How Regional Fisheries Managers Can Help End Harmful Subsidies – The Pew Charitable Trusts

Report on Fisheries Subsidies and Their Impact on Sustainable Development Goals

Executive Summary

Overfishing and Illegal, Unreported, and Unregulated (IUU) fishing present a significant threat to the achievement of multiple Sustainable Development Goals (SDGs), particularly SDG 14 (Life Below Water), SDG 1 (No Poverty), and SDG 2 (Zero Hunger). Harmful government subsidies exacerbate this crisis by promoting unsustainable fishing capacity. The 2022 World Trade Organization (WTO) Agreement on Fisheries Subsidies, supported by the actions of Regional Fisheries Management Organizations (RFMOs), provides a critical framework for addressing these challenges and advancing the 2030 Agenda for Sustainable Development.

The Challenge to Sustainable Development

Impact on SDG 14: Life Below Water

The current state of global fisheries directly contravenes the objectives of SDG 14, which aims to conserve and sustainably use marine resources. According to the Food and Agriculture Organization (FAO), over one-third of global fish stocks are exploited beyond sustainable levels. This directly undermines Target 14.4, which calls for an end to overfishing and IUU fishing.

Harmful Subsidies as a Barrier to SDG Target 14.6

A primary driver of this degradation is the prevalence of harmful fisheries subsidies, an issue addressed by SDG Target 14.6. Of the $35 billion in annual government subsidies to the fishing industry, $22 billion are considered harmful. These funds artificially lower the operational costs for industrial fleets, leading to:

• Increased fishing capacity beyond sustainable levels.
• Economic viability for otherwise unprofitable fishing expeditions.
• Accelerated depletion of fish stocks.

Socio-Economic Consequences for SDG 1, SDG 2, and SDG 8

The depletion of fish stocks has severe consequences for hundreds of millions of people, threatening progress on several SDGs:

1. SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth): The economic livelihoods of small-scale, local fishers are jeopardized as industrial fleets deplete coastal fish stocks, forcing local fishers into longer, more arduous, and less profitable work.
2. SDG 2 (Zero Hunger): Global food security is threatened by the unsustainable harvesting of a critical protein source for many coastal communities.

A Global Partnership for Sustainable Oceans: The WTO Agreement

In a significant advancement for SDG 17 (Partnerships for the Goals), WTO Member States adopted the Agreement on Fisheries Subsidies in 2022. This legally binding framework is a direct response to SDG Target 14.6, establishing global rules to curb harmful subsidies that contribute to overfishing.

Core Provisions of the Agreement

The agreement mandates that Member States align subsidy allocation with sustainability principles, directly supporting the conservation goals of SDG 14. Key prohibitions include:

• Subsidies for vessels and operators engaged in IUU fishing.
• Subsidies for fishing of overfished stocks, unless measures are in place to rebuild the stock to a sustainable level.
• Subsidies for fishing in unregulated areas of the high seas.

The agreement also enhances transparency and accountability, requiring Member States to consider the status of fish stocks before granting subsidies and to carefully weigh the consequences of subsidizing reflagged vessels or fishing on unassessed stocks.

The Role of RFMOs in Implementing the 2030 Agenda

Regional Fisheries Management Organizations (RFMOs) are critical partners in operationalizing the WTO agreement and achieving SDG 14. As international bodies responsible for managing key commercial fish stocks, RFMOs provide the scientific and management foundation necessary for the agreement’s success.

Mandated Actions for SDG Compliance

The WTO agreement establishes a clear linkage between RFMO determinations and the subsidy obligations of Member States. To ensure compliance and progress on SDG 14, RFMOs must support the enforcement of the following provisions:

1. Combatting IUU Fishing: When an RFMO identifies a vessel or operator engaged in IUU fishing, WTO Member States are obligated to cease providing subsidies.
2. Managing Overfished Stocks: The agreement prohibits subsidies for fishing stocks that an RFMO has determined to be overfished, reinforcing the RFMO’s conservation measures.
3. Addressing Unassessed Stocks: RFMOs should encourage their members to avoid subsidizing fishing activities that target stocks whose conservation status is unknown, promoting a precautionary approach consistent with sustainable management.
4. Governing the High Seas: The agreement prohibits subsidies for fishing on stocks outside the jurisdiction of a relevant RFMO, reinforcing the RFMO’s management authority.

Conclusion: A Coordinated Path to Achieving the SDGs

The successful implementation of the WTO Agreement on Fisheries Subsidies is fundamental to making progress on SDG 14 and, by extension, on goals related to poverty, hunger, and economic stability. This success hinges on robust information sharing and collaboration between the WTO, its Member States, and RFMOs. By ensuring compliance with the agreement, RFMOs play an indispensable role in improving ocean health, rebuilding fish stocks, and securing a sustainable future for coastal communities worldwide.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses issues of overfishing, illegal fishing, and harmful subsidies, which directly and indirectly connect to several Sustainable Development Goals (SDGs). The primary goals addressed are:

• SDG 14: Life Below Water: This is the most central SDG to the article. The text is entirely focused on the health of marine ecosystems, the sustainability of fish populations, and the governance of marine resources. It explicitly discusses overfishing, the depletion of fish stocks, and the need to protect the ocean’s ecosystem.
• SDG 2: Zero Hunger: The article directly links the issue of overfishing to human well-being by stating that it threatens the “food security… of hundreds of millions of people.” It also highlights the struggle of small local fishers to “catch enough fish to feed their communities,” connecting the health of fish stocks to the availability of food.
• SDG 17: Partnerships for the Goals: The article heavily emphasizes the role of international cooperation and global agreements in addressing the problem. It details the “Agreement on Fisheries Subsidies” adopted by the World Trade Organization (WTO) and describes the critical collaborative role of Regional Fisheries Management Organizations (RFMOs) in implementing and enforcing these global rules.
• SDG 12: Responsible Consumption and Production: The article addresses the unsustainable exploitation of a natural resource (fish stocks). The discussion on eliminating “harmful” subsidies that “accelerate overfishing” is a key component of promoting sustainable production patterns in the fishing industry.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, several specific SDG targets can be identified:

1. Target 14.4: By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and unregulated (IUU) fishing and destructive fishing practices. The article is built around this target, highlighting that “More than one-third of fish stocks worldwide are exploited beyond sustainable levels” and discussing the need to combat “overfishing and IUU fishing.” The WTO agreement and the role of RFMOs are presented as mechanisms to achieve this regulation.
2. Target 14.6: By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to IUU fishing. This target is the core subject of the article. It quantifies the problem, stating that “of the $35 billion in subsidies… $22 billion are harmful,” and explains that the WTO “Agreement on Fisheries Subsidies” was created specifically to limit these subsidies.
3. Target 2.1: By 2030, end hunger and ensure access by all people… to safe, nutritious and sufficient food all year round. The article connects to this target by explaining that overfishing threatens the “food security and economic livelihoods of hundreds of millions of people” and hurts “small local fishers worldwide” who rely on fish stocks to “feed their communities.”
4. Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships. The article exemplifies this target by describing the partnership between the WTO, its Member States, and RFMOs. It states, “The success of the WTO agreement relies on RFMOs and other international organizations sharing information to enable transparency and compliance.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions and implies several indicators that can be used to measure progress:

• Indicator for Target 14.4 (Proportion of fish stocks within biologically sustainable levels): The article provides a direct data point for this indicator by stating, “More than one-third of fish stocks worldwide are exploited beyond sustainable levels, according to the Food and Agriculture Organization (FAO) of the United Nations.” Tracking this percentage over time would measure progress.
• Indicator for Target 14.6 (Progress in implementing instruments to combat IUU fishing): The article’s entire focus on the WTO “Agreement on Fisheries Subsidies” serves as a qualitative indicator of progress. The adoption and implementation of this legally binding framework is a direct measure. Furthermore, the article provides a quantitative baseline: the “$22 billion” in harmful subsidies. A reduction in this amount would be a clear indicator of progress.
• Implied Indicator for Target 14.6 (Elimination of subsidies for IUU fishing): The article states that the agreement “requires WTO Member States to stop paying subsidies to those vessels or operators” engaged in IUU fishing. An indicator would be the number of countries that have enacted and are enforcing this prohibition.
• Implied Indicator for Target 17.16 (Effectiveness of partnerships): The article implies that the effectiveness of the partnership between the WTO and RFMOs can be measured by the degree of information sharing and compliance. The text notes that RFMOs can provide the WTO with “detailed information on precisely what fishing is being subsidized,” including “the status of the fish stock… and catch data.” The establishment and use of such a data-sharing system would be a key indicator.

4. Table of SDGs, Targets, and Indicators

Source: pew.org