WTO fisheries subsidies agreement to take effect after reaching ratification threshold

WORLD – The World Trade Organization (WTO) fisheries subsidies agreement officially came into force on Monday, September 15, following the required two-thirds ratification by members.

WTO Director-General Ngozi Okonjo-Iweala confirmed the milestone at a meeting in Geneva, citing recent approvals from Brazil, Kenya, Vietnam, and Tonga as the decisive submissions.

She said the agreement demonstrates that countries can cooperate multilaterally to address global challenges despite ongoing strains in the international trading system.

Adopted in 2022, the accord targets harmful government subsidies valued at about US$22 billion annually that contribute to the depletion of global fish stocks.

It specifically prohibits financial support for illegal fishing, the capture of overexploited species, and activities in unregulated high seas zones.

The measure aims to preserve marine resources while protecting the livelihoods of millions of people who rely on fisheries worldwide.

Implications for Africa

For Africa, where fish is a key source of nutrition and income, the agreement presents both advantages and potential difficulties.

Most fishing on the continent is small-scale and receives minimal public funding, unlike heavily subsidised industrial fleets from other regions.

Yet, African waters are among the hardest hit by overfishing and illegal practices, often carried out by foreign vessels that benefit from state aid.

The African Union estimates that such activities cost the continent approximately US$11.2 billion annually.

Research from NGO Oceana lists China, Japan, Korea, Russia, the United States, Thailand, Taiwan, Spain, Indonesia, and Norway among the biggest providers of harmful fisheries subsidies.

The European Union as a bloc is also regularly cited for maintaining subsidy systems that help industrial fleets operate off the African coast.

By cutting off financial support for vessels engaged in these activities, the WTO agreement is expected to ease some of the pressure on African waters.

However, the rules also mean African countries may have to adjust even the limited support they provide locally, particularly when stocks are officially labelled as overfished.

Another requirement is improved data collection and reporting, a demand that may be difficult for nations with weak scientific and administrative systems to meet.

So far, only 23 African states have ratified the agreement, reflecting uncertainty across the continent about how the rules will affect national fisheries policies.

To help countries implement the new measures, a dedicated fund worth over US$18 million has been established, with the majority of beneficiaries expected to be located in Africa.

A second round of negotiations is still pending, which will focus on subsidies that contribute to increased fishing capacity, an issue central to tackling resource depletion and competition from foreign fleets.

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