Building on progress in fisheries subsidies disciplines

Governments have tried for many years to negotiate rules to limit fisheries subsidies in the World Trade Organisation (WTO). Meanwhile, Parties to the Trans-Pacific Partnership (TPP) trade agreement have agreed to prohibit subsidies to particular kinds of fishing activity. Recent proposals in the WTO suggest a degree of support for a similar narrow prohibition. This paper uses evidence in the literature on the impact of subsidies on fish stocks, and from the WTO negotiations, to propose how disciplines on fisheries subsidies could be expanded, building on these first steps by the members of the TPP. The impact of subsidies on fishers' incentives and fish stocks depends on several factors, but many subsidies can tend to increase fishing capacity and effort beyond sustainable levels. Options for expanded disciplines include prioritising the prohibition of those subsidies that are most likely to be harmful to fisheries resources. An “actionable” category for other harmful subsidies could also be prioritised, as well as a set of exceptions for expenditures that are likely to be beneficial in the sense that they help to protect the environment or support poverty reduction.