Curbing Harmful Fisheries Subsidies: A Path Toward Ocean Sustainability and Food Security

The WTO Agreement on Fisheries Subsidies aims to curb harmful subsidies contributing to overfishing, with global partnerships and the Fish Fund providing technical and financial support to help developing countries implement sustainable fisheries practices. This initiative is critical for protecting marine ecosystems and advancing global food security.

The recent report by the World Trade Organization (WTO), prepared by Sainabou Taal, Khusrav Rasulov, and Emmanuel Besong Tambi Arrey under the direction of Clarisse Morgan from the WTO Secretariat, focuses on the implementation of the WTO Agreement on Fisheries Subsidies and its role in promoting sustainable fishing practices and enhancing global food security. The report explores the contributions of bilateral and multilateral development finance, especially in supporting sustainable fisheries in developing countries and least-developed members. Adopted at the 12th Ministerial Conference in June 2022, the WTO Agreement on Fisheries Subsidies marks a significant milestone in efforts to curb harmful fisheries subsidies that contribute to illegal, unreported, and unregulated (IUU) fishing and overfishing. This agreement is the first of its kind within the WTO to place environmental sustainability at the core of its objectives and represents an essential step forward in the global drive to protect marine resources and ensure their long-term viability.

A Global Initiative to Combat Harmful Fisheries Subsidies

The agreement aims to restrict public financial support that exacerbates the depletion of marine resources, directly addressing the unsustainable exploitation of the world’s fish stocks. Harmful fisheries subsidies, estimated to amount to USD 22 billion annually, continue to be a significant factor in the decline of marine ecosystems, and the agreement is designed to help reverse this trend. However, for many developing and least-developed members of the WTO, implementing the new rules presents considerable technical and resource challenges. These countries often face financial constraints, limited infrastructure, and gaps in technical expertise, which hinder their ability to comply with the agreement’s stringent reporting requirements and disciplines on fisheries subsidies. To address these challenges, the agreement anticipates the need for technical assistance and capacity building, which is being addressed through the WTO’s Fisheries Funding Mechanism, commonly referred to as the Fish Fund.

The Fish Fund: A Lifeline for Developing Countries

The Fish Fund was established to provide targeted assistance to developing and least-developed country members in implementing the new rules set out in the agreement. With contributions totaling over CHF 12 million from various WTO members, the fund aims to assist countries in integrating sustainable fisheries practices into their subsidy policies, improving fisheries management systems, and enhancing data collection and reporting capabilities. Numerous WTO members, including Australia, Canada, the European Union, and Japan, have made significant contributions to the fund, and additional pledges have been made, signaling broad international support for the initiative. The fund’s strategic partners, including the Food and Agriculture Organization (FAO), the World Bank, and the International Fund for Agricultural Development (IFAD), play a crucial role in ensuring that the assistance provided aligns with broader international efforts to promote sustainable fisheries and ocean management.

Development Finance as a Catalyst for Sustainability

The report also highlights the importance of development finance in supporting fisheries sustainability, particularly through official development assistance (ODA). According to data from the Organisation for Economic Co-operation and Development (OECD), ODA commitments to the fisheries sector between 2010 and 2022 totaled USD 6.8 billion, with USD 5 billion disbursed over the same period. Importantly, 59% of these disbursements were aimed at making fisheries more sustainable, pointing to a growing global effort to promote responsible fisheries management practices. This focus on sustainability is critical for the successful implementation of the WTO agreement, as it helps to ensure that fishing activities do not deplete marine resources beyond their natural ability to replenish.

Fisheries and Their Role in Global Food Security

The report emphasizes the growing recognition of fisheries as a vital component of global food security. Fisheries provide a crucial source of protein and essential nutrients for millions of people, particularly in developing economies where fish accounts for a significant portion of the population’s animal protein intake. The role of fisheries in achieving Sustainable Development Goal (SDG) 2, which focuses on eradicating hunger and improving nutrition, is becoming increasingly prominent. Since 2018, ODA disbursements to fisheries projects that prioritize food security and nutrition have increased significantly. The report notes that between 2018 and 2022, ODA disbursements to fisheries projects focused on achieving SDG 2 amounted to USD 540.5 million, reflecting an average annual growth of 93%. This sharp increase underscores the growing role of fisheries in addressing global hunger and nutrition challenges.

Moving Forward: The Need for Greater International Support

However, despite these positive developments, the report acknowledges that ODA disbursements targeting sustainable fisheries remain far lower than the global subsidies that continue to fuel overfishing. With harmful fisheries subsidies exceeding sustainable fisheries ODA by a factor of 63, the report calls for continued and enhanced international efforts to support the sustainable management of fisheries. As the agreement enters into force, greater coordination between international organizations, governments, and donors will be essential to ensure that the necessary resources and technical assistance reach the countries that need them most.

The WTO Agreement on Fisheries Subsidies holds the potential to contribute to global ocean sustainability and food security significantly. However, its success will depend on the continued provision of development finance and technical assistance to support sustainable fisheries, particularly in developing and least-developed countries. The Fish Fund and international partnerships will play a crucial role in ensuring that the agreement’s provisions are effectively implemented, helping protect marine ecosystems, support livelihoods, and advance global food security.