WTO Agreement on Fisheries Subsidies

Syllabus: GS3/Economy

Context

• Recently, India deposited its Instrument of Acceptance of the WTO Agreement on Fisheries Subsidies, becoming the 123rd member to join the Agreement.

About WTO Agreement on Fisheries Subsidies

• It was adopted by consensus at the 12th WTO Ministerial Conference (MC12) held in Geneva in June 2022.
• It entered into force on 15 September 2025 after receiving acceptance from two-thirds of WTO members.
• It is the first WTO multilateral agreement with an environmental sustainability objective.
• Objectives:
  • To eliminate subsidies that encourage Illegal, Unreported and Unregulated (IUU) fishing.
  • To discourage subsidies contributing to the overfishing of depleted fish stocks.
  • For the sustainable use and long-term conservation of marine resources.
  • To establish a rules-based global fisheries governance framework.
• Scope of Agreement: The Agreement covers marine wild capture fisheries and fishing-related activities conducted at sea.
  • It excludes aquaculture and inland fisheries.

Why is India’s Acceptance Significant?

• Safeguarding Small-Scale Fishers: India’s fisheries sector is dominated by traditional and artisanal fishers, unlike several developed countries that operate large distant-water industrial fleets.
  • The Agreement sets up a more equitable international fisheries regime.
  • It examines harmful subsidies that promote industrial scale fishing and supports the protection of livelihoods that depend on marine resources.
• Enhanced Sustainable Fisheries: India’s approval is in line with its broader Blue Economy and SDG-14 (Life Below Water) commitments.
  • The Agreement promotes responsible fishing practices, conservation of marine biodiversity and sustainable use of fish stocks.
• Boost to India’s Seafood Exports: Global seafood markets are demanding more and more sustainable sourcing, traceability and environment-friendly production practices.
  • India’s accession is likely to enhance its credibility as a responsible seafood exporter, improve access to premium international markets and increase the confidence of importing countries.
• The agreement is unlikely to have an adverse impact on India’s export competitiveness as India’s seafood exports are mainly aquaculture based.

Present Fisheries Management System in India

• Sustainable Harnessing of Fisheries in the EEZ Rules, 2025: It provides for fishing in India’s Exclusive Economic Zone (EEZ) and promotes sustainable harvesting practices.
• Guidelines for Sustainable Harnessing of Fisheries in the High Seas (2025): It regulates the functioning of vessels flying the Indian flag in international waters, and promotes responsible fishing.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): It aims at capacity building, infrastructure development, sustainable fisheries, fisheries value chains and welfare of fishers.
• These measures ensure marine conservation and maintain sufficient policy space for traditional and small-scale fishers.

Benefits for India

• Economic: Increased market access; improved export reputation; and continued competitiveness of prawn exports.
• Environmental: Decreased pressure on marine ecosystems; conservation of fish stocks; and improved marine governance.
• Social: Livelihoods, support to coastal communities, equitable resource use.
• Strategic: Supports India’s commitment to a rules-based multilateral trading system; and shows leadership in sustainable ocean governance.

Challenges Ahead

• Effective monitoring of Illegal, Unreported and Unregulated (IUU) fishing.
• Enhanced surveillance in India’s EEZ.
• Balancing conservation and livelihood concerns.
• Ensuring sufficient support to small fishers during implementation.
• Addressing outstanding negotiations on broader fisheries subsidies under the WTO framework.

Source: PIB