Reducing Harmful Fisheries Subsidies

Subsidies can help supplement income for fishers or lower costs to promote fishing by industrial and small-scale operators. But subsidies often promote unsustainable fishing, namely when the payments allow fishers to travel farther, stay at sea longer or have greater capacity than they would have otherwise. In fact, a 2018 study in the journal Science Advances showed that without current government subsidies, more than half of high seas fisheries wouldn’t be profitable.

Today, one third of the world’s assessed fisheries are being pushed beyond their biological limits. Further, a separate study found that over half of fisheries subsidies across the globe could incentivize overfishing in the absence of effective management. Governments across the globe pay about $22 billion a year in damaging types of fisheries subsidies, primarily to industrial fishers, to offset costs such as fuel, gear and vessel construction.

In June 2022, after 21 years of on-and-off discussions and negotiations, members of the World Trade Organization (WTO) adopted a fisheries subsidies agreement. While this is a historic step towards tackling overfishing, countries need to ratify the agreement swiftly for these reforms to take effect, and for members to fulfil their commitment to address outstanding issues related to overfishing and overcapacity.

The Pew Charitable Trusts is working with WTO members, scientists and other stakeholders to advocate for urgent ratification and implementation of the agreement, as well as to support continued negotiations on outstanding issues to substantially reduce those subsidies that are harmful to fisheries.

Stemming the flow of harmful fisheries subsidies would reduce pressure on fish stocks, improve ocean health and protect future livelihoods in coastal communities.