WTO Fisheries Subsidies Agreement Takes Effect, Aims to Curb Overfishing

A long-sought World Trade Organization agreement aimed at reducing overfishing took effect Monday, Sept. 15, 2025, requiring member countries to curb some subsidies that encourage practices blamed for depleting fish stocks and setting up mechanisms to help poorer nations implement the rules.

The WTO Agreement on Fisheries Subsidies formally entered into force after Brazil, Kenya, Tonga and Vietnam deposited instruments of acceptance, bringing the total number of accepting members to 112 and clearing the two-thirds threshold among the organization's 166 members. The Geneva-based trade body said the pact — championed by WTO Director-General Ngozi Okonjo-Iweala — is its first agreement focused on the environment and represents the first broad, binding multilateral deal on ocean sustainability.

Under the portion of the deal that has taken effect, countries must restrict subsidies that support illegal, unreported and unregulated fishing as well as subsidies that contribute to the continued fishing of overfished stocks. The agreement does not yet include a finalized package of rules targeting subsidies that create overcapacity in large-scale fleets, such as government support for building fishing vessels and other measures that expand fleets' ability to catch fish.

Advocates and analysts said the first phase could place meaningful limits on some of the roughly $22 billion in annual subsidies that encourage excessive fishing, while creating a “fish fund” to help developing countries comply with and implement the new rules. The Pew Charitable Trusts described the fund as a key element to enable lower-income nations to transition to sustainable fishing practices without undermining food security and livelihoods.

“Without fish, it’s game over for the hundreds of millions of people who depend on the ocean,” said Rashid Sumaila, a member of the board of Oceana and head of the Fisheries Economics Research Unit at the University of British Columbia. He warned that the first phase "won’t stop the billions in subsidies that fuel overfishing and overcapacity," and said it should be seen as a foundation that needs to be built upon. Oceana has documented decades-long declines in fish populations and estimates that about 38% of assessed global stocks are overfished.

Economists and fisheries experts emphasize the importance of the unfinished second part of the agreement, which would address subsidies that contribute to overcapacity — including support for vessel construction or modernization. Overcapacity can lower the per-unit cost of fishing operations, making it economically attractive to fish at larger scales and accelerating pressure on already stressed stocks, experts say.

China, the United States and the European Union's 27 member states are among the major economies that have accepted the agreement. India and Indonesia have remained notable holdouts. WTO officials and conservationists said momentum from the latest round of approvals may help persuade other countries to ratify the remaining elements of the deal and to approve measures addressing overcapacity.

The agreement's backers contend it will create an enforceable, multilateral framework that can curb the market distortions created by government subsidies and provide greater legal clarity for monitoring and enforcement. Detractors and some industry representatives have warned that restrictions could harm employment and food supplies in certain coastal communities if not paired with adequate support and transition measures.

The WTO said the next phase will require additional negotiation and further national approvals before coming into force. For now, the enacted provisions mark a step toward international cooperation on ocean governance at a moment when policymakers, scientists and advocacy groups say the health of marine ecosystems is increasingly threatened by overfishing, climate change and pollution.

Implementation will depend on how countries incorporate the pact's terms into domestic law and how the new fund and monitoring mechanisms are set up. Officials at the WTO and environmental groups said attention will now turn to translating the agreement's commitments into practice and to completing the outstanding work on subsidies that drive overcapacity in large-scale fishing.