A: DRAFT CONSOLIDATED TEXT OF THE PROPOSED FISHERIES SUBSIDIES DISCIPLINES

Circulated as proposed Annex VIII of the SCM Agreement by the Chair of the Rules Group, Ambassador Guillermo Valles Games, on 30 November 2007:

Annex VIII

Fisheries Subsidies

Article I

Prohibition of Certain Fisheries Subsidies

1. I.1 Except as provided for in Articles II and III, or in the exceptional case of natural disaster relief, the following subsidies within the meaning of paragraph 1 of Article 1, to the extent they are specific within the meaning of paragraph 2 of Article 1, shall be prohibited:

1. (a) Subsidies the benefits of which are conferred on the acquisition, construction, repair, renewal, renovation, modernization, or any other modification of fishing vessels or service vessels, including subsidies to boat building or shipbuilding facilities for these purposes.

2. (b) Subsidies the benefits of which are conferred on transfer of fishing or service vessels to third countries, including through the creation of joint enterprises with third country partners.

3. (c) Subsidies the benefits of which are conferred on operating costs of fishing or service vessels (including licence fees or similar charges, fuel, ice, bait, personnel, social charges, insurance, gear, and at-sea support); or of landing, handling or in- or near-port processing activities for products of marine wild capture fishing; or subsidies to cover operating losses of such vessels or activities.

4. (d) Subsidies in respect of, or in the form of, port infrastructure or other physical port facilities exclusively or predominantly for activities related to marine wild capture fishing (for example, fish landing facilities, fish storage facilities, and in- or near-port fish processing facilities).

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