WORLD TRADE
ORGANIZATIONTN/RL/W/9
20 June 2002
(02-3370)
Negotiating Group on Rules Original:  English
PROPOSAL FROM THE PEOPLE'S REPUBLIC OF CHINA
ON FISHERIES SUBSIDIES
The following communication, dated 14 June 2002, has been received from the Permanent
Mission of the People's Republic of China.
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As a developing country having substantial interests in fishery, China has been following
closely the discussion on fisheries subsidies under the Negotiating Group on Rules.  This proposal is
intended to give early direction to the negotiation on this issue.
1. The scope of fisheries subsidies
Different subsidies could be identified on different activities in the fishery sector, for example
fish breeding agriculture, fishing at high seas, fishing in the Exclusive Economic Zones
(EEZs), etc.  Taking into account the different natures and effects of these subsidies on trade,environment and sustainable development, differential consideration should be given
accordingly.  Therefore, early determination on the scope of subsidies to be negotiated is
necessary to facilitate future discussion on this issue.
2. S&D treatment
Special and differential treatment to developing countries, particularly to the least developed
countries, is an important principle in the WTO and has been consistently emphasized inprevious rounds of negotiations.  With regard to the fisheries subsidies, it is already pointed
out in the Doha Ministerial Declaration that participants should take into account the
importance of this sector to developing countries.  Therefore, S&D treatment should be
accorded to developing countries while participants aim to clarify and improve the disciplines
on fisheries subsidies.
3. "Non-actional" subsidies
Certain subsidies, such as those on infrastructure construction, prevention and control of
disease, scientific research and training, fisherman's switching to other businesses, have no
adverse effect on trade, environment and sustainable development.  Moreover, such subsidiescontribute to the protection of environment and sustainable development of fishery resources.
Therefore, these subsidies should be defined as "non-actionable" subsidies and should not be
challenged.
This paper is the first contribution from China to the deliberations of the Negotiating Group
on Rules.  It is without prejudice to the position that China might formulate on fisheries subsidies in
the future.
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