Assessing and Managing Fishing Capacity in the Context of World Trade Organization Disciplines on Fisheries Subsidies

This policy brief examines the measurement and management of fishing capacity within the framework of World Trade Organization (WTO) negotiations to discipline fisheries subsidies. It provides technical definitions of capacity, overcapacity, and overfishing based on FAO guidelines, and discusses the challenges of monitoring these metrics in multi-species and artisanal fisheries. The document also analyzes global fleet trends from 1950 to 2015, noting a significant increase in vessel numbers and engine power alongside a decline in stock abundance.

• WTO negotiations are working toward prohibiting fisheries subsidies that contribute to overcapacity and overfishing, including those for vessel construction, modernization, equipment, or fuel. A proposed exception may allow these subsidies if a member can demonstrate the implementation of measures to maintain stocks at biologically sustainable levels, often using maximum sustainable yield (MSY) or alternative reference points.
• Fishing capacity is defined as the potential amount of fish or effort a fleet can produce if fully utilized and not constrained by management. It is measured via inputs (e.g., gross registered tonnage, horsepower, or gear units) or outputs (the maximum amount of fish produced over a period given biomass and technology).
• The document distinguishes between excess capacity, a short-term phenomenon where capital is underutilized due to economic or environmental factors, and overcapacity, a long-term mismatch between actual resources and those needed to meet management objectives. Overcapacity occurs biologically when capacity generates mortality that reduces biomass below MSY levels, or economically when it reduces yields below maximum economic yield (MEY).
• Overfishing and overfished stocks are distinct biological states: overfishing occurs when fishing mortality (F) exceeds the sustainable maximum (Fmsy), while a stock is overfished when its biomass (B) falls below the level required to produce MSY (Bmsy).
• Monitoring fishing capacity requires varying levels of data, ranging from Level 0 (no quantitative data) to Level 4 (detailed biological information on stocks, including biomass and fishing mortality rates). Qualitative indicators of overcapacity include declining catch per unit effort (CPUE), increasing conflicts within the sector, and a 'race for fish' where total allowable catches (TAC) are exhausted prematurely.
• Global fishing capacity increased significantly between 1950 and 2015, with the total number of vessels rising from 1.7 million to 3.7 million and engine power growing from 19.5 gigawatts (GW) to 145.9 GW. While vessel numbers decreased in Europe, North America, and North East Asia, they grew more than sixfold in South East Asia and fivefold in Sub-Saharan Africa.
• Evidence indicates a global problem of overcapacity, as the percentage of stocks fished at biologically unsustainable levels rose from 10% in 1974 to 34.2% in 2017. This is mirrored by a systematic decline in both CPUE and stock abundance across virtually all regions since 1950.

APA

International Institute for Sustainable Development (2021). Assessing and Managing Fishing Capacity in the Context of World Trade Organization Disciplines on Fisheries Subsidies. https://www.iisd.org/system/files/2021-04/fishing-capacity-wto-fisheries-subsidies.pdf

Chicago

International Institute for Sustainable Development. Assessing and Managing Fishing Capacity in the Context of World Trade Organization Disciplines on Fisheries Subsidies. 2021. https://www.iisd.org/system/files/2021-04/fishing-capacity-wto-fisheries-subsidies.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Assessing and Managing Fishing Capacity in the Context of World Trade Organization Disciplines on Fisheries Subsidies |date=April 2021 |url=https://www.iisd.org/system/files/2021-04/fishing-capacity-wto-fisheries-subsidies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2021assessing, author = {{International Institute for Sustainable Development}}, title = {{Assessing and Managing Fishing Capacity in the Context of World Trade Organization Disciplines on Fisheries Subsidies}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = apr, url = {https://www.iisd.org/system/files/2021-04/fishing-capacity-wto-fisheries-subsidies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }