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September 16, 2021
World Trade Organization Fisheries Subsidies Negotiations
World Trade Organization (WTO) members are currently
(around 1.3 million metric tons), or $5.2 billion. The U.S.
negotiating a multilateral agreement to curb fisheries
International Trade Commission estimated that about $2.4
subsidies that lead to excess capacity, which may contribute
billion (or 11%) worth of U.S. seafood imports were
to overfishing, as well as those that support illegal,
products of IUU fishing in 2019.
unreported and unregulated (IUU) fishing. Subsidies are
defined as a financial contribution, made by a government
A study estimated that around $35.4 billion in subsidies
or any public body that confers a benefit, and are generally
were provided to fisheries globally in 2018. Countries high
considered to be trade distorting. They provide cost
on the UN Human Development Index (HDI) provided
advantages to subsidized fisheries and disadvantage
about 87% of total fisheries subsidies. It is estimated that
unsubsidized fisheries.
China, the European Union (EU), and the United States
were the largest subsidizers (Figure 1). Indonesia, Vietnam,
Negotiations began in 2001 at the Doha Ministerial
and Morocco were the largest subsidizing countries among
Conference and the mandate was renewed at the 11th
low HDI countries. About 62.7% of global subsidies were
Ministerial Conference in 2017, with a goal of concluding
capacity-enhancing. Beneficial subsidies, which promote
negotiations by 2020. WTO members missed that goal due
sustainable fisheries management, were roughly 29.9% of
to persistent disagreements on certain issues and delays
global subsidies. Ambiguous subsidies, which can be
caused by the Coronavirus Disease 2019 pandemic.
helpful or harmful, are about 7.1%.
Members hope to conclude negotiations before the 12th
History of the Negotiations
Ministerial Conference (MC12) is set to begin on
November 30, 2021. Many observers view a successful
In the 1990s, several multilateral organizations, such as the
outcome of the talks , which is the only ongoing multilateral
FAO, raised concerns about the economic and
trade negotiation, as important to preserving the WTO’s
environmental impact of fisheries subsidies contributing to
credibility and relevance as a negotiating body. Members of
overcapacity and overfishing. Subsidies provide capital to
Congress have generally supported prior U.S. negotiating
fisheries to expand fishing fleets, increase capacity to fish,
efforts to ban harmful fisheries subsidies at the WTO.
and employ greater levels of fishing effort. Some studies
observed that subsidies lead to excess capacity in fisheries,
Global Fisheries Trade and Subsidies
which may contribute to overfishing—fishing at a rate that
The United Nation’s (UN) Food and Agricultural
a species cannot replenish its population.
Organization (FAO) estimated global total marine catches
In 2001, WTO members agreed to “clarify and improve
to be about 84.4 million metric tons in 2018. The United
existing WTO disciplines on fisheries subsidies” in addition
States was the fifth largest producer of marine capture
to negotiating clarifications to the WTO Agreement on
seafood, producing roughly 4.7 million metric tons. In
Subsidies and Countervailing Measures (SCM Agreement).
2019, U.S. imports of fishery products totaled six billion
The 2005 Hong Kong Declaration clarified goals of the
pounds (about 2.7 million metric tons), valued at $22.2
negotiations, specifically calling for the prohibition of and
billion. The United States exported 2.8 billion pounds
Figure 1. Estimated Fisheries Subsidies, 2018 (in millions of U.S. $)
Source: Sumaila et al., "Updated Estimates and Analysis of Global Fisheries Subsidies," Marine Policy, vol. 109 (November 2019).
Note: Graphic created by CRS Visual Information Specialist, Mari Y. Lee.
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World Trade Organization Fisheries Subsidies Negotiations
establishment of special and differential treatment (SDT)
exceptions to subsidies, while others say that it should be
for developing country members. A first draft of rules was
expanded to include other non-subsidy measures (e.g., tax
introduced in November 2007, but lack of consensus on
incentives for sustainable fisheries management programs).
certain issues, like SDT provisions, the general scope of
Some developing country members argue that the
prohibited subsidies, and the broader stalemate among
sustainability condition would disproportionately benefit
members that impeded progress in the Doha round of trade
developed economies who are already large subsidizers ,
talks reportedly slowed down negotiations from 2010-2015.
such as the EU and the United States.
