July 8, 2022 — In studies that look at their global impact, fisheries subsidies that nations pay out to build up their capacity to catch fish are defined as “subsidies that encourage fishing capacity to develop to a point where resource exploitation exceeds the maximum sustainable yield, effectively resulting in the overexploitation of natural capital assets.”
China has spent billions on this type of subsidy – over $5 billion of the $35.5 billion in U.S. dollars spent on subsidies worldwide. The U.S. is also a major contributor to fisheries subsidies, but they are primarily beneficial – not capacity enhancing – subsidies, defined as “investments in the promotion of fishery resource conservation and management.” The US and Canada are unique in spending more on beneficial subsidies than capacity-enhancing subsidies.
But on June 17 the World Trade Organization (WTO) took a step toward leveling the playing field, introducing new rules intended to put a check on fisheries subsidies.
Conservation groups are divided on their appraisals of the new rules, with the Pew Charitable Trusts calling them a move in the right direction, and Oceana’s Andrew Sharpless lamenting the WTO’s work.