20 Years of Talks Culminate in Global Fishing Agreement

World Trade Organisation’s landmark fisheries deal, the first of its kind focused on environmental protection, came into force on Monday, September 15, after more than two decades of complex negotiations. The accord establishes binding regulations that mandate governments to consider the legality and sustainability of fishing activities they subsidise.

Over 100 WTO members, including the US, the EU, and China, have accepted the agreement. It bans the most damaging forms of public subsidies for the fishing industry.

However, broader rules addressing subsidies that contribute to overcapacity and overfishing are still under negotiation.

Key Prohibitions and Exceptions

The agreement, finalised in 2022, officially took effect after being accepted by two-thirds of the WTO’s members. It explicitly prohibits subsidies for “illegal, unreported, and unregulated (IUU)” fishing and for fishing of overfished stocks.

A notable exception allows countries to continue providing these subsidies if their goal is to “reconstitute the stock to a biologically sustainable level”.

The deal also bans subsidies for unregulated high-seas fishing—areas outside the jurisdiction of coastal nations—offering protection in cases where no stock management measures exist.

According to a widely cited study, global fishing subsidies totalled $35.4 billion in 2018, with $22 billion directly contributing to increased fishing fleet capacity.

Obligations and Dispute Resolution

Member countries are now required to exercise “special care and restraint” when subsidising vessels not flying their flag or fishing for stocks with an unknown status.

They must also provide the WTO with information on the agreement’s implementation, including data on fish stock status and subsidised vessels.

The agreement allows for the use of the WTO’s dispute settlement mechanism for disagreements. However, the organisation’s appellate body remains paralysed due to the US’s refusal to appoint new judges.

Provisions for Developing Nations

The accord includes a “peace clause” that exempts subsidies granted by developing and least-developed countries (LDCs) within their own exclusive economic zones (EEZs) from the prohibitions for two years.

Additionally, countries with an annual share of the global fish catch not exceeding 0.8% are only required to submit fishing notifications to the WTO every four years, instead of every two.

A voluntarily funded support fund, which has received $18 million to date, has been established to provide these nations with technical assistance.

Future of the Agreement

The deal’s long-term future is conditional. If a second set of rules concerning overcapacity and overfishing isn’t finalised within four years of the initial agreement’s implementation, the accord will be “immediately abrogated,” unless WTO members decide otherwise.

Source: Le Mauricien