WTO Agreement on Fisheries Subsidies

Source: WTO

Context: WTO Agreement on Fisheries Subsidies has entered into force after crossing the two-thirds acceptance threshold with recent ratifications by Brazil, Kenya, Viet Nam, and Tonga.

• It is the first WTO agreement focused on environmental sustainability, targeting illegal and harmful fishing subsidies to protect marine resources.

About WTO Agreement on Fisheries Subsidies:

• What it is?

• A binding multilateral agreement under the aegis of the World Trade Organization (WTO). Designed to curb harmful government subsidies that encourage overfishing and depletion of marine stocks.

• A binding multilateral agreement under the aegis of the World Trade Organization (WTO).

• Designed to curb harmful government subsidies that encourage overfishing and depletion of marine stocks.

• Under the Aegis of:

• Negotiated and adopted at the WTO’s 12th Ministerial Conference (MC12) in June 2022, Geneva.

• Objectives:

• Prevent Overexploitation: Prohibit subsidies that contribute to overfishing and overcapacity. Ensure Food Security: Secure livelihoods of millions dependent on fisheries for nutrition and income. Promote Fair Trade: Create a level playing field by disciplining subsidies that distort competition.

• Prevent Overexploitation: Prohibit subsidies that contribute to overfishing and overcapacity.

• Ensure Food Security: Secure livelihoods of millions dependent on fisheries for nutrition and income.

• Promote Fair Trade: Create a level playing field by disciplining subsidies that distort competition.

• Key Features:

• Subsidy Prohibitions: Bans subsidies for illegal, unreported, and unregulated (IUU) fishing, fishing of overfished stocks, and fishing on unregulated high seas. Transparency Mechanism: Members must notify subsidies and fishing activities for monitoring. Implementation Support: Establishment of WTO Fish Fund ($18+ million pledged) to aid developing countries and LDCs. Committee on Fisheries Subsidies: Regular dialogue, compliance review, and technical assistance. Multilateral Milestone: First WTO agreement focused on environmental sustainability and ocean governance.

• Subsidy Prohibitions: Bans subsidies for illegal, unreported, and unregulated (IUU) fishing, fishing of overfished stocks, and fishing on unregulated high seas.

• Transparency Mechanism: Members must notify subsidies and fishing activities for monitoring.

• Implementation Support: Establishment of WTO Fish Fund ($18+ million pledged) to aid developing countries and LDCs.

• Committee on Fisheries Subsidies: Regular dialogue, compliance review, and technical assistance.

• Multilateral Milestone: First WTO agreement focused on environmental sustainability and ocean governance.

• Significance:

• Global Marine Protection: Helps address the fact that 35.5% of global fish stocks are overfished. Economic Equity: Reduces unfair advantage of heavily subsidised fleets from large fishing nations. Support to Small Fishers: Protects livelihoods of hundreds of millions dependent on artisanal fisheries

• Global Marine Protection: Helps address the fact that 35.5% of global fish stocks are overfished.

• Economic Equity: Reduces unfair advantage of heavily subsidised fleets from large fishing nations.

• Support to Small Fishers: Protects livelihoods of hundreds of millions dependent on artisanal fisheries