In June 2022, governments around the world took a big step forward in protecting the world’s ocean by adopting the World Trade Organization’s (WTO’s) Agreement on Fisheries Subsidies, known in WTO parlance as “Fish 1.” The deal establishes binding global rules that, for the first time, require governments to consider the legality and sustainability of the fishing activities they subsidize.
However, the WTO’s work to curtail harmful fisheries subsidies is not finished. Two-thirds of the organization’s 166 members must ratify Fish 1 for it to enter into force. As of March 2025, 94 of the required 111 members had done so. Trade ministers also agreed in 2022 to continue negotiations on outstanding additional rules—called Fish 2—to regulate subsidies that incentivize overfishing and overcapacity. These discussions are yet to conclude. Although Fish 1 includes rules intended to limit the provision of subsidies in specific situations that trigger immediate concerns around the legality or sustainability of the fishing activity that is being subsidized, they leave unaddressed the wider contribution of subsidies to overfishing.
Broader rules, like those that would be established under Fish 2, would require governments to phase out the subsidies that drive excessive capacity of fishing fleets and propel fishing beyond what is sustainable. These harmful subsidies artificially lower fuel, vessel construction, and other operational and capital costs, enabling fleets to go farther out to sea for longer periods of time and catch more fish than is sustainable. Many of these fleets would not be viable without government subsidies.
According to the United Nations Food and Agriculture Organization’s 2024 State of World Fisheries and Aquaculture report, the percentage of fish stocks being unsustainably fished rose from 35.4% in 2019 to nearly 38% in 2021, the most recent year for which reliable data are available.
Governments still provide fishing fleets with USD 22 billion each year in subsidies that encourage overfishing. Subsidies primarily go toward industrial fleets (about 80% of the USD 35 billion in global subsidies), while only 19% goes to small-scale fishers. Scientists around the world support the completion of Fish 1 and the additional rules of Fish 2. Before Fish 1 was adopted, nearly 300 scientists signed a letter in the journal Science calling for the completion of the agreement. And last year, more than 300 scientists signed a letter calling for the completion of Fish 2. Further, the Stop Funding Overfishing Coalition, a group of 180 civil society organizations supporting limits to harmful fisheries subsidies, has issued a statement calling for the swift completion of Fish 2.
From Fish 1 to Fish 2: The importance of a comprehensive agreement
Marine ecosystems are essential to global biodiversity, providing food, livelihoods, and climate regulation. However, only a healthy ocean can provide these benefits, and overfishing severely undermines ocean health and resilience. That’s why Fish 1 is designed to help course-correct for the long term. The agreement disallows subsidies in situations where they are most dangerous for sustainability. Specifically, Fish 1 prohibits the provision of subsidies when (a) illegal, unreported, and unregulated fishing has been identified, (b) a fish stock has been assessed as overfished, and no fisheries management measures are implemented to rebuild the stock to healthy levels, and (c) fishing targets unregulated stocks on the high seas—that is, outside the competence of any relevant regional fisheries management organization or arrangement. In addition, Fish 1 provides a foundation for increasing data transparency, enforcing accountability, and introducing the groundwork for long-overdue discipline into fisheries subsidies practices.
However, as noted above, adopting Fish 1 will not address the capacity- and effort-enhancing subsidies that cause economic distortions that deplete marine resources by lowering the fixed costs of productive capital and the variable costs of production itself. As a result, broader rules are needed to phase out the subsidies that incentivize excessive capacity of fishing fleets and unsustainable levels of fishing beyond the more targeted prohibitions of Fish 1.
Adopting and implementing a Fish 2 agreement that includes a broad prohibition on all subsidies that contribute to overcapacity and overfishing would give WTO members an opportunity to make a targeted yet crucial contribution to ending the global overfishing challenge. On the other hand, continued delays in its adoption risk undermining the important progress that has already been made through negotiations. The recent Fish 2 draft agreement texts demonstrate a possible balance, including exemptions for well-managed fisheries and allowances for developing countries to ease implementation. They showcase the political will of WTO members and reflect the compromises that could be found after years of complex and difficult negotiations.
