WTO’s Global Fisheries Subsidy Ban Enters Into Force

Agreed by more than 100 WTO members, including the United States, the European Union and China, the agreement sets binding rules requiring governments to consider the legality and sustainability of the fishing activities they subsidize.

The discussions began in 2001, with members reaching consensus in June 2022. Broader rules on subsidies contributing to overcapacity and overfishing remain under negotiation.

The deal bans subsidies to any vessel or operator engaged in illegal, unreported and unregulated (IUU) fishing, or fishing of overexploited stocks, except to rebuild stocks to a biologically sustainable level.

It also prohibits subsidies for unregulated fishing on the high seas.

Global fisheries subsidies totaled $35.4 billion in 2018, $22 billion of which increased fleet capacity.

Countries must take special care when granting subsidies to vessels not flying their flag or when stock status is unknown, and must notify the WTO on implementation, including stock status, subsidized vessels, and IUU lists. Disputes go to the WTO’s settlement body.

Least-developed and some developing countries are exempt from bans in their EEZs for two years, may notify every four years, and will receive assistance from an $18 million fund.