As Landmark Fishing Deal Approaches Entry Into Force, Governments Should Prepare

As a global agreement to curb subsidies contributing to overfishing and illegal fishing inches toward entry into force, governments are now focusing on how they will implement the deal, including by ensuring that developing countries have the resources needed to do so. More than one-third of the world’s fish stocks are fished unsustainably, according to the United Nations Food and Agriculture Organization (FAO), while illegal, unreported and unregulated (IUU) fishing accounts for up to 1 in 5 wild fish caught.

In 2022, the World Trade Organization (WTO) adopted the deal in question – a landmark agreement to curtail harmful fishing subsidies, which many fleets around the world use to fish unsustainably and, in some cases, illegally. The agreement will enter into force once 111 WTO member countries have ratified it; to date, 87 members have completed this step.

The historic agreement prohibits subsidies that contribute to IUU fishing, enable fishing of overfished stocks or support fishing of unmanaged stocks on the high seas. The deal also creates a mechanism for developed countries to provide technical assistance and capacity-building to developing countries.

Specifically, the agreement creates a “fish fund” to help developing countries and least-developed countries (LDCs) implement the deal. Starting in November 2022, the fish fund opened to donations from member countries. Since, it has received nearly $12 million in donations from WTO members, with another $3.5 million promised through contribution agreements. Specifically, the fish fund can help developing countries and LDCs:

• Assess their compliance with WTO rules and obtain technical assistance where legislative or regulatory amendments may be needed to implement the agreement, including in preparation for conducting required transparency reporting to the WTO on types of subsidies used, conservation measures in place, status of fish stocks and other information necessary for evaluating the agreement’s effectiveness.
• Coordinate and communicate among national agencies responsible for fisheries and subsidies.
• Strengthen fisheries management to meet the sustainability requirements of the agreement.

The fund provides an opportunity for many developing countries to increase fisheries sustainability and improve the long-term profitability of their fishing sectors. In particular, this will benefit small-scale, artisanal fishers – a policy priority for many developing nations.

The fund, which will be managed by the WTO and partner organizations including the FAO, the World Bank Group and the International Fund for Agricultural Development, is accessible only to developing countries and LDCs that ratify the agreement.

Starting preparations to implement the deal

Countries can start preparing for implementation of the agreement including by planning how to collect, report and share information on their subsidies and the fisheries where subsidized fleets operate. Members can also start setting up the coordination mechanisms they will need to have in place among their own agencies to enable alignment with the new rules. And members can determine now how they might establish rules and procedures to ensure they don’t provide subsidies in circumstances where it’s prohibited, and identify the type of international support they will need for doing so.

With The Pew Charitable Trusts’ support, the International Institute for Sustainable Development has created a Self-Assessment Tool for the Implementation of the WTO Fisheries Subsidies Agreement for governments. This tool is designed to help governments determine what domestic policies and practices may need to change and identify gaps that might need to be filled with technical assistance and capacity-building support.

Once the agreement enters into force, nations that have ratified the agreement can apply for financial assistance through the fish fund to hire consultants to help them use the self-assessment tool, or they can self-assess and then apply for fish fund resources based on identified needs.

Members are also negotiating additional rules to strengthen the Agreement on Fisheries Subsidies – namely provisions to limit subsidies that contribute to overcapacity and overfishing. By taking steps to prepare to implement the agreement as it stands now, countries will be well positioned to make the changes required once the WTO adopts those additional rules.

Given the state of the world’s fisheries, WTO members must continue working to swiftly ratify, strengthen and prepare for the agreement’s implementation as soon as possible. The fish fund and self-assessment tool can help nations take advantage of this opportunity to improve ocean health and boost food and economic security for the hundreds of millions of people who depend on sustainable fisheries – now and into the future.

Megan Jungwiwattanaporn works on cross-campaign efforts within The Pew Charitable Trusts’ conservation work.