The working document from the Rules Negotiation was released on 28 May,
2008. This document consists of three parts: Annex A(Chairman's Explanatory
note and Anti-dumping, Annex B(Subsidy), and Annex C(Fisheries Subsidy)
This paper analyses the working document for fisheries subsidy agreement
which was intended to provoke discussions on the broad parameters of possible
outcomes to the negotiations to draft final texts.
The first Draft for fisheries subsidy agreement consists of eight Articles:
prohibition of certain fisheries subsidies; general exceptions to prohibited
subsidies; special and differential treatment of developing country Members;
general discipline on the use of subsidies; fisheries management; notifications
and surveillance; transitional provisions; and dispute settlement.
This Draft causes considerable concerns to Korean government, because it
contains several provisions disadvantagious to Korean fisheries industry.
First, it does not establish a non-actionable subsidy at all.
Second, Article I prohibits subsidies the benefits of which are conferred on
operating costs of fishing or service vessels, which include, among others, fuel subsidy most sensitive to Korean fishery industry.
Third, subsidies exclusively for improving crew safety are not automatically
considered as non-actional subsidy.
Fourth, there had been put too much burden on developed countries for
notifications and surveillance obligations and transitional provisions.
Fifth, dispute settlement clause puts too much burden on the subsidizing
country, because where a subsidy that has not been notified as required is the
subject of dispute settlement pursuant to the DSU, such subsidy shall be
presumed to be prohibited.