WTO Fisheries Subsidies Agreement Takes Effect, Ushering in New Rules for Global Fisheries Governance

On September 15, the World Trade Organization (WTO) Fisheries Subsidies Agreement (hereinafter referred to as the “Agreement”) entered into force. Adopted at the WTO’s 12th Ministerial Conference on June 17, 2022, the Agreement is the first WTO agreement focusing on the environment and marks a significant step towards regulating fisheries subsidies within the WTO framework. China accepted the Agreement on June 27, 2023.

I. Background of the Agreement

In 2001, the WTO decided to include negotiations on fisheries subsidy disciplines in its work agenda. The WTO Rules Group formally launched negotiations in February 2002, but consensus was not reached after many years, and negotiations stalled from 2011 onwards. The UN’s 2030 Agenda for Sustainable Development, adopted in 2015, explicitly called for, by 2020, prohibiting certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminating subsidies that contribute to Illegal, Unreported and Unregulated (IUU) fishing. Against this backdrop, the WTO’s 11th Ministerial Conference in 2017 adopted a ministerial decision on fisheries subsidies, mandating the continuation of negotiations to reach an agreement by 2020. The Agreement was adopted by consensus at the 12th Ministerial Conference in 2022. However, consensus was not reached on disciplines for subsidies contributing to overcapacity and overfishing, requiring the negotiating group to continue its work. Furthermore, the Agreement stipulates that if comprehensive disciplines on fisheries subsidies are not adopted within four years of the Agreement’s entry into force, the Agreement shall terminate immediately, unless the WTO General Council decides otherwise.

II. Disciplines on Prohibited Subsidies

The Agreement establishes disciplines prohibiting certain types of subsidies:

• Prohibition of Subsidies to IUU Fishing: The Agreement prohibits the granting or maintaining of subsidies to vessels or operators engaged in or supporting IUU fishing or related fishing activities.
• Prohibition of Subsidies Concerning Overfished Stocks: The Agreement prohibits the granting or maintaining of subsidies for fishing or fishing-related activities concerning overfished stocks, except subsidies aimed at rebuilding the stock to biologically sustainable levels.
• Prohibition of Subsidies for Fishing on the High Seas Outside the Competence of RFMOs/As: The Agreement prohibits the granting or maintaining of subsidies for fishing or fishing-related activities on the high seas outside the competence of a relevant regional fisheries management organization or arrangement (RFMO/A).

Additionally, the Agreement calls for particular caution and due restraint when granting subsidies to vessels not flying the member’s flag, or when granting subsidies for fishing or fishing-related activities relating to stocks whose status is unknown.

III. Requirements for Member Notifications and Transparency

The Agreement requires WTO members to provide information on their fisheries subsidies, excluding confidential information. This includes:

1. The category or type of fishing activity for which the subsidy is provided.
2. Additional information, including:
   • The status of the fish stock in the fishery for which the subsidy is provided and the reference points used, and whether such stocks are shared with any other member(s) or managed by an RFMO/A.
   • Conservation and management measures applied to the relevant fish stock.
   • The vessel capacity of the fleet in the subsidized fishery.
   • The names and identification numbers of the subsidized fishing vessels or boats.
   • Catch data by species or group of species in the subsidized fishery.
3. Relevant management information, including:
   • A list of identified vessels and operators engaged in IUU fishing.
   • Existing measures to ensure implementation and administration of the Agreement, and new measures notified after the initial notification regarding the implementation of the prohibition on IUU fishing subsidies.
   • A description of the fisheries regime, including the legal, regulatory, and administrative procedures relevant to the Agreement, and any subsequent modifications.
   • The RFMO/As to which the member is a party, their relevant legal instruments, and management information, and any changes notified thereafter.

IV. Special and Differential Treatment for Developing Countries

The Agreement provides special and differential treatment (S&DT) for developing country members in three main aspects:

1. A two-year transition period for developing countries regarding the disciplines on IUU fishing subsidies and subsidies concerning overfished stocks, applicable within their territorial seas and Exclusive Economic Zones.
2. A call for members to exercise due restraint regarding matters involving Least Developed Countries (LDCs).
3. LDCs and developing countries with a global share of marine catch not exceeding 0.8 percent (“low-level fishing developing countries”) are required to notify the additional information only once every four years.

As some issues in the WTO fisheries subsidies negotiations remain unresolved, negotiations on additional provisions are ongoing. Follow-up negotiations focus on establishing disciplines prohibiting subsidies that contribute to overcapacity and overfishing, including the related S&DT for developing countries. These negotiations have also given rise to discussions on other topics, such as disciplines for subsidies to distant-water fishing, transparency regarding forced labour, and a subsidies review mechanism, indicating a trend of issue diversification and evolution.