Agreement on fisheries subsidies

The World Trade Organization’s (WTO) agreement on fisheries subsidies, which went into effect this September, represents a significant step forward in global efforts to protect the oceans, as it aims to eliminate harmful fisheries subsidies, ultimately contributing to a more resilient and prosperous ocean for future generations. The agreement bans support for overfishing of fish stocks, subsidies that subsidize illegal, unreported and unregulated (IUU) fishing, and fishing on the high seas without proper management.

What are the basic premises of the adopted agreement?

The shape of the fisheries subsidies agreement was originally agreed upon at the 12th Ministerial Conference in June 2023. However, the support of 2/3 of the organization’s members was needed for it to enter into force. With four more countries – Brazil, Kenya, Tonga and Vietnam – recently ratifying the document, the required majority has been reached and the new rules have entered into force. This is the first WTO agreement focusing on sustainable development, establishing new rules on transparency and implementation to protect ocean resources. The key tenets of the agreement are:

• A ban on government subsidies for illegal, unregulated and unreported fishing;
• A ban on subsidizing fishing on the unregulated high seas;
• A ban on subsidies for the most disadvantaged herds;
• regulations on the harmful practice of re-flagging fishing vessels to another jurisdiction;
• extensive transparency and notification provisions to monitor implementation of the agreement.

The adoption of the agreement was preceded by lengthy multilateral negotiations. With binding and enforceable provisions, this landmark agreement is expected to significantly reduce overfishing, ensure sustainable fisheries and promote better practices for coastal communities around the world. It is also one of the key priorities of the European Pact for the Oceans, which outlines the EU’s commitment to protecting the oceans.

UN Sustainable Development Goals

In line with UN Sustainable Development Goal 14.6, which mandates the WTO to ban subsidies harmful to fisheries, the agreement includes a ban on support for illegal, unregulated and unreported (IUU) fishing, coupled with unprecedented transparency provisions. In addition, it bans all fishing subsidies in the unregulated high seas, which are the most vulnerable areas of the ocean because they lack a concrete and coordinated management system.

WTO Fish Fund

The entry into force of the agreement will also launch the WTO Fish Fund, which aims to help developing and least-developed countries implement the agreement, improve sustainability and benefit fishing communities around the world. The Fish Fund works with key partners, including the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD), the World Bank and the World Trade Organization (WTO), to leverage their expertise, create synergies, fill gaps and avoid duplication.

The European Union and its member states make the majority of contributions to this important fund. In 2024, the EU has pledged €1 million to the fisheries funding mechanism under this measure.

What does the entry into force of the agreement mean?

With the entry into force of the agreement, WTO members will have to transpose the new multilateral rules into their internal fisheries subsidies framework. To monitor their implementation, WTO members must provide a range of detailed information, which will be reviewed by a new WTO Committee on Fisheries Subsidies, created for the occasion.

The agreement has been adopted by 111 WTO members, who have accepted its principles. As part of its ongoing efforts, the EU is calling on the organization’s other members, especially large fishing nations, to accept the agreement quickly in order to extend the benefits it brings.

The EU and its role in implementing the agreement

The European Union was among the first to adopt the agreement on behalf of the 27 member states and played a key role in reaching this landmark agreement on fisheries subsidies. As early as June 2023. The EU has actively encouraged other WTO members to adopt it without delay, while reiterating its commitment to continue to combat harmful fisheries subsidies around the world and negotiating additional provisions to complement this first-stage agreement.