Why in news?
The World Trade Organization’s Agreement on Fisheries Subsidies entered into force after the required number of ratifications. It is the first WTO agreement with a primary focus on environmental sustainability.
Key provisions
- Prohibits governments from granting subsidies to illegal, unreported and unregulated (IUU) fishing activities.
- Bars subsidies for fishing of over‑exploited stocks and for unregulated fishing on the high seas.
- Mandates transparency by requiring members to notify subsidies and fisheries data.
- Establishes a “WTO Fisheries Funding Mechanism” to help developing countries adapt and build sustainable fishing capacities.
- Creates a review committee to monitor implementation and consider further disciplines.
Why is it important?
- Overfishing has depleted about a third of the world’s fish stocks. Harmful subsidies encourage fleets to catch more fish than ecosystems can replenish.
- The agreement aims to remove perverse incentives, thereby helping coastal communities and protecting livelihoods of small‑scale fishers.
- It demonstrates that multilateral trade rules can incorporate environmental objectives.
Implications for India
India provides fuel and vessel subsidies to fishermen. While small‑scale, artisanal fishers are exempt under certain conditions, there may be constraints on expanding deep‑sea fleets. India must modernise its fisheries sector, improve data collection and invest in sustainable practices to make the most of the agreement.