World Trade Organization Talks on Subsidies That Contribute to Overcapacity and Overfishing

The report examines a draft WTO text designed to complement the 2022 Agreement on Fisheries Subsidies by prohibiting subsidies that drive overcapacity and overfishing. It details a 'hybrid' approach combining a broad prohibition with management-based exemptions and special and differential treatment (SDT) for developing nations. The text also proposes stricter rules for distant-water fishing and enhanced transparency requirements, including notifications on forced labour and aggregate subsidy levels. While not a final agreement, the report argues the draft represents a significant compromise to align global fishing subsidies with sustainable development goals.

• The draft text proposes a broad prohibition of subsidies that contribute to overcapacity and overfishing, specifically listing high-risk categories such as vessel construction, fuel, ice, bait, and operating loss coverage. These listed subsidies are considered 'presumptively prohibited,' though the list is not exhaustive.
• A 'management-based exemption' allows prohibited subsidies to continue if the member demonstrates that measures are in place to maintain stocks at a biologically sustainable level. This system is two-tiered: developed members and the top 10 subsidizers must provide quicker and more detailed demonstrations than other developing members.
• Special and Differential Treatment (SDT) provisions include four types of exemptions for developing countries: permanent exemptions for Least Developed Countries (LDCs) and small fishing nations (under 0.8% of global capture), a permanent exemption for small-scale/artisanal fishing, and a temporary transition period for large-scale fishing in Exclusive Economic Zones (EEZs) or under RFMOs.
• The draft introduces a specific obligation for subsidies tied to fishing beyond a member's own jurisdiction (distant-water fishing). Members are asked to refrain from these subsidies 'to the greatest extent possible' unless they meet strict sustainability criteria, and these activities will be subject to a dedicated monitoring process.
• New transparency and notification requirements would require members to annually report on vessels suspected of using forced labour, fisheries access agreements, and non-specific fuel subsidies. Additionally, members must provide data to establish a ranking of aggregate fisheries subsidies to identify 'first tier' members.
• The text includes a strong review clause requiring an assessment of the rules' effectiveness within five years. If global subsidy levels or distant-water fishing subsidies have increased, the review must include commitments to quantitatively limit or reduce them.

APA

Irschlinger, T. (2024). World Trade Organization Talks on Subsidies That Contribute to Overcapacity and Overfishing. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-05/world-trade-organization-fisheries-subsidies-update.pdf

Chicago

Irschlinger, Tristan. World Trade Organization Talks on Subsidies That Contribute to Overcapacity and Overfishing. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-05/world-trade-organization-fisheries-subsidies-update.pdf.

Wikipedia

{{cite report |last1=Irschlinger |first1=Tristan |title=World Trade Organization Talks on Subsidies That Contribute to Overcapacity and Overfishing |publisher=International Institute for Sustainable Development |date=May 2024 |url=https://www.iisd.org/system/files/2024-05/world-trade-organization-fisheries-subsidies-update.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{irschlinger2024world, author = {Irschlinger, Tristan}, title = {{World Trade Organization Talks on Subsidies That Contribute to Overcapacity and Overfishing}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = may, url = {https://www.iisd.org/system/files/2024-05/world-trade-organization-fisheries-subsidies-update.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }