WTO Fisheries Subsidy Ban Takes Effect — What It Means for Tonga
The global fight against overfishing reached a milestone this week as the World Trade Organisation’s (WTO) landmark Agreement on Fisheries Subsidies officially came into force.
The deal, first adopted in 2022, became binding on Monday after Kenya, Brazil, Tonga, and Vietnam formally ratified it, bringing the total approvals to 112—just over the two-thirds threshold needed from the WTO’s 166 members.
This marks the WTO’s first-ever environmental agreement, obliging governments to cut subsidies that encourage illegal fishing and the exploitation of waters already classified as overfished.
Why It Matters Globally
Fishing subsidies—worth more than US$22 billion a year—have long been criticized for fuelling unsustainable practices. By artificially lowering costs, these subsidies encourage fleets to stay longer at sea, build more vessels, and fish in depleted waters.
The new WTO rules target three main areas:
Illegal, unreported, and unregulated fishing (IUU) – subsidies for such activities must end.
Overfished stocks – no subsidies are allowed for fishing in waters already scientifically classified as depleted.
Future restrictions – a second phase, still under negotiation, aims to cut subsidies that fund fleet expansion and shipbuilding.
Major players—including China, the European Union, and the United States—have joined. However, India and Indonesia remain outside, signalling difficult negotiations ahead for the second phase.
According to Pew Charitable Trusts, the agreement gives “fish stocks around the world a chance to recover, benefitting local fishers who depend on a healthy ocean.”
Why It Matters for Small Nations Like Tonga
For small island states such as Tonga, this agreement carries both opportunities and challenges:
Protecting Local Fishers
Tonga’s economy and food security rely heavily on small-scale, artisanal fishing. The ban on harmful subsidies—often used by large industrial fleets from wealthier nations—levels the playing field. Local fishers will face less competition from subsidized foreign vessels encroaching on Pacific waters.
Safeguarding Ocean Health
Over 38% of the world’s fish stocks are already overfished. For Pacific nations whose identity, culture, and diets are tied to the ocean, restoring balance in fish populations is essential. Healthy fish stocks support both livelihoods and cultural traditions.
Funding for Transition
The agreement establishes a special fund to support developing countries in adjusting to these new rules. Tonga could benefit from capacity-building, better monitoring of its Exclusive Economic Zone (EEZ), and investments in sustainable fisheries management.
Challenges in Enforcement
While the rules are global, enforcement is national. Tonga must strengthen its own monitoring systems and maritime surveillance—tasks that require resources and regional cooperation. Without this, illegal and subsidized fishing could still slip through.
Understanding the Bigger Picture
This WTO agreement will not, by itself, stop overfishing. But it sets a powerful precedent: nations are now legally bound to remove the financial incentives that fuel the crisis.
For small nations like Tonga, it sends two important messages:
The international community recognizes that protecting oceans is a shared responsibility.
Small island states, by ratifying early, can punch above their weight in shaping global environmental rules.
The next stage—cutting subsidies for fleet expansion—will be crucial. If successful, it will reduce the number of industrial vessels targeting the Pacific, allowing stocks to recover and giving communities like Tonga a stronger chance to manage their fisheries sustainably.
In plain terms for the public: This deal means the big fishing nations can no longer pour billions into keeping giant fleets in the ocean, especially when fish are already running out. For Tonga, it means fairer conditions for local fishers, healthier oceans for future generations, and access to new funding to strengthen our own fisheries management.
By Melino Maka
