Saturday, October 11, 2025

WTO agreement on fisheries subsidies now in effect

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The World Trade Organization’s Agreement on Fisheries Subsidies (AFS) has officially entered into force, becoming the first multilateral trade agreement that embeds environmental sustainability at its core. For Africa, this moment marks a significant opportunity to protect marine resources, safeguard livelihoods, and align fisheries governance with the continent’s wider blue economy ambitions.

The AFS is designed to curb some of the most damaging distortions in global fisheries. Specifically, it prohibits subsidies that encourage illegal, unreported, and unregulated (IUU) fishing; subsidies that support fishing of overexploited stocks without recovery measures; and subsidies that enable unregulated high-seas fishing. These provisions strike at the root of unsustainable practices that have long undermined the health of marine ecosystems.

For Africa, the stakes are especially high. IUU fishing is estimated to cost the continent up to $11.2 billion every year, stripping public revenues, weakening national economies, and depriving coastal populations of resources that could otherwise sustain communities. In the South-West Indian Ocean alone, illicit shrimp and tuna fishing is estimated to cost coastal states more than $140 million annually. By creating binding disciplines, the AFS provides governments with a stronger foundation to combat these losses and redirect value back to national priorities.

The continent’s dependence on aquatic resources gives this agreement a unique relevance. According to AUDA-NEPAD, fisheries and aquaculture contribute more than $24 billion in value added each year and support 12.3 million livelihoods across Africa. For millions of families, particularly in coastal communities, fish is not just a source of income but a staple food, providing an average of 18% of animal protein consumed on the continent.

Small-scale fisheries lie at the heart of this system. They supply more than 60% of Africa’s fish and provide over 90% of the fish consumed locally. Yet these fishers face relentless competition from heavily subsidized industrial fleets, which can afford to operate at lower costs and fish further and deeper than would otherwise be possible. The AFS directly addresses this imbalance, aiming to remove the incentives that have tilted the playing field against Africa’s local producers.

Read also: Unlocking the potential of Africa’s blue economy: Opportunities and challenges

African countries have been proactive in advancing the agreement. Out of 45 WTO members on the continent, 23 have already ratified the AFS, contributing significantly to the two-thirds global threshold required for entry into force. This level of engagement demonstrates a strong regional consensus that sustainable fisheries management is not just an environmental issue, but a development imperative.

The agreement also reflects Africa’s realities by embedding special provisions for developing countries and least-developed countries. These include flexibilities in implementation and access to technical and financial assistance through the WTO Fisheries Funding Mechanism. Supported by partners such as the FAO, IFAD, and the World Bank, the mechanism provides capacity-building resources for monitoring, enforcement, and policy reform, ensuring that no country is left behind in meeting its commitments.

Now that the agreement is in effect, the real work begins at the national level. Governments must align domestic policies with the new rules by auditing subsidy programs, creating transparent processes for identifying IUU activities, and strengthening monitoring, control, and surveillance systems. These steps will require new investments in technology, institutional capacity, and coordination across agencies.

AUDA-NEPAD is working with member states to close these gaps. Support includes policy and legal reviews, training for enforcement authorities, and guidance on accessing resources from the WTO funding mechanism. While implementation will not happen overnight, early action can yield visible benefits in the form of healthier fish stocks, stronger food security, and more competitive local fisheries.

The current agreement is only the beginning. WTO members are continuing negotiations on a second package, often referred to as “Fish 2.” This next phase will tackle the broader challenge of subsidies that contribute to overcapacity and overfishing. For Africa, the outcome of these talks will be critical. Industrial overcapacity, often driven by subsidized foreign fleets, has long disadvantaged African fishers. Effective disciplines in the next round could help level the playing field, ensuring that African waters are managed sustainably and that local communities derive greater benefit from their resources.

Beyond enforcement, the AFS is a springboard for Africa’s broader blue economy agenda. The continent has already seen aquaculture expand by more than 450% since 2000, the fastest growth rate worldwide. With improved governance, this sector could deliver inclusive economic growth, create jobs, and strengthen regional value chains in fish processing and trade. By removing harmful subsidies, the agreement helps create a more stable environment for investment, enabling African nations to capture more value from their marine resources while ensuring ecological sustainability.

The entry into force of the AFS represents more than a victory for multilateral cooperation. It is a strategic opportunity for Africa to strengthen sovereignty over its resources, secure food supplies, and accelerate the growth of its blue economy. By acting decisively on implementation, African countries can demonstrate leadership in global sustainability while directly benefiting their coastal communities.

In the years ahead, the success of the agreement will depend on translating commitments into tangible outcomes—healthier fish stocks, fairer competition, and stronger livelihoods. With the framework now in place and regional institutions mobilized to provide support, Africa is well positioned to seize this moment and ensure that its oceans become engines of sustainable and inclusive growth.

Carlton Oloo
Carlton Oloo
Carlton Oloo is a creative writer, sustainability advocate, and a developmentalist passionate about using storytelling to drive social and environmental change. With a background in theatre, film and development communication, he crafts narratives that spark climate action, amplify underserved voices, and build meaningful connections. At Africa Sustainability Matters, he merges creativity with purpose championing sustainability, development, and climate justice through powerful, people-centered storytelling.

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