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WTO fishing subsidies deal takes effect, Africa faces mixed impacts

WTO fishing subsidies deal takes effect, Africa faces mixed impacts
Tuesday, 16 September 2025 07:28

• WTO fishing subsidies deal takes effect after two-thirds ratification
• Africa could benefit as illegal, subsidized fleets strain its waters
• Only 23 African states have ratified, fund set up to aid compliance

The World Trade Organization’s (WTO) agreement on fishing subsidies officially entered into force on Monday, September 15. During a meeting in Geneva, WTO Director-General Ngozi Okonjo-Iweala announced that the two-thirds threshold of members required for ratification had been reached, thanks to recent approvals by Brazil, Kenya, Vietnam, and Tonga.

“At a time when the international trading system faces profound challenges, the Agreement on Fisheries Subsidies sends a powerful signal that WTO members can work together in a spirit of cooperation and shared responsibility to deliver solutions to global challenges,” Okonjo-Iweala said. She added that the entry into force of the accord shows that many of today’s biggest challenges are best addressed at the multilateral level.

Adopted in 2022, the deal targets about $22 billion in harmful subsidies that fuel the depletion of marine resources each year. It bans public support for illegal fishing, the capture of overexploited stocks, and activities in unregulated high seas. The goal is to protect global fish stocks and preserve the livelihoods of hundreds of millions of people who depend on fishing.

Implications for Africa

For Africa, where fishing is vital for food security and jobs, the agreement could be a positive step. The sector is dominated by small-scale fishing with little state support, unlike other regions where industrial fleets receive heavy subsidies. But African waters are among the hardest hit by overfishing and illegal fishing, often carried out by foreign vessels that benefit from large subsidies. According to the African Union, illegal fishing costs the continent at least $11.2 billion annually.

A report by NGO Oceana highlights that countries such as China, Japan, South Korea, Russia, the United States, Thailand, Taiwan, Spain, Indonesia, and Norway are among the largest providers of harmful fishing subsidies worldwide. The European Union as a bloc is also often cited. These subsidies allow big industrial fleets to cut costs and fish off African coasts, competing directly with poorly supported local fishermen.

By preventing governments from funding vessels engaged in such practices, the agreement should ease pressure on African waters. However, some African countries may need to review the limited subsidies they provide if certain stocks are officially classified as overexploited. The deal also requires new commitments on data collection and transparency, which could be difficult for countries with limited scientific and administrative capacity.

So far, only 23 African countries have ratified the deal, showing the lack of a continental consensus. Many states remain cautious, concerned about the constraints it could impose on their fishing policies or their already modest support schemes.

To help the transition, a fund with more than $18 million pledged has been set up to support developing and least developed countries, most of which are in Africa, in implementing the agreement. But this reform is only a first step: a second phase of negotiations will tackle subsidies that increase fishing capacity, aiming to go further in addressing overexploitation and unfair competition from foreign fleets.

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