Potential Implementation Steps of a WTO Agreement on Fisheries Subsidies

This policy brief by the International Institute for Sustainable Development (IISD) provides practical guidance for World Trade Organization (WTO) members on implementing potential agreements to prohibit harmful fisheries subsidies. It outlines general benchmarking and planning steps, specific implementation strategies for three proposed WTO disciplines—IUU fishing, overfished stocks, and overfishing/overcapacity—and discusses the necessary role of technical assistance for developing countries.

• The first essential step for WTO members to ensure compliance with any fisheries subsidy agreement is the creation of a comprehensive subsidy inventory. This inventory should document all financial contributions by governments or public bodies, including the recipient, the providing agency, the reason for the subsidy, and the amount, to facilitate both WTO notification obligations and domestic policy reform.
• Implementing a discipline against subsidies for illegal, unregulated, and unreported (IUU) fishing requires a system to identify vessels or operators subject to an IUU determination. This involves inter-agency and cross-border cooperation to link subsidy databases with infringement records, and the establishment of mechanisms to both prevent new subsidies (ex-ante) and withdraw existing ones (ex-post).
• Reform of subsidies for overfished stocks depends on the ability to accurately determine stock status. The brief notes that many WTO members are "data-poor," necessitating the use of alternative indicators like catch per unit of effort when traditional scientific surveys are unavailable. Implementation may involve immediate cessation, temporary cessation, or a phaseout of subsidies.
• Addressing overfishing and overcapacity involves complex measurements of fishing capacity, such as boat number, size, horsepower, and days at sea. Proposed WTO approaches include prohibiting subsidies that reduce operational or capital costs, capping total subsidy levels, or specifically prohibiting subsidies for large-scale industrial fishing while exempting small-scale fisheries in developing country exclusive economic zones (EEZs).
• There is a significant gap in donor support for fisheries subsidy reform. Research from 2012 to 2017 showed that while USD 3.4 billion was provided for fisheries-related assistance, there was no evidence of support specifically for subsidy reform, and limited assistance for combatting IUU fishing or conducting stock assessments.
• Successful subsidy reform requires a coordinated government approach, often led by a ministry of fisheries with support from finance and trade ministries. This may necessitate the creation of inter-agency working groups, memorandums of understanding (MoUs), and updated IT systems to ensure transparency and the automatic sharing of information.

APA

Redding, T., & Macfadyen, G. (2020). Potential Implementation Steps of a WTO Agreement on Fisheries Subsidies. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/steps-wto-agreement-fisheries-subsidies.pdf

Chicago

Redding, Theresa, and Graeme Macfadyen. Potential Implementation Steps of a WTO Agreement on Fisheries Subsidies. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/publications/steps-wto-agreement-fisheries-subsidies.pdf.

Wikipedia

{{cite report |last1=Redding |first1=Theresa |last2=Macfadyen |first2=Graeme |title=Potential Implementation Steps of a WTO Agreement on Fisheries Subsidies |publisher=International Institute for Sustainable Development |date=April 2020 |url=https://www.iisd.org/system/files/publications/steps-wto-agreement-fisheries-subsidies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{redding2020potential, author = {Redding, Theresa and Macfadyen, Graeme}, title = {{Potential Implementation Steps of a WTO Agreement on Fisheries Subsidies}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = apr, url = {https://www.iisd.org/system/files/publications/steps-wto-agreement-fisheries-subsidies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }