Effective enforcement of first phase of World Trade Organization agreement restricting fishing subsidies, now in action after a quarter-century
In a significant move towards ocean sustainability, the World Trade Organization (WTO) has adopted a treaty known as Fish One, aimed at banning harmful fisheries 'subsidies'. Adopted in June 2022, the treaty seeks to prevent governments from steering an estimated $400 billion into practices linked to overfishing since the turn of the century.
Fish One targets the ban on government 'subsidies' for overfished stocks and Illegal, Unreported, and Unregulated (IUU) 'fishing'. The treaty text prohibits any 'subsidies' for 'fishing' in areas of the high seas outside states' exclusive economic zones and regional fisheries management organizations' jurisdictions.
The WTO has set up the Fish Fund to help less developed nations comply with Fish One and build the capacity necessary for intensive monitoring and reporting. The fund, which seeks $20 million, has already received donations and pledges from 17 member states amounting to more than $18 million. Rich countries are expected to contribute to the fund to make it effective.
Developing nations can submit proposals by Oct. 9 for the first round of funding disbursement. However, it remains unclear who might succeed Ambassador Einar Gunnarsson of Iceland as the chair of the fisheries 'subsidies' negotiating group, as no further meetings to discuss the quagmired second half of the agreement are scheduled.
The treaty prohibits 'subsidies' for IUU 'fishing', with member states and regional fisheries management organizations determining whether an incident has occurred. Unfortunately, small-scale fishers, who make up at least 40% of the catch worldwide, are inadvertently caught in the definition of IUU 'fishing' due to a lack of registration mechanisms in poorer countries. This issue has been raised by Ranja Sengupta, who argues that small-scale fishers are treated at par with large-scale 'fishing' that is actually illegal and 'fishing' unsustainably.
Harmful 'subsidies', most often for fuel and 'fishing' gear, make it possible to engage in 'fishing' that would otherwise be unprofitable, enabling unsustainable catches and degrading marine ecosystems. The top five spenders on harmful fisheries 'subsidies' are China, the EU, the U.S., South Korea, and Japan.
Fish One bans 'subsidies' for fishers targeting overfished stocks, with the status of a fish stock to be determined by either the member state or the relevant regional fisheries management organization. Fisheries 'subsidies' excluded by the agreement are those that cause significant distortions, such as 'subsidies' linked to overfishing or harmful 'fishing' practices; small 'subsidies' ('De-minimis') below certain thresholds are generally allowed but more substantial fisheries 'subsidies' that impact competition or sustainability negatively are excluded.
As more than one-third of the world's fish stocks are already overfished, according to the U.N. Food and Agriculture Organization, the adoption of Fish One comes as a much-needed step towards ensuring the health and sustainability of our oceans. However, with Fish One having a sunset clause giving members just four short years to agree on Fish Two, the race is on to secure a lasting commitment to ocean sustainability.
