On September 15, 2025, the World Trade Organization (WTO) Agreement on Fisheries Subsidies will enter into force, marking a milestone in global efforts to tackle subsidy policies that undermine sustainable development.
Across the globe, countries offer commercial fishing subsidies that encourage harmful practices, often leading to overfishing and putting them in direct in competition with local fishing operations that aren’t subsidized. Between 20% and 37% of harmful subsidies support fishing in foreign waters or the high seas. These subsidies unequally affect low or very low-HDI nations with low management capacity and vulnerable fish stocks, especially in Africa, Oceania, South, Central America, and Caribbean. The continents of Asia, Europe and North America are net subsidy sources; providing more harmful subsidies than their ecosystems are affected by.
Overfishing is a pressing environmental threat to the world’s marine resources. According to the Food and Agriculture Organization of the United Nations (UN), the share of marine fish stocks considered to be fished beyond sustainable levels has steadily increased over the last half century. Harmful subsidies that encourage unsustainable fishing practices not only threaten biodiversity but also jeopardize the livelihoods, food security, and economic resilience of vulnerable coastal communities around the world.
The Agreement on Fisheries Subsidies, adopted at the WTO’s Twelfth Ministerial Conference (MC12) in 2022, prohibits subsidies to vessels and operators engaged in illegal, unreported, and unregulated (IUU) fishing. It also bans subsidies for fishing overexploited stocks where there are no measures in place to rebuild them, as well as subsidies for unregulated fishing on the high seas.
“We’re delighted that this landmark instrument for ocean sustainability will come into effect,” said Patricia Fuller, President and CEO of the International Institute for Sustainable Development. “Throughout the negotiations, our experts worked closely with governments to support the conclusion of the agreement, and then helped officials prepare for ratification and implementation. We warmly congratulate WTO Members on this historic achievement.”
Upon the agreement’s entry into force, WTO members that have ratified will be legally bound to put these disciplines into practice through their national laws and policies. To support this process, IISD has developed a self-assessment tool to help governments identify current gaps and assistance needs. The WTO Fish Fund will provide targeted technical assistance and capacity enhancement to developing and least developed countries to support effective implementation.
“The entry into force of the agreement is a critical milestone, clearly demonstrating the value of multilateralism, but the work does not end here,” said Alice Tipping, Director of Trade and Sustainable Development at IISD. “The focus must now shift to full implementation, robust transparency, and continued negotiations to strengthen the agreement with additional disciplines.”
