Nepal Ratifies WTO Fisheries Subsidies Pact, Just Three Acceptances Away from Enforcement

Welcoming Nepal’s action, Director-General Okonjo-Iweala underscored the urgency of curbing destructive subsidies.

 

The World Trade Organization (WTO) moved a step closer to bringing its landmark Agreement on Fisheries Subsidies into force after Nepal formally deposited its instrument of acceptance on 18 August. The handover took place at WTO headquarters in Geneva, where WTO Director-General Ngozi Okonjo-Iweala received the document from Nepal’s Ambassador to the WTO, Ram Prasad Subedi.

With Nepal’s acceptance, the total number of WTO members ratifying the Agreement has risen to 108, leaving only three more needed to reach the threshold of two-thirds of the 166 members required for the pact to take effect.

A Landmark Step Toward Sustainable Oceans

Welcoming Nepal’s action, Director-General Okonjo-Iweala underscored the urgency of curbing destructive subsidies. “Only through collective action can we restore the health of our oceans – and curbing harmful fisheries subsidies is an important step to this end. I am deeply grateful to Nepal for its leadership as a landlocked least-developed country. With Nepal's ratification, we are even closer to crossing the finish line in bringing the landmark Agreement on Fisheries Subsidies into force. Only three more acceptances to go!” she said.

Ambassador Subedi highlighted Nepal’s commitment to sustainability despite its geography. “Nepal is very pleased to deposit its instrument of acceptance of the WTO Agreement on Fisheries Subsidies today, reaffirming our commitment to a rules-based multilateral trading system. As a landlocked country, we nonetheless share with other WTO members a responsibility to ensure the sustainable use of marine resources. We believe that healthy marine ecosystems are vital for food security, environmental sustainability and the livelihoods of millions of people around the world,” he noted.

What the Agreement Covers

The Agreement on Fisheries Subsidies, adopted by ministers at the WTO’s 12th Ministerial Conference (MC12) in Geneva in June 2022, establishes the first-ever binding multilateral rules to curb subsidies that contribute to overfishing and depletion of global fish stocks.

The agreement:

• Prohibits subsidies for illegal, unreported, and unregulated (IUU) fishing.

• Bans subsidies for fishing activities targeting overfished stocks.

• Restricts subsidies for fishing on the unregulated high seas.

This is a major step toward addressing the estimated $35 billion in annual fisheries subsidies worldwide, many of which incentivize unsustainable practices.

Support for Developing Countries and LDCs

Recognizing the diverse capacities of WTO members, ministers also established a dedicated funding mechanism – the Fisheries Subsidies Fund (often referred to as the “Fish Fund”) – to provide technical assistance and capacity-building support. This ensures developing countries and least-developed countries (LDCs) can effectively implement their obligations under the Agreement.

In June 2025, the Fish Fund launched its first Call for Proposals, inviting eligible members to apply for project grants designed to help them align national fisheries policies with the new WTO disciplines. Applications are open until 9 October 2025 through the WTO Fish Fund portal.

Next Steps in Negotiations

While the entry into force of the Agreement would represent a historic breakthrough, WTO members agreed at MC12 to continue negotiations on unresolved issues. These additional provisions aim to expand the scope of subsidy disciplines and further strengthen global rules against practices that endanger the sustainability of marine resources.

A Global Milestone Within Reach

With only three more ratifications required, the WTO is on the verge of implementing a binding global treaty that could significantly alter the future of fisheries management and ocean governance. Once in force, the Agreement will not only enhance environmental sustainability but also reinforce the WTO’s credibility in tackling pressing global challenges through multilateral cooperation.