Bill 123.

Summary.

The bill adopts for the Republic of Panama the Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization and its annex, the Agreement on Fisheries Subsidies, pursuant to the Ministerial Decision of June 17, 2022 (Decisión Ministerial de 17 de junio de 2022). The protocol provides for insertion of the agreement into Annex 1A to the WTO Agreement, after the Agreement on Subsidies and Countervailing Measures. It opens the protocol to acceptance by Members, rules out reservations, and governs deposit, communication of acceptances and registration. The instrument was done at Geneva (Ginebra).

The annex applies to specific subsidies for wild marine capture fishing and fishing related activities at sea under the criteria of the Agreement on Subsidies and Countervailing Measures. It defines fish, fishing, fishing related activities, vessels and operators. Aquaculture and inland fishing fall outside its scope. It prohibits granting or maintaining subsidies to vessels or operators engaged in illegal, unreported and unregulated fishing, based on determinations by coastal Members, flag States, and regional fisheries management organizations or arrangements. It governs notices and information exchange before certain determinations, the duration of the prohibition, and measures by the subsidizing Member. It provides a 2 year period for certain subsidies granted by developing countries within the exclusive economic zone.

The agreement also prohibits subsidies for fishing or related activities concerning stocks recognized as overfished, except where subsidies or other measures are applied to rebuild them to a biologically sustainable level. It provides another 2 year period for certain developing country subsidies within the exclusive economic zone. It prohibits subsidies for fishing beyond coastal jurisdiction and the competence of a relevant regional organization or arrangement. Members must exercise special care and due restraint regarding foreign flagged vessels and stocks of unknown status. The agreement addresses the position of least developed countries when disputes are brought and provides for technical assistance and capacity building through a voluntary funding mechanism, in cooperation with the Food and Agriculture Organization of the United Nations (Organización de las Naciones Unidas para la Alimentación y la Agricultura) and the International Fund for Agricultural Development (Fondo Internacional de Desarrollo Agrícola).

Members must report information on subsidized fishing activities and, where possible, on fish stocks, conservation measures, fleets, vessels and catches. They must submit lists of vessels and operators linked to illegal fishing, report implementation measures and describe their fisheries regimes. The agreement governs requests for information between Members and notifications concerning regional organizations, without requiring disclosure of confidential information. It establishes the Committee on Fisheries Subsidies (Comité de Subvenciones a la Pesca), serviced by the WTO Secretariat (Secretaría de la OMC), to review information and the agreement’s operation and report to the Council for Trade in Goods (Consejo del Comercio de Mercancías). It establishes consultation and dispute settlement procedures linked to the GATT of 1994 and the Agreement on Subsidies and Countervailing Measures.

The final provisions allow narrowly defined disaster relief subsidies, preserve positions concerning territorial claims and maritime boundaries, and maintain rights and obligations under the Agreement on Subsidies and Countervailing Measures. The agreement would terminate if comprehensive disciplines were not adopted within four years of its entry into force, unless the General Council (Consejo General) decided otherwise. The bill also provides for entry into force on the day following promulgation and sets an international deposit and acceptance condition for its operation in the Republic of Panama. Its provisions concern public authorities responsible for foreign trade, fisheries and subsidy administration, as well as the fishing and maritime sectors and services connected with marine capture fishing.