The WTO’s Fisheries Subsidies Deal: The Fate of Developing Countries

On 17th June 2022 at the WTO’s Twelfth Ministerial Conference (MC12) in Geneva, Switzerland, the global trade body reached an agreement on fisheries subsidies.?Coming after almost two decodes of negotiation the new treaty contains a set of rules prohibiting subsidies to illegal, unreported and unregulated (IUU) fishing, to the fishing of overfished stocks, and to fishing on the high seas outside the control of regional fisheries management organizations. But according to reports, members were not able to agree on a broader rule to curb subsidies that contribute to excessive fishing pressure because negotiations over the broader rule, and exceptions to it for developing countries, did not manage to find a landing ground.

According to the Director General (DG) of the apex trade organization, Dr. Ngozi Okonjo-Iweala “the ban is specifically critical for developing States, as over 22,000?tons of fish are “stolen” each year from coastal communities and that agreement emphasis the need for global solidarity to solve problems, especially those affecting global public goods such as the oceans”.

Also, in order to realize the economic potential of the developing countries, a $10?million fund was also created to provide technical assistance and improve fisheries management rules. This may cover for the failure of the agreement to address some key issues in the 2017 Ministerial mandate (especially the special and differential treatment (SDT) for developing country members).?

Special and Differential Treatment for Developing economies

Developing countries are allowed some flexibilities to the implementation of their WTO commitments via SDT under WTO agreements. Such allowances maybe a longer implementation period, technical assistance and capacity building, exceptions, and special provisions for least-developed country (LDC) members. This has been a critical point of disagreement in the fisheries subsidies negotiations.

But it is highly imperative now than ever for the developing and least developed countries (especially the coastal countries) to deploy strategies that will guarantee the sustainability of their traditional ocean activities and efforts to accelerate development of emerging industries, such as maritime transport, port activities, shipbuilding, marine biotechnology, sustainable tourism and aquaculture.

African Countries’ Preparation

However, scanning over the internet and documents available at my disposal, it is pathetic to note that not many of the developing and least developed countries are really prepared or has a strategy in place to guarantee the sustainability of their ocean economy or benefits from the WTO fisheries subsidies agreement.

Now let's zoom in to Africa, the African Union as a continental organ have got a strategy for blue economy. Apart from the continental strategy by the African Union, only few countries such as Seychelles, Mauritius and South Africa has also got some strategic plans in place for their blue economy. COMESA as a regional block has also developed a draft strategy to harness the benefits of the Blue Economy for its 21 Member States. “The opportunities to exploit in the sector are abundant and soon the continent will be an epicenter of blue economy discussions” according to Dr.?Ian Ralby, an expert in maritime law, strategy and the development of the blue economy.

P.S. Anyone with information on any other African country’s blue economy strategy should please help us with it so as to track the implementation and also as case study.

What should be done?

In my opinion it is imperative and very critical that developing countries began to put together plans, policy documents, frameworks to provide strategic direction and decision making in order to benefit from the agreement put together by the apex trade organization and to harness the potentials that the blue economy has presented to the global community

Finally, whether blue economy strategies will produce the expected outcomes is another matter as this will will require concerted effort and significant political will.