WTO negotiations on fishery subsidies

Accounting for 17 % of the global average per capita intake of animal protein, fisheries products support many people's livelihoods and make a significant contribution to food security. However, more than a third of world stocks are fished at biologically unsustainable levels. Economic losses from the depletion of fish stocks are estimated at US$83 billion. A reduction in fishing capacity and effort would contribute to the recovery of stocks, yet many governments of fishing countries continue to support the sector with harmful fishery subsidies. Subsidies that directly increase fishing capacity and may lead to overfishing are estimated at about US$22 billion worldwide. Although there are no specific global rules on fisheries subsidies, they are currently governed by the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures. However, subsidy rules in this agreement are geared towards trade distortion as opposed to the adverse effects on the environment. While new fisheries subsidies disciplines have been part of WTO-level negotiations since 2001, the negotiating mandate was rewritten in 2005 with the aim of eliminating subsidies that contribute to overcapacity and overfishing, while also taking into account special and differential treatment for developing countries. Negotiations stalled in 2011, but were revived thanks to the 2015 UN sustainable development goals, whereby government leaders committed to ban harmful fisheries subsidies by 2020, including those that contribute to illegal, unreported and unregulated fishing. The negotiations have been very difficult because they bring together two very different worlds, namely fisheries management and the WTO rules system. More specifically, not all members consider certain subsidies to be equally harmful, as views and practices in fisheries management vary widely. On 24 November 2021, a draft agreement was submitted to ministers ahead of the upcoming 12th Ministerial Conference (MC12). The text includes a ban on subsidies contributing to overcapacity and overfishing, such as support for the construction of vessels and for operational costs. A number of exemptions would apply, e.g. for certain developing countries and, important for the EU, where fish stocks are exploited at biologically sustainable levels. MC12, which was set to start on 30 November 2021 and had already been postponed from 2020, was put off again because of renewed travel restrictions. New dates have yet to be set.