WTO Fisheries Subsidies Agreement (AFS): India Joins the Global Pact for Sustainable Fisheries

WTO Fisheries Subsidies Agreement (AFS): India Joins the Global Pact for Sustainable Fisheries

Context

On 20 July 2026, India deposited its Instrument of Acceptance for the WTO Fisheries Subsidies Agreement (AFS), becoming the 123rd WTO member to join this landmark multilateral agreement. The agreement aims to promote sustainable fisheries by eliminating harmful subsidies that contribute to overfishing and illegal fishing activities.

History of the Issue

Unsustainable fishing practices, supported by large government subsidies, have led to the depletion of global fish stocks and degradation of marine ecosystems. Recognising the need to balance international trade with environmental sustainability, WTO members adopted the Fisheries Subsidies Agreement by consensus at the 12th WTO Ministerial Conference (MC12) held in Geneva in June 2022. The agreement entered into force on 15 September 2025, after receiving acceptance from two-thirds of WTO members. It is the first WTO agreement primarily focused on environmental sustainability and the conservation of ocean resources.

Salient Features

• Legally binding multilateral agreement administered by the World Trade Organization (WTO).
• Prohibits subsidies for Illegal, Unreported and Unregulated (IUU) fishing.
• Restricts subsidies for fishing of overfished marine stocks.
• Prohibits financial support for unregulated fishing on the high seas beyond national jurisdictions.
• Applies only to marine wild capture fisheries; aquaculture and inland fisheries are excluded.
• Establishes a Committee on Fisheries Subsidies and a WTO Fisheries Fund to provide technical and financial assistance to developing and least-developed countries.

India's Stand

India supports sustainable fisheries while safeguarding the livelihoods of small-scale and traditional fishers. It has consistently argued for special and differential treatment (S&DT) for developing countries and protection of livelihood subsidies. Since India's seafood exports are largely based on aquaculture, which is outside the agreement's scope, the country's export competitiveness remains protected. The agreement also complements India's Blue Economy Policy, Pradhan Mantri Matsya Sampada Yojana (PMMSY), and SDG 14.6 commitments.

Current Status

With India's accession, 123 WTO members have accepted the agreement. India is now part of the global framework to promote responsible fisheries, conserve marine biodiversity, strengthen sustainable trade, and improve the credibility of Indian seafood exports in international markets while protecting the interests of its traditional fishing communities.

Analytical Questions

Question 1. Why is the WTO Fisheries Subsidies Agreement important for protecting marine resources?

Answer: Many countries have supported large fishing fleets through heavy subsidies. This has encouraged excessive fishing and damaged marine ecosystems. The agreement limits such harmful support and promotes responsible fishing. Healthy fish stocks ensure long-term food security, stable incomes for fishing communities and better protection of ocean biodiversity.

Question 2. Why did India support the agreement even though it places limits on fisheries subsidies?

Answer: India's fishing sector is mainly based on small and traditional fishers rather than heavily subsidised industrial fleets. The agreement protects livelihood support for developing countries while targeting harmful subsidies. Since aquaculture is excluded, India's seafood exports remain safe. India also strengthens its image as a responsible trading nation.

Question 3. How can this agreement help small-scale fishermen in developing countries?

Answer: Large industrial fleets often reduce fish availability near the coasts of developing countries. By restricting harmful subsidies for such fleets, the agreement helps conserve fish stocks. This improves long-term livelihood opportunities for traditional fishermen, supports food security and encourages sustainable use of marine resources.

Question 4. Do you think environmental protection and international trade can go together? Explain with reference to this agreement.

Answer: Yes. Economic growth should not destroy natural resources. This agreement shows that trade rules can also promote environmental protection. Sustainable fishing keeps fish stocks healthy, supports future exports and protects livelihoods. Responsible trade creates long-term economic benefits instead of short-term gains through overexploitation.

Question 5. Besides restricting harmful subsidies, what more should India do to promote sustainable fisheries?

Answer: India should strengthen scientific fish stock assessment, improve coastal monitoring and stop illegal fishing. Fishermen should receive training in sustainable fishing methods and better cold storage facilities. Expanding aquaculture, improving marine conservation and encouraging community participation will help balance economic growth with environmental protection.