Promoting Sustainable Fishing: From the Perspective of Fisheries Funding Mechanism Under the Agreement on Fisheries Subsidies – Frontiers

Report on the World Trade Organization’s Agreement on Fisheries Subsidies and its Alignment with Sustainable Development Goals

1.0 Introduction: Addressing Marine Resource Depletion through Global Policy

In response to the global depletion of marine resources, the international community has intensified its focus on sustainable fishing practices, a core component of the United Nations’ Sustainable Development Goal 14 (Life Below Water). A significant policy development in this area is the World Trade Organization’s (WTO) Agreement on Fisheries Subsidies (AFS), adopted on June 17, 2022, and effective from September 15, 2025. This report analyzes the AFS, its dedicated funding mechanism, and the associated challenges, all viewed through the lens of the Sustainable Development Goals (SDGs).

2.0 The Agreement on Fisheries Subsidies (AFS): A Direct Contribution to SDG 14

The primary objective of the AFS is to prohibit harmful fisheries subsidies that contribute to overfishing and the degradation of marine ecosystems. This directly addresses SDG Target 14.6, which calls for prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, and eliminating subsidies that contribute to illegal, unreported, and unregulated (IUU) fishing.

2.1 Challenges for Developing Nations and the Integration of Multiple SDGs

The implementation of the AFS presents considerable economic and technological challenges for developing and least developed country (LDC) Members. These nations often depend heavily on the fisheries sector for economic growth, food security, and livelihoods, which are central to achieving SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth). Recognizing this, the AFS incorporates Special and Differential Treatment (SDT) provisions to balance the pursuit of marine sustainability (SDG 14) with the right to development.

3.0 The Fisheries Funding Mechanism: Fostering Partnerships for the Goals (SDG 17)

To support developing nations in meeting their AFS obligations, Article 7 of the agreement established a Fisheries Funding Mechanism. This mechanism is designed to provide targeted technical assistance and capacity-building support, embodying the principles of SDG 17 (Partnerships for the Goals).

3.1 Purpose and Function

The fund, which is now operational and receiving contributions, aims to equip developing and LDC Members with the necessary tools and capabilities to implement the new subsidy disciplines. A well-functioning assistance system is critical for enabling these countries to build national capacity, comply with the AFS, and secure their development space, thereby creating a synergistic effect across multiple SDGs.

3.2 Operational Challenges Impeding SDG Attainment

Despite its crucial role, the Fisheries Funding Mechanism faces several potential operational challenges that could hinder its effectiveness and the achievement of related SDGs. These include:

• Unpredictable Financing: Inconsistent funding streams threaten the long-term planning and sustainability of capacity-building projects.
• Access Barriers: Administrative and technical hurdles may prevent eligible countries from accessing the funds effectively.
• Vague Allocation Procedures: A lack of clear criteria for prioritizing and allocating funds can lead to inefficiencies and inequitable distribution.
• Monitoring and Evaluation Gaps: Insufficient mechanisms for monitoring, evaluation, and learning (MEL) can limit the ability to assess impact and make necessary adjustments.
• Coordination Risks: Poor coordination among donors, recipient countries, and implementing agencies could result in duplicated efforts and wasted resources.

4.0 Conclusion and Recommendations

The WTO’s Agreement on Fisheries Subsidies is a landmark achievement for advancing SDG 14. However, its success is contingent upon the effective implementation of its support structures, particularly the Fisheries Funding Mechanism. It is essential to refine the mechanism’s operational framework to address the identified challenges. By ensuring predictable financing, streamlined access, transparent allocation, and robust monitoring, the fund can serve as a powerful tool for global partnership under SDG 17. This will empower developing nations to meet their environmental commitments without compromising their development priorities, ultimately ensuring a balanced and sustainable future for global marine resources.

Analysis of Sustainable Development Goals in the Article

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

• SDG 14: Life Below Water

  This goal is central to the article, which focuses on addressing the “widespread depletion of the world’s marine resources” and promoting “ocean sustainability” through “sustainable fishing.” The entire discussion revolves around the World Trade Organization’s (WTO) Agreement on Fisheries Subsidies (AFS), which was created specifically to protect marine ecosystems from harmful economic practices.

• SDG 17: Partnerships for the Goals

  This goal is addressed through the article’s focus on the multilateral agreement (AFS) negotiated and adopted by the WTO, a global institution. It highlights the international cooperation required to solve a global problem. Furthermore, the article details the “Fisheries Funding Mechanism” and the provision of “Special and Differential Treatment (SDT)” for developing and least developed countries (LDCs), which are key aspects of global partnerships for sustainable development, involving financial aid, technical assistance, and capacity building.

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

• Under SDG 14: Life Below Water

  1. Target 14.6: “By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated (IUU) fishing and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the World Trade Organization fisheries subsidies negotiation.”
     • Explanation: The article is entirely focused on the WTO’s “Agreement on Fisheries Subsidies (AFS),” which “aims to promote ocean sustainability by prohibiting harmful fisheries subsidies.” It also explicitly mentions that the AFS provides “Special and Differential Treatment (SDT)” for developing countries, directly mirroring the language and intent of this target.
  2. Target 14.a: “Increase scientific knowledge, develop research capacity and transfer marine technology… in order to improve ocean health and to enhance the contribution of marine biodiversity to the development of developing countries…”
     • Explanation: The article describes the establishment of a “Fisheries Funding Mechanism” by the WTO to provide “targeted technical assistance and capacity building” to developing and LDC Members. This support is intended to help them implement the new disciplines, build national capacity, and manage their fisheries sustainably, which aligns with the goal of transferring knowledge and building capacity.

• Under SDG 17: Partnerships for the Goals

  1. Target 17.9: “Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals…”
     • Explanation: The article’s discussion of the “Fisheries Funding Mechanism” is a direct example of this target in action. The mechanism’s stated purpose is to “provide developing and least developed country (LDC) Members with targeted technical assistance and capacity building for the purpose of implementing the disciplines under the Agreement.”
  2. Target 17.10: “Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization…”
     • Explanation: The article is based on a multilateral agreement, the AFS, adopted by the World Trade Organization after “rounds of hard negotiations.” This process and the resulting agreement are a clear example of the functioning of the rules-based multilateral trading system to address sustainable development challenges.

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

• Indicators for SDG 14 Targets

  1. Implied Indicator for Target 14.6: The progress in implementing the WTO Agreement on Fisheries Subsidies (AFS).
     • Explanation: The article centers on the AFS as the key instrument to prohibit harmful subsidies. Progress would be measured by the number of countries ratifying and implementing the agreement, and the subsequent reduction or elimination of prohibited subsidies. The article’s concern with implementation challenges for developing countries implies that “compliance with the fisheries subsidy disciplines” is the key metric of success. This aligns with Indicator 14.6.1 (“Progress by countries in the degree of implementation of international instruments aiming to combat illegal, unreported and unregulated fishing”).

• Indicators for SDG 17 Targets

  1. Implied Indicator for Target 17.9: The amount of funding and technical assistance disbursed through the Fisheries Funding Mechanism.
     • Explanation: The article explicitly mentions that the “Funding Mechanism has become operational and has already received donations.” An obvious way to measure progress is to track the dollar value of this financial and technical assistance committed to and received by developing and LDC members, which corresponds to Indicator 17.9.1 (“Dollar value of financial and technical assistance… committed to developing countries”). The article’s concern about “unpredictable financing” further highlights the importance of this metric.

4. Summary Table of SDGs, Targets, and Indicators

Source: frontiersin.org