WTO Implements Landmark Agreement to Limit Fisheries Subsidies
The World Trade Organization (WTO) has announced the entry into force of a historic agreement designed to restrict multibillion-dollar subsidies that contribute to global overfishing. Environmental groups and experts have hailed the move as a crucial step toward restoring depleted fish stocks worldwide.
This is the first WTO agreement to take effect since 2017, following years of stalled negotiations and internal disputes. The deal officially came into force on Monday, after Brazil, Kenya, Tonga, and Vietnam completed ratification. The agreement, initially reached in 2022, has now secured the required support of two-thirds of WTO member states.
Under the new rules:
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governments are prohibited from granting subsidies that promote overfishing;
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subsidies for fishing in international waters beyond national jurisdiction are banned;
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a dedicated fund has been created to support poorer nations in adapting to the agreement.
“Global fish stocks will now have a chance to recover, benefitting local fishers whose livelihoods depend on healthy oceans,” said Megan Jungwiwattanaporn of the Pew Charitable Trusts.
According to a 2019 Marine Policy study, governments worldwide provide an estimated $35.4 billion annually in subsidies to their fishing fleets, including fuel that enables distant-water operations. The five largest subsidizing nations are China, the EU, the US, South Korea, and Japan, though not all fall under the WTO deal’s scope.
Talks on a second phase of the fisheries agreement — covering more contentious issues excluded from the initial deal — have stalled, as India and other developing economies seek exemptions that many countries argue are unworkable.
The first phase of the agreement, which entered into force on Monday, is the product of over 20 years of negotiations and will expire in four years unless broader rules are finalized.
WTO Director-General Ngozi Okonjo-Iweala said earlier this month that she remains optimistic the organization can either complete the talks or find a way to prevent the deal from lapsing.