Distant-water fishing—a practice where countries fish beyond their territories—further illustrates why the WTO needs to adopt Fish 2. Although Fish 1 prohibits governments from subsidizing fishing in the unregulated high seas, they can still support the exploitation of resources in other countries’ waters. In 2018, five economies alone—China, the European Union, Japan, South Korea, and Chinese Taipei—together spent an estimated USD 1.5 billion in harmful subsidies on distant-water fishing.
The good news is that substantial progress has been made toward the conclusion of the new Fish 2 rules over the last 2 years—and this progress must continue. By the end of last year, the Chair of the negotiations circulated a new draft text that garnered widespread support but failed to secure unanimous approval, thus preventing the conclusion of negotiations. India, in particular, raised objections to various elements of the draft Fish 2 text and has circulated detailed papers outlining its concerns, preventing members from reaching the consensus required to adopt the text.
A Delicate Situation
The protracted nature of the Fish 2 negotiations has been a rollercoaster for many participants and observers alike as members have inched closer to consensus. In the meantime, the status quo continues to harm ocean health and the communities that rely on sustainable fish stocks for food and livelihoods.
WTO members have secured hard-won compromises in their work to meet the agreed mandate to establish a comprehensive framework to curtail harmful fisheries subsidies.
The draft agreement represents a significant advancement over the current situation, in which subsidized overfishing also harms small-scale fishers and the most vulnerable communities dependent on healthy fish stocks for their livelihoods and nutrition. To that end, the agreement calls for establishing a general prohibition on capacity-enhancing subsidies that are harmful and contribute to overfishing unless credible management measures are in place. It also imposes greater responsibility and accountability on major subsidizers while offering flexibility to those who contribute less to the global overfishing crisis.
These elements of the draft must not be lost as negotiations continue. Given the major ecological impacts of distant-water fishing and the transboundary effects of high-seas fisheries, it is also crucial to maintain a specific discipline on subsidies that drive fishing in areas beyond national jurisdiction.
Finalizing Fish 1 and Fish 2 will be important to accomplish other multilateral goals. The Global Biodiversity Framework, in which nations pledged to phase out and reform USD 500 billion annually in harmful subsidies by 2030, adds pressure to advance the WTO discussions. A positive first step toward that goal would be cutting the estimated USD 22 billion governments provide each year in harmful fisheries subsidies. Completing and implementing both Fish 1 and Fish 2 would be key steps toward reallocating resources to protect ocean ecosystems and support fishing communities more effectively. As the year progresses, it will be important to maintain the momentum toward these twin goals.
United Nations Ocean Conference Presents a Range of Opportunities
One opportunity to keep fisheries subsidies on the global radar is the third United Nations Ocean Conference (UNOC3), scheduled to take place in Nice, France, in June. This meeting offers a global stage to elevate ocean conservation and assess the progress of the Sustainable Development Goals (SDGs), particularly SDG Target 14, which focuses on conservation and sustainable use of the ocean. Target 14.6 calls for ending subsidies that contribute to overfishing and sets a deadline of 2020 for the conclusion of the WTO negotiations. We are now 5 years overdue.
UNOC3 provides an opportunity to galvanize global momentum and foster high-level commitments, including a commitment to finalize the Agreement on Fisheries Subsidies. It is a moment for global leaders and WTO members to demonstrate urgently needed leadership in addressing the overfishing crisis and accelerating collective action. The entry into force of Fish 1 at Nice would showcase tangible progress and set the tone for addressing outstanding issues in the ongoing Fish 2 negotiations.
What’s more, UNOC3 provides the opportunity to reinforce the interconnectedness of ocean health and human well-being. WTO members, civil society, and anyone interested in ocean health should leverage the conference’s high-profile platform to emphasize the urgency of implementing Fish 1 and getting Fish 2 over the finish line as key steps to help reverse the degradation of marine ecosystems.
WTO disciplines on fisheries subsidies are not mere trade issues; they are fundamentally about the long-term sustainability of fish populations and ecosystems on which billions of people depend. With so much on the line, WTO members must act decisively to adopt the additional provisions that contribute to achieving the SDGs at the earliest possible opportunity. Doing so would also greatly enhance the credibility and relevance of the WTO as a forum for addressing global challenges and promoting multilateral cooperation.
With UNOC3 approaching, this is the time for the global community to reaffirm its commitment to curtail harmful fisheries subsidies, protect the progress that has already been achieved, and, crucially, accelerate action. The time to finish this marathon is now.