Written by: Cornelia E Nauen, President of Mundus Maris
After more than 20 years of foot dragging negotiations, the first Agreement to limit harmful fisheries subsidies has entered into force on 15 September 2025, thanks to meeting the threshold of 111 ratifications or formal letters of acceptance. The text had been adopted by the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) in Geneva in 2022. It is the first WTO deal explicitly addressing a serious environmental concern and thus opens a new chapter in trade relations between the 166 WTO members.
Right from the beginning, it was clear that this first step needed to be followed by several others to harness all the desired economic and environmental benefits in a socially equitable manner. The estimated USD 22 billion of annual harmful subsidies that go overwhelmingly to industrial fisheries have financed overcapacity and overfishing. The overcapacity has also massively favored poor working conditions of fish workers on industrial vessels, often trafficked or in bonded labor. Likewise, overfishing has had huge implications on the livelihoods of small-scale fishers and fishworkers. The Stop Funding Overfishing Coalition, with help from researchers, foundations and concerned citizens, has supported the negotiation process for many years and is quite active in harnessing the wider consensus for implementation.
A ‘WTO Fish Fund’ has now been set up as a part of the agreement to support the implementation of the Agreement. Access to the fund is already open to WTO members which have deposited their instrument of ratification.
Unpacking the legalities: What are the key disciplines of the Fish 1 Agreement?
The Fish 1 Treaty covers only marine capture fisheries and its activities at sea. It has three main disciplines banning subsidies to:
According to Art. 3 of the Agreement, the determination of IUU fishing can be made by a coastal WTO member affected by IUU fishing in its waters, by the flag state of the IUU vessel, or by a regional fisheries management organization with competence over the waters where the infringement has taken place. Evidence must be presented to ensure the fairness of the determination. The duration of the prohibition is supposed to reflect the seriousness of the infraction and whether it has been repetitive. Developing countries obtain a two-year grace period for any infractions of their vessels in their own waters. This can not be challenged by other WTO members.
Art. 4 covers the second prohibition and concerns subsidies for vessels fishing an already overfished stock, i.e. which already has seen its biomass diminish significantly and is in need of protection to recover. This status needs to be recognized either by the coastal member or the responsible RFMO on the basis of the best available scientific evidence. Some flexibility is introduced by allowing some subsidies if they serve to rebuild the stock or if management measures are already implemented for that purpose. A similar grace period of two years as in Art. 3 is applied for subsidies while recovering stocks of developing countries in their own waters.
Art. 5 groups together additional measures under the label ‘other subsidies’. It covers situations where there is no collective management responsibility, e.g. through a RFMO. In addition, WTO members commit to exercise caution in two types of situation, namely
In other words, consideration of possible negative impacts is warranted, especially when available scientific information is weak or unavailable, and the risk of overfishing is high.
The Agreement also contains some specific notification and information obligations for the fisheries in question that go beyond the subsidy notifications under general WTO rules. There are also provisions for monitoring and compliance.
More business to be finished for significant improvements on the water
To the deep regret of many WTO members and organizations working towards an end of harmful fisheries subsidies, in June 2022 at MC13, governments were unable to achieve unanimous agreement on more sweeping prohibitions for subsidizing overcapacity and accept stricter rules for the types of banned subsidies. A step-wise approach was agreed to rescue the consensus on disciplines covered under Fish 1 while continuing negotiations for a more ambitious Fish 2 Agreement until the Ministerial Conference. This should bring about a more significant change of practices on the water.
Since then, Governments and the WTO secretariat, led by Dr. Ngozi Okonjo-Iweala, and supported by the Stop Funding Overfishing Coalition, have been working hard towards an agreement at the forthcoming MC14. It is scheduled to take place in Cameroon from 26-29 March 2026.
A sunset clause in Fish 1 requires the Fish 2 Agreement to enter into force within four years after the start of Fish 1. If this were not achievable, Fish 1 will also be terminated unless WTO members agree to keep it.
As Fish 1 takes effect and governments push toward a stronger Fish 2, the real test now lies in translating hard-won rules into meaningful change on the water—so that healthy oceans, fair work and sustainable fisheries become the global norm rather than the exception.
Written by: Cornelia E Nauen, President of Mundus Maris.
This is a guest blog and may not necessarily represent the views of other RISE UP network members or RISE UP as a whole. It is only through open dialogue and a diversity of ideas that we will arrive at the solutions necessary to restore Ocean health.
Resources:
A New WTO Agreement to Curb Harmful Fisheries Subsidies by Stop Funding Overfishing.
The Stop Funding Overfishing Coalition is starting the next campaign cycle in Q4 with celebration of the Fish 1 Agreement and at the same time pushing for a liberating break-through for Fish 2 in March next year. All Rise Up members are cordially invited to participate actively. The link for the social media kit for Q4 is available for your use.
On 6 November RISE UP, CAOPA (African Federation of Professional Organisations of Artisanal Fisheries), CFFA (the Coalition for Fair Fisheries Arrangements) and the Stop Funding Overfishing Coalition for a global webinar on “Strengthening Small-Scale Fisheries Engagement in WTO Fisheries Subsidy Agreement Implementation”. This session served as an information-sharing platform to build a shared understanding among small-scale fisheries (SSF) leaders, organizations, policymakers and partners on the WTO Agreement on Fisheries Subsidies. Watch the recording.
CAOPA blog: Following on from the Webinar, CAOPA release their article, voicing the perspective of African fishers: WTO Fisheries Agreement: Opportunity or mirage for African coastal communities?
