WTO Fisheries Subsidies Deal Takes Effect, Boosting NZ Exporters

Trade and Investment Minister Todd McClay said the deal will strengthen both economic fairness and environmental protection.

New Zealand exporters are set to gain from fairer competition in global seafood markets as the World Trade Organisation's (WTO) Agreement on Fisheries Subsidies officially comes into force. The agreement follows nearly two decades of negotiations and represents a major milestone in global efforts to curb harmful subsidies that contribute to overfishing.

A Victory for Fair Trade and Sustainability

Trade and Investment Minister Todd McClay said the deal will strengthen both economic fairness and environmental protection.

"Unfair subsidies distort markets and disadvantage responsible producers. This agreement delivers on New Zealand's long-standing push for global reform, ensuring Kiwi exporters can compete on a level playing field while helping to safeguard fish stocks for the future," McClay said.

The agreement bans subsidies that directly support:

• Illegal, unreported, and unregulated (IUU) fishing

• Fishing of overfished stocks

• Unregulated high seas fishing

These restrictions are designed to protect marine ecosystems, support sustainable fisheries, and ensure that responsible producers are not undercut by countries subsidising environmentally damaging practices.

New Zealand's Role in Driving Reform

New Zealand has been at the forefront of the push for change, becoming the first WTO member in the 1990s to call for improved rules on fisheries subsidies. Successive governments have maintained this leadership, working closely with like-minded nations and Pacific partners to build consensus around the issue.

"Now we look forward to seeing the benefits, especially in the Pacific, where many of our key partners and exporters operate," McClay said.

Supporting Pacific Partners

For Pacific nations, many of which rely heavily on sustainable fisheries for income and employment, the agreement represents a major step forward in ensuring long-term resource security. It also strengthens regional efforts to combat IUU fishing, a persistent threat to economic and food security across the Pacific.

New Zealand's leadership is expected to bolster confidence among smaller economies that depend on fairer global trade rules to protect their industries.

Looking Ahead: Further Negotiations

While the current agreement marks a historic breakthrough, work is still ongoing to strengthen global fisheries rules. WTO members, including New Zealand, are continuing negotiations on additional subsidy disciplines, particularly around capacity-enhancing subsidies that contribute to overcapacity and overfishing.

"New Zealand will also continue to back efforts to conclude additional rules on fish subsidies at the WTO," McClay confirmed.

Aligning With New Zealand's Trade Ambitions

The fisheries subsidies agreement also ties into the Government's broader trade growth strategy, which aims to double the value of New Zealand's exports within the next decade.

"Stronger global rules that deliver fairer competition are an important part of that," McClay said, stressing that international agreements like this ensure New Zealand's exporters compete in markets where sustainable and responsible practices are rewarded rather than penalised.

Agreement Now in Force

The Agreement on Fisheries Subsidies entered into force after ratification by two-thirds of WTO members, with New Zealand ratifying the deal in September 2023, following its conclusion in 2022.

Its implementation is expected to reshape the global seafood trade by curbing harmful subsidies, rewarding responsible practices, and helping safeguard marine biodiversity for future generations.