World Trade Organization Talks on Additional Fisheries Subsidy Rules
Summary
The report examines the November 29, 2024, draft text for 'Fish 2' negotiations at the WTO. It details a proposed hybrid approach combining a broad prohibition of subsidies that contribute to overcapacity and overfishing with a management-based exemption and special and differential treatment (SDT) for developing nations. Key provisions include a two-tiered system for demonstrating stock sustainability, specific rules for distant-water fishing, and a five-year review clause to potentially mandate quantitative subsidy reductions. The document highlights that while convergence is high, significant gaps remain regarding the duration of transition periods and the definition of artisanal fishing.
Key insights
- The draft text proposes a broad prohibition of subsidies that contribute to overcapacity and overfishing, including a non-exhaustive list of presumptive prohibited types such as vessel construction, fuel, ice, bait, and operating loss coverage.
- A management-based exemption allows subsidies to continue if the member demonstrates that measures are implemented to maintain stocks at a biologically sustainable level. This uses a two-tiered system where developed members and the 10 largest subsidizers face stricter, quicker, and more detailed demonstration requirements.
- Special and Differential Treatment (SDT) provides four types of exemptions: permanent exemptions for Least Developed Countries (LDCs) and small developing fishing nations (those with “0.8% or less of global marine capture production”), a permanent exemption for small-scale and artisanal fishing, and a transitional exemption for large-scale fishing in a member's Exclusive Economic Zone (EEZ) or under RFMO/As.
- Subsidies targeted at fishing beyond a member's jurisdiction (distant-water fishing) are subject to a 'restraint obligation' to refrain from providing them to the greatest extent possible, and are prohibited unless the stricter first-tier sustainability demonstrations are met.
- The draft includes transparency obligations requiring annual notifications of vessels or operators suspected of using forced labour and a list of fisheries access agreements, as well as data to determine aggregate subsidy levels for ranking purposes.
- A strong review clause is included to assess the rules within 5 years of entry into force; if subsidies have increased, the review may recommend quantitative limits or commitments to reduce subsidies.
- The adoption of these additional disciplines would disactivate the termination clause in the 2022 Agreement, which otherwise would terminate the agreement if comprehensive disciplines were not agreed upon within 4 years of entry into force.
- Estimated data indicates that permanent SDT exemptions for LDCs, small fishing nations, and artisanal fleets in developing countries cover a relatively small share of global subsidies (approximately 1.7%, 5%, and 5% respectively).
Cite the original document
- APA
- Irschlinger, T. (2025). World Trade Organization Talks on Additional Fisheries Subsidy Rules. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-07/wto-talks-additional-fisheries-subsidy-rules.pdf
- Chicago
- Irschlinger, Tristan. World Trade Organization Talks on Additional Fisheries Subsidy Rules. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-07/wto-talks-additional-fisheries-subsidy-rules.pdf.
- Wikipedia
- {{cite report |last1=Irschlinger |first1=Tristan |title=World Trade Organization Talks on Additional Fisheries Subsidy Rules |publisher=International Institute for Sustainable Development |date=July 2025 |url=https://www.iisd.org/system/files/2025-07/wto-talks-additional-fisheries-subsidy-rules.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{irschlinger2025world, author = {Irschlinger, Tristan}, title = {{World Trade Organization Talks on Additional Fisheries Subsidy Rules}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jul, url = {https://www.iisd.org/system/files/2025-07/wto-talks-additional-fisheries-subsidy-rules.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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