In introductory remarks delivered on 8 October at the session “Towards a Trade and Environment Sustainability Agenda for the Pacific” during Trade and Environment Week at the WTO, Deputy Director-General Angela Ellard urged WTO members to formally accept the Agreement on Fisheries Subsidies and conclude negotiations on additional provisions to support the Pacific region’s sustainability goals. The session was organized by the Pacific Islands Forum Secretariat and the Secretariat of the Pacific Regional Environment Programme. The text of her remarks is below:
Thank you, and good afternoon, distinguished excellencies and to all.
I appreciate the invitation to engage with you on the pressing environmental challenges confronting the Pacific region, and how a multilateral approach can help tackle those challenges and foster sustainable solutions.
Severely affected by the triple planetary crisis of climate change, biodiversity loss, and pollution, the Pacific Islands have a unique understanding of how trade and trade policy can contribute to addressing these challenges. And that’s why I’m so pleased that this discussion is taking place at the WTO.
Trade is vital for climate adaptation and resilience, because it facilitates the development and dissemination of adaptation technologies, improves access to essential goods and services during climate shocks, and fosters synergies between climate finance and trade aid to bolster supply chains and trade-related infrastructure.
The participation and leadership of the Pacific Islands at the WTO in addressing environmental challenges is commendable, including through Fiji’s role as a co-coordinator of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP).
I encourage you to continue bringing forward your interests in the Committee on Trade and Environment, as well as in other environmental initiatives at the WTO to ensure that trade policy supports your adaptation and energy transition efforts.
Let me now turn to the issue of fisheries subsidies.
I visited the Pacific in 2022 just as two important and complementary events coincided:
There are many synergies between these two historic achievements, paving the way toward a sustainable, prosperous, and resilient Pacific region.
As the 2050 Strategy underscores, the Pacific islands countries are the custodians of nearly 20% of the earth’s surface, including vast swaths of ocean. During my visits to the Pacific, I have witnessed firsthand how the ocean is central not only to the economies of the region, but also to the core identity of its people. Therefore, it is particularly fitting that, through the 2050 Strategy, all Pacific governments have committed to collective action to improve the health of the ocean and prevent the over-exploitation of its resources.
As we know, the Western and Central Pacific Ocean is home to one of the world’s largest fisheries, supplying more than half of the world’s tuna from predominantly sustainable stocks. However, the sustainability of fishery resources in the Pacific and worldwide, is threatened by harmful subsidies, which total around USD 22 billion annually.
The WTO Agreement on Fisheries Subsidies is a decisive response to these challenges. It prohibits subsidies to vessels involved in illegal, unreported, and unregulated (IUU fishing), and to fishing in the unregulated high seas. It also restricts subsidies for activities affecting overfished stocks, unless they are implemented to rebuild the stocks to a biologically sustainable level. By enhancing transparency and enforcing these rules, the Agreement promises significant benefits for fishing communities across the region, aligning with the Blue Pacific Strategy.
However, this potential will be realized only when the Agreement enters into force, which requires ratification by 2/3 of our 166 Members. To date, we have received 83 out of the 111 instruments of acceptance, and our goal is to hit the required target by the end of the year. The process for acceptance is well under way in many WTO Members, and I strongly urge those who have not yet ratified – including in the Pacific, where fisheries are so vital – to do so as soon as possible.
I should emphasize that ratification unlocks access to the technical assistance and capacity-building from the WTO Fish Fund. We have more than USD 12 million in the bank, in addition to resources provided by the FAO and the World Bank, our partners in the Fund. This Fund will help developing and LDC Members implement the Agreement and improve their fisheries management – the Fund demonstrates the commitment to work closely with developing Members and LDCs every step of the way.
But we know our negotiating work is not done. I encourage Members to constructively engage on the ongoing negotiations on fisheries subsidies contributing to overcapacity and overfishing – Fish 2 – which, together with Fish 1, would constitute comprehensive disciplines to fully meet UN SDG 14.6. As you know, although WTO Members have not reached an agreement on these provisions yet, they did make significant progress, and we are very close. The four-year sunset clause in Fish 1, initially proposed by the Pacific region, creates a powerful incentive to conclude these negotiations quickly.
While the current text may not be ideal or perfect for all, most developing and developed Members believe that it would improve the status quo, perhaps with a few adjustments that are well socialized with the Membership.
The latest version of the new disciplines circulated by the Chair of the negotiations is a balanced approach. On one hand, it contains strong disciplines on the largest fishers and subsidizers, as well as those engaged in distant water fishing.
On the other hand, the text exempts small-scale and artisanal fishing from its disciplines, as well as least developed Members and small fishing nations. It also includes a review clause to assess the effectiveness of disciplines, with the possibility to amend the Agreement later.
Sustainable fisheries are crucial for the livelihoods of those who depend on them. The adoption and entry into force of both WTO fisheries agreements will therefore go a long way to helping Pacific nations fulfil the commitments in 2050 Strategy.
I know we can count on the Pacific and all Members for their continued deep and earnest engagement. At this point, concluding Fish 2 will require significant commitment at the highest political level, to complete negotiations on Fish 2, and to ensure the ratification and entry into force of Fish 1. And so much is at stake, for our ocean, the fish, and those whose livelihood depends on them. Whether we can finish our work is completely in Members’ – your – hands.
Thank you.