Exploring the Potential Impacts of WTO Fisheries Subsidies Rules: The Case of Shrimp on the West Coast of Latin America

The report examines how WTO rules prohibiting subsidies for illegal, unreported, and unregulated (IUU) fishing, overfished stocks, and overcapacity would affect shrimp fisheries in the Eastern Tropical Pacific. It finds that many regional shrimp stocks are overfished and that subsidies, particularly for fuel, often support industrial fleets and contribute to overcapacity. The study suggests that while subsidy reform can lead to stock recovery and increased efficiency, it must be paired with broader fisheries management and stakeholder consultation to be effective.

• Shrimp fisheries in the Eastern Tropical Pacific (ETP) are economically significant, generating approximately USD 194 million in annual landed values and supporting at least 140,000 jobs.
• Many shrimp stocks in the ETP are currently overfished, with evidence showing a general decrease in total landings and a pattern of sequential overexploitation as fleets move to deeper waters.
• Fishery subsidies in the region primarily target the industrial sector through fuel price supports, tax exemptions, and vessel or gear maintenance, often increasing profit margins for vertically integrated export operations.
• The impact of a WTO prohibition on subsidies for IUU fishing would depend on the willingness of regional governments to identify their own vessels for infractions, as most IUU activities in these fisheries are carried out by domestic vessels.
• A broad prohibition of subsidies for fishing overfished or unassessed stocks could apply to nearly all shrimp fisheries in the region due to the high volume of bycatch, which is estimated to make up 80% of total shrimp trawl catch.
• Prohibiting fuel subsidies would likely reduce fishing effort in the Mexican industrial shrimp fishery where subsidies are critical for profitability, but would have less impact on artisanal fishers who face administrative hurdles in accessing such funds.
• Previous reductions in fishery subsidies in Mexico, Nicaragua, Ecuador, and Panama have been associated with stock recoveries, with catches actually increasing in Mexico and Ecuador.

APA

Cisneros-Montemayor, A. M., & Clarke, T. M. (2019). Exploring the Potential Impacts of WTO Fisheries Subsidies Rules: The Case of Shrimp on the West Coast of Latin America. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/subsidios-pesca-camaron-america-latina-informe-en.pdf

Chicago

Cisneros-Montemayor, Andrés M., and Tayler M. Clarke. Exploring the Potential Impacts of WTO Fisheries Subsidies Rules: The Case of Shrimp on the West Coast of Latin America. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/subsidios-pesca-camaron-america-latina-informe-en.pdf.

Wikipedia

{{cite report |last1=Cisneros-Montemayor |first1=Andrés M. |last2=Clarke |first2=Tayler M. |title=Exploring the Potential Impacts of WTO Fisheries Subsidies Rules: The Case of Shrimp on the West Coast of Latin America |publisher=International Institute for Sustainable Development |date=December 2019 |url=https://www.iisd.org/system/files/publications/subsidios-pesca-camaron-america-latina-informe-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cisnerosmontemayor2019exploring, author = {Cisneros-Montemayor, Andrés M. and Clarke, Tayler M.}, title = {{Exploring the Potential Impacts of WTO Fisheries Subsidies Rules: The Case of Shrimp on the West Coast of Latin America}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = dec, url = {https://www.iisd.org/system/files/publications/subsidios-pesca-camaron-america-latina-informe-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }