After nearly 25 years of negotiations, the World Trade Organization (WTO) finally has its first legally binding agreement to tackle government fisheries subsidies. After two-thirds of WTO members ratified the Agreement on Fisheries Subsidies, the deal has entered into force. It marks a long-overdue step toward addressing the role harmful fisheries subsidies play in overfishing.

Fisheries subsidies can cause harm by distorting markets and creating unequal competition—so-called “trade injuries.” In addition, they can cause ecological harm by increasing the capacity of fishing vessels and fleets. The result is overcapacity: too many boats chasing too few fish, which often leads to overfishing.

When WTO talks on fisheries subsidies began in 2001, fish populations were already in decline. Today, 38% of fish stocks are overfished, and a further 50% are fully exploited. That means most of the world’s fisheries are being fished at or beyond their biological limits.

For decades, government subsidies have helped industrial fishing fleets expand, often with little regard for sustainability. These subsidies have distorted access to fish and seafood, fuelled overfishing and harmed coastal communities—especially in low-income countries where fish are critical to food security and livelihoods.

This agreement is a major milestone, but it is only the beginning. Here’s what the agreement covers, why it matters, and what needs to happen next to protect ocean health and ensure an equitable ocean economy for coastal communities.

WTO members first raised the issue of harmful fisheries subsidies at the Fourth Ministerial Conference in Doha in 2001. For years, talks made little headway—until the adoption of the United Nations Sustainable Development Goals (SDGs) in 2015. 

Target 14.6 of the SDGs explicitly called on the WTO to:

“Prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated fishing and refrain from introducing new such subsidies.” 

This helped re-energize negotiations, culminating in the adoption of the subsidies agreement at the WTO’s 12th Ministerial Conference in 2022.

The agreement includes three key prohibitions targeting the worst kinds of subsidies. First, ratifying WTO members must stop subsidizing illegal, unreported, and unregulated fishing (Article 3). 

Second, they must end subsidies for vessels targeting overfished stocks unless they can demonstrate that effective management measures are in place to rebuild those stocks (Article 4). Third, subsidies for fishing on the unregulated high seas are banned (Article 5).

While these measures don’t address all subsidies that contribute to overcapacity, they target some of the most egregious forms of financial support.

Another critical part of the agreement is Article 8, which strengthens transparency and accountability. Members must now provide detailed information annually, including information on fish stocks, conservation and management measures, fleet capacity, and the names of subsidized vessels

Historically, fisheries subsidies data has been patchy and incomplete. Better data will help identify who benefits from public financial support and whether it aligns with sustainability goals.

The agreement also introduces more equitable expectations for developing and least developed countries. These members are granted an extra two years before they must implement subsidy prohibitions and, crucially, can access the WTO Fish Fund—a funding mechanism that helps countries implement the agreement through technical assistance and partnerships. 

While the agreement does not fully level the playing field, it establishes that major subsidizers must carry the greatest burden.

Despite its strengths on paper, the agreement only covers a fraction of the estimated $22 billion in harmful fisheries subsidies provided by governments each year. The most prevalent of all the harmful subsidies, fuel subsidies, remain largely untouched.

Another major limitation is that it only applies to countries that have ratified the agreement. As of now, some major subsidizers—including Indonesia and Thailand, two of the world’s top 10 subsidy providers—have yet to ratify.

In a 2021 report we wrote for ocean conservation group Oceana, we found that just 10 countries are responsible for 64% of global harmful subsidies. Even with this agreement in force, without their participation, large gaps will remain.

Another challenge is ensuring transparency and data disclosure. While the agreement includes stronger notification requirements, it lacks detailed reporting guidelines. Much of the implementation will depend on self-reporting and peer accountability between members. 

Without clear standards or enforcement mechanisms, many subsidy programmes could remain opaque or under-reported. To have real impact, the WTO must develop robust and standardized reporting frameworks.

Whether this agreement will save fish, or merely save face, will come down to how it is implemented. Success will hinge on whether WTO members hold each other accountable and whether industry, civil society, and researchers can push their governments toward genuine compliance.

Importantly, the subsidies agreement was never meant to be the end of the conversation. Its entry into force triggers a four-year countdown to negotiate the next phase. 

They must address the most damaging subsidies of all, those that fund fishing by rich foreign fleets in the waters of other nations, and those that drive overcapacity, to achieve a comprehensive agreement. These policies have the greatest potential ecological and equity impact but are the hardest to reach consensus on.

Fortunately, we are now closer to that goal. The entry into force of this agreement provides the ideal platform from which SDG Target 14.6 can be fully achieved. Putting an end to billions in fishing subsidies would restore fish stocks, support coastal communities, and improve ocean health for all. The job is not yet done.

* This article was first published in The Conversation.

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Daniel Skerritt is Affiliated Researcher, Fisheries Economics Research Unit, University of British Columbia.

U. Rashid Sumaila is Director & Professor, Fisheries Economics Research Unit, University of British Columbia.

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Synergies by TESS is a blog dedicated to promoting inclusive policy dialogue at the intersection of trade, environment, and sustainable development, drawing on perspectives from a range of experts from around the globe. The editor is Fabrice Lehmann.

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