After WTO Ban on Subsidies, What Next for Global Fisheries?

 

[By Megan Jungwiwattanaporn, Tristan Irschlinger, Daniel Skerritt, Andrea Michelson, Zhang Yimo]

Countries across the world spend many billions of dollars every year subsidizing fishing that is environmentally damaging and unsustainable.

After years of tortuous negotiation under the auspices of the World Trade Organization (WTO), a global deal to reign in these subsidies emerged. The first part of this Agreement on Fisheries Subsidies finally entered into force this month, while a second part remains at the debate stage, held up by disagreements.

With consensus still lacking on crucial details, can these rules actually end subsidies that are contributing to overfishing across the world, and harming food supplies to some of the world’s most vulnerable people?

Dialogue Earth asked five experts for their views.

‘Fish populations finally have a chance to recover’

Megan Jungwiwattanaporn works on reducing harmful fisheries subsidies at The Pew Charitable Trusts

In the mid-1970s, 10% of fish stocks were fished at unsustainable levels. By 2021, that number had almost quadrupled to 37.7%. Subsidy-driven overfishing is depleting fish populations and hurting coastal communities who depend on a healthy ocean for their livelihoods and survival.

With the agreement now legally binding for the two-thirds of WTO member countries who have ratified it, fish populations finally have a chance to begin to recover.

And, as the WTO’s first sustainability-focused agreement, it paves the way for future multilateral treaties that protect the environment, and for broader fisheries reform at regional and country levels.

The agreement is also a step toward meeting one of the targets of the UN’s Sustainable Development Goals, which 193 countries adopted in 2015. As part of Goal 14, nations committed to reaching an agreement to end harmful fisheries subsidies.

But the work is not finished. Countries must implement the agreement by limiting some of the subsidies they give out that drive harmful practices. And WTO members must still finalize negotiations on additional rules that would end subsidies not included in the agreement: those that contribute to fishing in other countries’ waters and to overfishing and overcapacity, or a fleet’s ability to harvest more fish than is sustainable. Doing this will give fish populations an even better chance to recover.

‘‘Fish 2’ rules could bring even more progress’

Tristan Irschlinger is a senior policy adviser focusing on fisheries subsidies at the International Institute for Sustainable Development

The entry into force of the WTO agreement is a key milestone, and the next challenge will be to put these rules into practice effectively. But the story does not end there. WTO members are also negotiating a further set of rules, known as Fish 2, to make the agreement more comprehensive.

The current agreement, often referred to as Fish 1, targets specific situations where the harmful impacts of subsidies can be the most acute: illegal, unreported and unregulated fishing; overfished stocks; and unregulated high seas fisheries. Fish 2 aims to go further and prevent subsidies from contributing to overcapacity and overfishing in the first place. In other words, these further rules seek to better address the deep-seated and pervasive role of subsidies as a driver of unsustainable fishing.

As such, the impact of Fish 2 could be broader than Fish 1.

Talks on these additional rules advanced significantly and came close to conclusion in 2024, but progress has since slowed. It now appears unlikely that a final deal will be reached by the WTO’s 14th Ministerial Conference (MC14; March 2026). Still, the conference could play a critical role in injecting fresh momentum and steering negotiations toward a successful outcome. That should be the focus for WTO members at MC14.

‘Implementation is now key’

Daniel Skerritt is a senior analyst at the conservation NGO Oceana

With the agreement in force, attention turns from negotiation to implementation – at least for now. Starting 15 September, all ratifying members must comply with the Fish 1 rules: ending subsidies for illegal, unreported and unregulated fishing, fishing of overfished stocks, and unregulated high seas fishing. Equally important, members must now provide more complete and timely information on the scale, distribution and nature of their subsidy programs. This transparency is key to judging the successes – or failures – of Fish 1.

The agreement also empowers members to demand clarity from one another. For example, a country can request details about subsidies that support foreign vessels operating in its waters or ask for the scientific justification behind continued subsidization.

To support developing and least-developed countries, the newly launched Fish Fund will help build capacity for monitoring, reporting and compliance. This fund is important because it requires those providing the most subsidies to shoulder the greatest costs, ensuring the new commitments do not fall disproportionately on those least able to pay.

The clock has also started on the treaty’s four-year sunset clause. During this window, WTO members must agree to the more ambitious Fish 2 package, which is aimed at curbing capacity-enhancing subsidies that drive overfishing worldwide. Unfortunately, geopolitical headwinds have stalled talks and the vacant post of negotiation chair makes rapid progress unlikely. [The most recent chairperson, Iceland’s Einar Gunnarsson, stood down in July.]

Strong leadership from major economies, top subsidizers and coalitions such as the small island developing states and African, Caribbean and Pacific groups will be essential to keep momentum alive and deliver further meaningful reform.

‘This is a unique opportunity for Latin America, and for the ocean’

Andrea Michelson is regional coordinator of the Forum for the Conservation of the Patagonian Sea and Areas of Influence

The entry into force of the agreement marks a milestone on the road to better ocean governance and offers Latin America a unique opportunity to move towards better and necessary responsible management of marine resources.

Harmful subsidies not only endanger biodiversity and ecosystems, many of which are fragile, but also compromise the livelihoods, food security and economic resilience of the world’s most vulnerable coastal communities.

For countries in Latin America with vast coastlines and economies strongly linked to the sea, this is hugely important. On the one hand, it reinforces the role of regulations, transparency, regional commitment and an ecosystem approach. On the other hand, it opens up the possibility of redirecting and channelling financial resources towards responsible fishing and good practices.

Governments in the region must implement the agreement with commitment and dedication to the care of natural environments, coordinating efforts with all actors in the fishing sector, civil society and science. Only through multi-stakeholder engagement will this new regulatory framework translate into healthier, more resilient, equitable and productive oceans for present and future generations.

‘Significant implications for the world’s largest fisheries nation’

Zhang Yimo is the priority project coordinator of WWF China’s sustainable blue economy program

The entry into force of the agreement will have significant implications for China’s fisheries, particularly in enhancing the transparency of the nation’s subsidy policies.

The government has gained considerable experience in reforming fisheries subsidies in recent years. In 2021, it announced the abolition of fuel subsidies for fishing vessels. Instead, a new system was introduced in which only vessels that comply with certain conservation regulations can receive subsidies.

These “fisheries stewardship” subsidies in China still risk contributing to overcapacity and overfishing, according to a WWF report released last year. Under the existing framework, fishing vessel workers are not direct recipients of subsidies, and small-scale fishers receive significantly less support than those in the commercial sector. We recommend including vessel workers as subsidy recipients and ensuring income security for small-scale fishers, along with providing work-transition support for those who need to retire from fishing.

This is a significant year for China’s fisheries sector, as the country joined the Port State Measures Agreement and the WTO agreement, which it accepted in 2023, has come into force. These developments will strengthen China’s role in the global fight against illegal, unreported and unregulated fishing.

The WTO agreement coming into force encourages the global community to clarify many outstanding issues of harmful subsidies in fisheries – including who should receive subsidies and how to define overfishing.

This article appears courtesy of Dialogue Earth and may be found in its original form here.