WTO Agreement on Fisheries Subsidies

Why in News?

India recently deposited its Instrument of Acceptance of the World Trade Organization (WTO) Agreement on Fisheries Subsidies (AFS) on 20 July 2026, thereby becoming a Party to the Agreement. India became the 123rd WTO Member to formally accept the Agreement. The move reflects India's commitment to sustainable fisheries management while safeguarding marine resources, food security and the livelihoods of coastal fishing communities.

The Agreement was adopted by consensus at the 12th WTO Ministerial Conference (MC12) in Geneva in June 2022 and entered into force on 15 September 2025, after the required acceptance by two-thirds of WTO Members. It is significant as the first multilateral WTO agreement with environmental sustainability at its core.

About the WTO Agreement on Fisheries Subsidies

Fisheries subsidies refer to government support provided to the fishing sector, which may include assistance related to fuel, vessels, equipment or other fishing activities. While subsidies can support fishers and contribute to food security, harmful subsidies can encourage excessive fishing capacity and contribute to the depletion of marine fish stocks.

The WTO Fisheries Subsidies Agreement seeks to address this problem by establishing binding rules against some of the most harmful forms of fisheries subsidies. It focuses on marine wild capture fishing and fishing-related activities at sea. Importantly, aquaculture and inland fisheries are outside its scope.

The Agreement prohibits subsidies that support illegal, unreported and unregulated (IUU) fishing and fishing of overfished stocks. By restricting such government support, it seeks to reduce incentives for unsustainable fishing and contribute to the conservation of marine ecosystems.

Significance for Developing Countries and Small-Scale Fishers

A major significance of the Agreement is its potential to create a more equitable global fisheries regime. For years, heavily subsidised industrial fishing fleets, particularly large distant-water fishing fleets, have had greater capacity to operate across international waters. Such subsidies can contribute to overfishing and place pressure on marine resources that are also important for developing countries and coastal communities.

The Agreement therefore seeks to discipline harmful subsidies while supporting the long-term sustainability of fisheries. This has particular relevance for traditional and small-scale fishers, whose livelihoods and food security depend directly on healthy marine ecosystems. India has emphasised that sustainable fisheries management must go hand in hand with protecting the interests of its fishing communities.

The WTO has also established the WTO Fish Fund to assist developing and least-developed economies in implementing the Agreement. The Fund is intended to support activities such as legal and policy reforms, institutional strengthening, fisheries management and capacity building.

India and the Fisheries Subsidies Agreement

India's acceptance is important because fisheries are closely linked with coastal livelihoods, food security and seafood exports. By joining the Agreement, India has strengthened its participation in global efforts to promote sustainable fisheries while retaining the policy space needed to support its fishing communities.

The issue also has a broader WTO dimension. At the 14th WTO Ministerial Conference (MC14) in Yaoundé in March 2026, members agreed to continue negotiations on fisheries subsidies with the objective of developing further disciplines envisaged under Article 12 of the Agreement.

For India, the challenge will be to balance international commitments on sustainable fisheries with the developmental needs of small-scale and traditional fishers. Effective implementation, therefore, requires better fisheries management, scientific assessment of fish stocks and adequate support for vulnerable fishing communities.

Conclusion

The WTO Agreement on Fisheries Subsidies represents an important shift in the global trade regime by linking trade rules with environmental sustainability and marine conservation. India's acceptance strengthens its engagement with the multilateral trading system and signals support for responsible fisheries management.

At the same time, the Agreement's effectiveness will depend on ensuring that restrictions on harmful subsidies do not disproportionately affect developing countries and small-scale fishers. A balanced approach that combines ocean conservation, sustainable fishing, food security and livelihood protection will be essential for achieving the Agreement's broader objectives.