A World Trade Organization Deal on Fisheries Subsidies: Across the finish line?

This research paper analyzes a draft World Trade Organization (WTO) agreement aimed at curbing fisheries subsidies that contribute to overcapacity and overfishing. It details the proposed prohibitions on subsidies for illegal, unreported, and unregulated (IUU) fishing, overfished stocks, and overcapacity, while examining the balance between strict disciplines and special and differential treatment for developing countries.

• The draft agreement proposes a prohibition on subsidies for fishing vessels or operators found to engage in illegal, unreported, or unregulated (IUU) fishing. This prohibition is triggered automatically by determinations from coastal states, flag states, or regional fisheries management organizations (RFMOs), provided they follow basic procedural steps and rely on factual information. To balance this, the subsidizing member determines the duration of the prohibition, and a 2-year grace period is provided for developing countries' artisanal fishing near the shore.
• The agreement includes a prohibition on subsidies for activities in fisheries where stocks are already declared overfished. However, exemptions are allowed if the subsidy is specifically intended to rebuild a stock or if fisheries management measures are in place to assist stock recovery. Similar to the IUU rules, a 2-year grace period applies to developing countries' small-scale inshore fishing of overfished stocks.
• To address overcapacity and overfishing, the draft prohibits specific subsidy types—such as those covering fuel, capital costs, vessel acquisition, engines, and equipment—unless the member can demonstrate that management measures keep stocks at a "biologically sustainable level."
• Special and differential treatment for developing countries regarding overcapacity and overfishing includes three primary exemptions: temporary subsidies for fishing in their domestic exclusive economic zone (EEZ) or under RFMO competence; permanent subsidies for low-income, resource-poor, and livelihood fishing within 12 nautical miles of the coastal baseline; and all subsidies for least-developed country (LDC) members and small fishing nations (those accounting for less than 0.7% of global marine capture production).
• The draft includes a provision that would prevent developing country members accounting for more than 10% of global marine capture production from using special and differential treatment, which, based on FAO data, would specifically apply to China.
• The agreement targets distant water fishing through a ban on subsidies for fishing in the unregulated high seas, a prohibition on subsidies contingent on fishing beyond the member's own waters, and a ban on vessels not flying the subsidizing member's flag or not under their effective control.
• Transparency and notification are central to the agreement; the use of exemptions is conditioned on the fulfillment of notification obligations. Members must notify fisheries-related information for subsidies, and those invoking management-based flexibilities must provide data on the status of stocks and the relevant management measures.

APA

Irschlinger, T., & Tipping, A. (2022). A World Trade Organization Deal on Fisheries Subsidies: Across the finish line? International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/world-trade-organization-deal-fisheries-subsidies

Chicago

Irschlinger, Tristan, and Alice Tipping. A World Trade Organization Deal on Fisheries Subsidies: Across the finish line? International Institute for Sustainable Development, 2022. https://www.iisd.org/articles/policy-analysis/world-trade-organization-deal-fisheries-subsidies.

Wikipedia

{{cite report |last1=Irschlinger |first1=Tristan |last2=Tipping |first2=Alice |title=A World Trade Organization Deal on Fisheries Subsidies: Across the finish line? |publisher=International Institute for Sustainable Development |date=7 June 2022 |url=https://www.iisd.org/articles/policy-analysis/world-trade-organization-deal-fisheries-subsidies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{irschlinger2022world, author = {Irschlinger, Tristan and Tipping, Alice}, title = {{A World Trade Organization Deal on Fisheries Subsidies: Across the finish line?}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jun, url = {https://www.iisd.org/articles/policy-analysis/world-trade-organization-deal-fisheries-subsidies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }