There is perhaps an important detail here. The subsidy is targeted according to the country that gives the subsidy, not the flag of the boat. For example, if Canada gives a subsidy to a boat that has a Panamanian flag, the subsidy is targeted. It is very clear in the text. What you are talking about as leeway is limited. We target the country that gives the subsidy, so flying another flag won't help. I think that is important.
On February 28th, 2008. See this statement in context.