The negotiations gained momentum after countries adopted
U.S. Position in Negotiations
the UN Sustainable Development Goals in 2015. Goal 14.6
In July 2021, the U.S. Trade Representative (USTR)
aims to, among other things, prohibit subsidies contributing
commented that a final agreement should be a “meaningful
to overcapacity, overfishing, and IUU fishing. The 2017
conclusion” and that the latest negotiating text “can serve as
Ministerial Conference reaffirmed WTO members’
the basis for a Member-led, text-based negotiation,” but that
commitments to conclude the negotiations by 2020.
is does not “contain the elements required for reaching
Recent Developments
conclusion.” The USTR also expressed that the United
States supports some flexibilities for developing economies
On June 30, 2021, the chair of the WTO negotiations
(including LDCs), but does not support broad and
released a revised negotiating text, noting that it will serve
permanent exceptions in the fisheries agreement. U.S. trade
as a basis for upcoming discussions. Major provisions in the
officials and some Members of Congress have raised
draft text include prohibition of subsidies contributing to:
concerns that allowing member countries to self-designate
IUU fishing, fishing or fishing related activities regarding
as developing economies in the WTO provides unfair
overfished stock, and overcapacity and overfishing (e.g.,
advantages, particularly for countries with large, more
subsidies for building or upgrading vessels, fuel subsidies,
advanced economies, such as China, that may not warrant
price support for fish caught). The draft text also includes
SDT flexibilities but continue to use them.
SDT for developing countries and least-developed countries
(LDC), including delayed implementation of provisions and
In May 2021, reflecting the Biden Administration’s
aid for technical assistance and capacity building, and
emphasis of a “worker-centric” trade policy agenda, the
strengthened notification requirements of fisheries subsides
USTR submitted a proposal to the WTO that would address
to increase transparency on top of similar requirements
the use of forced labor on fishing vessels, which is often
under the SCM Agreement.
linked to IUU fishing. The proposal included: (1)
recognition of the use of forced labor on fishing vessels; (2)
Following the release of the revised text and the July
rules on subsidies for fishing activities associated with the
fisheries ministerial meeting, the WTO director-general
use of forced labor; and (3) reporting requirements for
stated that the negotiations will move onto text-based
member countries to notify the WTO of any vessels and
discussions and expressed hope that a final agreement could
operators suspected of using forced labor. The proposed
be reached before the MC12 in November.
language was not included in the June 30 revised text, but
Key Areas of Disagreement
some WTO members , such as Canada, have expressed
support for addressing forced labor on fishing vessels .
The fisheries subsidies negotiations continue to be beset by
key areas of disagreements. In particular, WTO members
Outlook and Issues for Congress
have long debated the extent of flexibilities offered in SDT
WTO members aim to conclude negotiations before the
provisions and the scope of exceptions to certain subsidies.
MC12, which is set for November 2021. A successful
agreement would be the first multilateral trade deal
Special and Differential Treatment. Developing
completed under the WTO since 2015. Some issues
economies are afforded flexibilities to implementing their
Congress may consider as the negotiations continue
WTO commitments through SDT under WTO agreements.
include:
Such flexibilities can include a longer implementation
period, technical assistance and capacity building,
Can the WTO achieve a meaningful agreement that
exceptions, and special provisions for LDC members. SDT
includes effective disciplines and rules to curb harmful
has been a major area of disagreement in the fisheries
fisheries subsidies and demonstrate its continued
subsidies negotiations. Although WTO members generally
relevance as an international forum for countries to
agree that developing countries should be afforded some
complete new multilateral trade agreements addressing
flexibility, some members argue that flexibilities should be
global trade policy challenges?
more limited and targeted to the specific needs of the
How much flexibility should be provided to developing
developing country, and should not contain permanent
countries in the fisheries subsidies agreement and in
exceptions. On the other hand, developing country
future WTO negotiations, and will China be considered
members, such as China, support broader SDT provisions,
a developing country in a potential agreement?
arguing that more flexibilities are necessary to support low
income, resource poor fishing industries in developing
Should a final agreement include U.S. negotiating
countries.
priorities, such as forced labor, or should those issues be
negotiated separately?
Exceptions for Certain Subsidies. The draft text includes
provisions allowing fisheries subsidies that promote the
Liana Wong, Analyst in International Trade and Finance
rebuilding of or maintaining a sustainable level of fish
IF11929
stock. Some WTO members advocate limiting the
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World Trade Organization Fisheries Subsidies Negotiations
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