Introduction to the WTO Fisheries Subsidy Agreement
The World Trade Organization (WTO) Fisheries Subsidy Agreement has entered into force starting Monday, without Mexico’s participation. This agreement aims to prohibit illegal, unreported, and unregulated (IUU) fishing subsidies and is the first WTO agreement to come into effect since 2017, focusing on environmental sustainability.
Key Provisions of the Agreement
- Prohibition of government fishing subsidies for IUU practices
- Ban on subsidies for non-regulated high seas fishing
- Prohibition of subsidies for the most vulnerable fish stocks
- Regulations addressing flag of convenience practices
- Extensive transparency and notification provisions for overseeing the agreement’s implementation
WTO Director-General’s Statement
During her address to WTO members, Director-General Ngozi Okonjo-Iweala emphasized the significance of collaboration and shared responsibility among WTO members to tackle global challenges. She stated, “At a time when the international trade system faces profound challenges, the Fisheries Subsidy Agreement sends a strong signal that WTO members can work together cooperatively to find solutions to global issues.”
Current State of Global Fisheries
According to the WTO, 35.5% of global fish stocks were overexploited in 2021, compared to 10% in 1974. Annual global marine fishing subsidies amount to approximately $35,000 million USD, with around $22,000 million USD being detrimental and contributing to the depletion of marine reserves.
Call for Wider Acceptance
With 111 WTO members accepting the agreement’s norms, Director-General Okonjo-Iweala and other interested parties, such as the European Union, urge remaining WTO members—especially major fishing nations—to accept the agreement sooner rather than later to secure additional benefits.
Mexico’s Absence and Global Subsidy Providers
Mexico has not publicly stated its reasons for declining to sign this agreement, though it is known that the agreement affects some of the subsidies Mexico provides to its fishing sector. According to a 2019 Marine Policy study, the top five global fisheries subsidy providers are China, the European Union, the United States, South Korea, and Japan. However, not all their subsidies fall under the WTO’s agreement scope.
Key Questions and Answers
- What is the WTO Fisheries Subsidy Agreement? It’s an international trade agreement aimed at ending illegal, unreported, and unregulated fishing practices by prohibiting related subsidies.
- When did this agreement come into force? The agreement entered into force on the specified date, without Mexico’s participation.
- What are the key provisions of this agreement? The agreement includes prohibiting government fishing subsidies for IUU practices, banning subsidies for non-regulated high seas fishing, and addressing flag of convenience practices. It also emphasizes transparency and notification provisions.
- Why is Mexico not part of this agreement? Mexico has not publicly disclosed its reasons for declining to sign the agreement, though it is known that the agreement affects some of the subsidies Mexico provides to its fishing sector.
- What percentage of global fish stocks were overexploited in 2021? Approximately 35.5% of global fish stocks were overexploited in 2021, according to the WTO.
