link to page 1 
Updated June 24, 2022
World Trade Organization Fisheries Subsidies Negotiations
On June 17, 2022, World Trade Organization (WTO)
2019, U.S. imports of fishery products totaled about 2.7
members finalized a limited agreement on long-running
million metric tons, valued at $22.2 billion. The United
negotiations aimed at curbing fisheries subsidies that lead to
States exported around 1.3 million metric tons, or $5.2
excess capacity and may contribute to overfishing (fishing
billion. The U.S. International Trade Commission estimated
at a rate that a species cannot replenish its population.), and
that about $2.4 billion (or 11%) worth of U.S. seafood
those that support illegal, unreported, and unregulated
imports were products of IUU fishing in 2019.
(IUU) fishing. Subsidies are defined as a financial
contribution made by a government or any public body that
An empirical study estimated that around $35.4 billion in
confers a benefit, and are generally considered to be trade
subsidies were provided to fisheries globally in 2018.
distorting. They provide cost advantages to subsidized
Countries high on the U.N. Human Development Index
fisheries and disadvantage those unsubsidized.
(HDI) provided about 87% of total fisheries subsidies. It is
estimated that China, the European Union (EU), and the
Negotiations began in 2001 Ministerial Conference and the
United States were the largest subsidizers (Figure 1).
negotiation mandate was renewed at the 11th Ministerial
Indonesia, Vietnam, and Morocco were the largest
Conference in 2017. The 2022 Agreement on Fisheries
subsidizing countries among low HDI countries. About
Subsidies prohibits subsidies to fisheries engaged in IUU
62.7% of global subsidies were capacity-enhancing.
fishing and fishing of already overfished stocks. However,
Beneficial subsidies, which promote sustainable fisheries
it does not address other key issues in the 2017 Ministerial
management, were roughly 29.9% of global subsidies.
mandate (i.e., subsidies contributing to overcapacity and
Ambiguous subsidies, which can be helpful or harmful,
special and differential treatment (SDT) for developing
were about 7.1%.
country members). The agreement will enter into force after
History of the Negotiations
it is ratified by two-thirds of WTO members. Members will
continue negotiations on outstanding issues in the run-up to
In the 1990s, multilateral organizations, such as the FAO,
the 13th Ministerial Conference (MC13, date to be
raised concerns about the economic and environmental
determined). Notably, the new agreement includes a sunset
impact of fisheries subsidies contributing to overcapacity
provision and will automatically terminate if members fail
and overfishing. Subsidies provide capital to fisheries to
to agree on “comprehensive disciplines” within four years
expand fishing fleets and increase capacity to fish. Some
after entry into force.
studies observed that subsidies lead to excess capacity in
fisheries, which may contribute to overfishing.
Global Fisheries Trade and Subsidies
In 2001, WTO members agreed to “clarify and improve
The United Nations’ (U.N.) Food and Agricultural
existing WTO disciplines on fisheries subsidies” in addition
Organization (FAO) estimated global total marine catches
to negotiating clarifications to the WTO Agreement on
to be about 84.4 million metric tons in 2018. The United
Subsidies and Countervailing Measures. The 2005 Hong
States was the fifth largest producer of marine capture
Kong Declaration clarified goals of the negotiations,
seafood, producing roughly 4.7 million metric tons. In
specifically calling for the prohibition of certain subsides
Figure 1. Estimated Fisheries Subsidies, 2018 (in millions of U.S. $)
Source: CRS analysis of Sumaila et al., “Updated Estimates and Analysis of Global Fisheries Subsidies,” Marine Policy, vol. 109 (November 2019).
https://crsreports.congress.gov
World Trade Organization Fisheries Subsidies Negotiations
and establishment of SDT for developing country members.
sustainable fisheries management programs and fuel tax
Lack of consensus on certain issues (e.g., SDT provisions),
relief). Some developing country members argue that
the general scope of prohibited subsidies, and the broader
sustainability exceptions would disproportionately benefit
stalemate among members that impeded progress in the
developed economies who are already large subsidizers,
Doha round of trade talks reportedly slowed down
such as the EU and the United States.
negotiations from 2010-2015.
