO disciplines on fisheries 
subsidies is not a substitute for work in other sp ecialist bodies, particularly in improving fisheries 
management.  But it will provide an essential comp lement and support to the work of other inter-
governmental organizations, and environment an d conservation groups around the world.  As 
Ministers have recognised, the WTO is the in ternational organization with the ability and 
responsibility to take action on subsidies that affect  trading opportunities and negatively affect this 
global resource.   TN/RL/W/196 
Page 2  
 
 Progress to Date
 
 
5. Following up on a suggested work plan from Argentina, Chile, Ecuador, New Zealand the Philippines and Peru in November 2004
1, over this last year Members have contributed to discussions 
addressing most of the areas suggested as "next st eps in the negotiation".  These include detailed 
submissions reviewing parameters that need to  be considered for management services, vessel 
decommissioning and licence retirement, and fish eries infrastructure [respectively JOB(05)/44, 
TN/RL/GEN/41 and TN/RL/GEN/70].  The one major area yet to be addressed in detail is the category of "certain fisheries-rela ted social insurance programmes".  
 
6. Several other substantive c ontributions have focused on sp ecial and differential treatment, 
including from Brazil (TN/RL/GEN/56) and a gro up of small economies for the Caribbean and the 
Pacific (TN/RL/GEN/57/Rev.2), which included discussion of key issues such as the treatment of artisanal and small scale fishing, and th e question of subsidised access fees.   
 
7. Other important contributions over the year  came from Japan, Korea and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen a nd Matsu (TN/RL/W/172 of 22 February 2005) on 
the framework for disciplines on fisheries subsidies,  and from Japan on IUU fishing.  The European 
Communities also submitted a proposal on the question of enforcement and transparency 
(TN/RL/GEN/30 of 12 May 2005).  Aquaculture was discussed in TN/RL/GEN/54.   
8. These papers provide a strong basis for ev entually reaching a common understanding of the 
definitions and treatment of various categories of fisheries subsidies, and for related discussions on 
the nature and extent of disciplines that will be needed.   9. The Rules Negotiating Group has taken an important step forward and devoted time to 
engaging in detailed discussions of fish subsidies through the exchange of information on various fish 
subsidy programs, which has enabled Members to l earn more about current Member fish subsidies 
practices.    10. It will be important to continue to deve lop a better common understanding of Members' 
fisheries subsidies programs.  While there have been  useful exchanges over the past year, it has been 
apparent during the discussions that there is a lack of transparency concerning some Members' 
activities on fish subsidies - another reminder of the ex tent to which transparency is lacking in this 
sector.  As the negotiations begin to concentrate on text, it will be imperative for Members to provide 
more detail on their fisheries s ubsidies practices, which will fac ilitate more focused discussions.  
Enhanced transparency of fisheries subsidies practices must be one of the outcomes from these 
negotiations.  
 
Next Steps
 
 
11. While there has been good coverage of a broad range of fisheries subsidies programmes, these 
discussions have identified a number of areas that remain to be addressed.  These include: 
 
• conservation subsidies (e.g. artificial reefs, aid for restocking of fish resources and potentially 
fisheries enhancement expenditure); 
• regional development programmes; 
• fisheries-related social insurance programmes (e .g. job training to assist the transition out of 
the industry); 
• research and development programmes. 
                                                      
1 TN/RL/W/166  TN/RL/W/196 
 Page 3 
 
 12. We will need to deepen the analysis on the i ssues we have already c overed, and in addition, 
further work will be necessary on the scope of the di sciplines (e.g. clarification of the treatment of 
inland fisheries), and in further elaborating on special and differential treatment under the new 
disciplines.  We would welcome further contributi ons from other Members in these and other areas.  
 
Text-based proposals  
 
13. Regardless of whether there are any furt her contributions from Members under the present 
"issue identification" stage, however, the negotia tions should move quickly after the Hong Kong 
Ministerial into a second phase directed to producin g a text-based outcome for the new disciplines.  
Accordingly, this discussion will depend on Members'  contributions focused around textual proposals.  
In order to complement this work, and to provide  a framework of referenc e for text-based proposals, 
Members will need to return to the question of structure of the disciplines, characterised by the 
choices between the two approaches, "top down" (a broad prohibition with exceptions) and the 
"bottom up" (prohibition of subsidies explicitly listed).   
14. Members will also need to return to the appropr iate approach for disciplines.  In this context, 
the cosponsors endorse the following principles to guide  the development of the new disciplines.  The 
new rules:  
• need to be simple and enforceable; 
• should provide for a far greater level of transparency than under current rules; 
• should be both flexible and responsive, not ju st in the structure of  the disciplines but in 
accommodating and reflecting the dynamic nature of  the fishing industry, and evolution in the 
nature and extent of fisheries subsidies policy and practice; 
• must be consistent with the Doha mandate; 
• must recognise the importance of this sector fo r developing countries through appropriate 
special and differential treatment. 
 15.  The co-sponsors continue to  support strongly the concept of a broad-based prohibition as the 
best means for delivering on the Doha mandate.  The principles noted above are all consistent with a 
broad-based prohibition. 
 
Conclusions
 
 
16. We note that ambition in other areas of the Doha negotiations is cast in terms of seeking 
"commercially meaningful" results.  In the context of fisheries subsidies, this can be translated into 
seeking an outcome that effects both policy change, a nd change in practice.  The end result must be 
significant reductions to the levels of distorting subsidies provided to this sector, as well as 
appropriate checks to ensure against circumvention.   17. A limited number of countries provide the vast majority of distorting subsidies, not only 
encouraging unsustainable fisheries practices but al so depressing global prices in a way that adversely 
affects Members’ interests, including developing country interests.    18. We are committed to achievi ng a substantial result on fisheri es subsidies disciplines in this 
Round.  This is a one- time opportunity for the WTO to make a real, effective contribution to resolving the crisis facing global fisheries.  We do not have the luxury of incrementalism - the race for 
the last fish may be over before the WTO deliver s results from a tenth multilateral round.  Given the 
importance of this sector for developing countries, both as an export earner and as a significant domestic industry, effective and strong discip lines on fisheries subsidies will make a major 
contribution to ensuring that this truly is a "development" Round.  
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