U.S. Position
The negotiations gained momentum after countries adopted
On June 17, the U.S. Trade Representative (USTR)
the U.N. Sustainable Development Goals in 2015. Goal
commended the agreement for its provisions prohibiting
14.6 aims to, among other things, prohibit subsidies
subsidies that support the most harmful activities depleting
contributing to overcapacity, overfishing, and IUU fishing.
fish stocks, as well as “strong transparency provisions.” The
Recent Developments
USTR also committed to continuing negotiations on
outstanding issues, including pursuing enhanced
On June 17, 2022, WTO members reached an agreement to
transparency requirements with respect to forced labor. The
prohibit certain fisheries subsidies and agreed to continue
USTR previously submitted a proposal to the WTO that
negotiations on outstanding issues, including long-debated
would address the use of forced labor on fishing vessels,
disagreements on the extent of flexibilities offered in SDT
which is often linked to IUU fishing. The proposal included
provisions and the scope of exceptions to certain subsidies.
(1) recognition of the use of forced labor on fishing vessels;
Key Provisions of the Agreement
(2) rules on subsidies for fishing activities associated with
the use of forced labor; and (3) reporting requirements for
The Agreement on Fisheries Subsidies prohibits subsidies
members to notify the WTO of any vessels and operators
contributing to (1) IUU fishing, (2) already overfished
suspected of forced labor. This proposal reflects the Biden
stocks, and (3) fishing and related activities located outside
Administration’s “worker-centric” trade policy agenda.
a member or regional fisheries management organization’s
Some WTO members, such as Canada and the EU, have
jurisdiction. It establishes a voluntary funding mechanism
expressed support for addressing forced labor.
to provide technical assistance and capacity building to
developing country members and a Committee on Fisheries
With regard to SDT, the United States supports some
Subsidies to implement the agreement. Members will also
flexibilities for developing economies (including LDCs),
be required to adhere to a set of notification and
but does not support broad and permanent exceptions in the
transparency requirements. The commitments in the
fisheries agreement. U.S. trade officials and some Members
agreement are subject to the WTO dispute settlement
of Congress have raised concerns that allowing member
process.
countries to self-designate as developing economies in the
Outstanding Issues
WTO provides unfair advantages, particularly for countries
with large, more advanced economies, such as China, that
WTO members disagreed on key areas in the negotiations
may not warrant SDT flexibilities but continue to use them.
leading up to the 2022 Ministerial Conference and much of
these remain outstanding. Members agreed to continue talks
Outlook and Issues for Congress
on such issues, and the entire agreement may hinge on the
The Agreement on Fisheries Subsidies is the first new
conclusion of new disciplines within four years.
multilateral deal successfully negotiated under the WTO
since the 2013 Trade Facilitation Agreement. Though the
Special and Differential Treatment. Developing
agreement was welcomed by some environmental groups as
economies are afforded flexibilities to implementing their
a start in curbing harmful subsidies, critics argued that it did
WTO commitments through SDT under WTO agreements.
not do enough, specifically noting the absence of rules
Such flexibilities can include a longer implementation
related to overcapacity and overfishing. Some issues
period, technical assistance and capacity building,
Congress may consider before the agreement enters into
exceptions, and special provisions for least-developed
force and outstanding issues continue to be negotiated
country (LDC) members. SDT has been a major area of
include:
disagreement in the fisheries subsidies negotiations.
Members aim to address this issue by MC13. Although
Does the United States currently provide subsidies to
WTO members generally agree that developing countries
any fishing activities prohibited by the agreement? If so,
should be afforded some flexibility, some members,
does Congress need to pass legislation to bring U.S. law
including the U.S. argue that flexibilities should be more
into compliance or is executive action sufficient?
limited and targeted to the specific needs of the developing
Did the WTO demonstrate its continued relevance as an
country, and should not contain permanent exceptions. On
international forum for countries to complete new
the other hand, developing country members, such as India,
multilateral trade agreements addressing global trade
support broader SDT provisions, arguing that more
policy challenges?
flexibilities are necessary to support low income, resource
As WTO members continue to address outstanding
poor fishing industries in developing countries.
issues, should the United States continue to pursue U.S.
negotiating priorities, such as forced labor and limiting
Exceptions for Certain Subsidies. The agreement did not
SDT, or should those issues be negotiated separately?
address subsidies that contribute to overcapacity and
overfishing and exceptions for certain subsidies. Some
Liana Wong, Analyst in International Trade and Finance
WTO members advocate limiting the exceptions to
subsidies, while others say that it should be expanded to
IF11929
include other non-subsidy measures (e.g., tax incentives for
https://crsreports.congress.gov
World Trade Organization Fisheries Subsidies Negotiations
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF11929 · VERSION 3 · UPDATED