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TWN
Info Service on WTO and Trade Issues (Sep25/11) Geneva, 17 Sep (D. Ravi Kanth) — The World Trade Organization Director-General and several members on 15 September celebrated the entry into force of the partial Agreement on Fisheries Subsidies, known informally as “Fish 1”, which establishes disciplines on subsidies contributing to illegal, unreported, and unregulated (IUU) fishing and subsidies regarding overfished stocks. However, the future of the second phase of the agreement, or “Fish 2”, which targets subsidies contributing to overcapacity and overfishing (OC&OF), remains deeply uncertain, according to sources familiar with the development. Without “Fish 2”, which addresses the core drivers of global fish stock depletion, “Fish 1” lacks sufficient enforcement power, said a trade envoy speaking on a background basis. At a specially convened General Council meeting on 15 September, WTO Director-General Ms. Ngozi Okonjo- Iweala announced that Brazil, Kenya, Viet Nam, and Tonga had submitted their instruments of acceptance of “Fish 1”. Two additional countries also announced at the meeting that they would deposit their instruments of acceptance “rapidly.” The DG informed members that she is working toward achieving full ratification of “Fish 1” by the time of the WTO’s 14th Ministerial Conference (MC14) – scheduled to be held in Yaounde, Cameroon in March 2026 – while simultaneously advancing broader institutional reforms at the same meeting, according to attendees. She later stated: “At a time when the international trading system faces profound challenges, the Agreement on Fisheries Subsidies sends a powerful signal that WTO members can work together in a spirit of cooperation and shared responsibility to deliver solutions to global challenges.” However, it is unclear why the DG – and the official WTO press release – consistently referred to the agreement simply as the “Fish Agreement,” which some diplomats consider misleading, given the existence of the pending “Fish 2” component, said one trade envoy speaking anonymously. “The entry into force of this Agreement stands as a reminder that many of the biggest challenges we face are more effectively addressed at the multilateral level. People and nations need a multilateralism that delivers – which is why today is so reassuring,” the DG said. At the meeting, Ms. Okonjo-Iweala signed the official depositary notification of the Agreement’s entry into force and handed it to General Council Chair Ambassador Saqer Abdullah Almoqbel of Saudi Arabia, formally integrating the Agreement into the WTO legal framework. Ambassador Almoqbel remarked: “This Agreement is a testament to our shared vision for sustainable global fisheries. Acceptance of the Protocol has demanded not just the engagement of our Ambassadors and delegates here in Geneva. It has also involved genuine political will and careful coordination in capitals. It is thanks to our collective resolve and commitment that we witness its entry into force today.” The GC chair also announced that Mali and Oman have ratified the Agreement and will deposit their instruments of acceptance “in the very near future.” Meanwhile, the DG is scheduled to travel to New York next week to attend a United Nations High-Level Meeting where she is expected to promote the Agreement, according to informed sources. As previously reported in the SUNS, legal experts and trade diplomats have warned that “Fish 1” is likely to have minimal binding effect unless “Fish 2” is swiftly concluded. “Fish 2,” which aims to establish disciplines on subsidies contributing to overcapacity and overfishing, has so far failed to secure consensus due to sharp disagreements over what some members describe as “asymmetrical” disciplines proposed in the draft text, according to sources. “Fish 1” remains legally binding until a “comprehensive” agreement – encompassing both “Fish 1” and “Fish 2” – is adopted within four years of the entry into force of “Fish 1”. If “Fish 2” is not concluded by that deadline, “Fish 1” will be automatically terminated, according to a legal analyst from a member country speaking on a background basis. The automatic termination provision is explicitly stated in Article 12 of the Agreement on Fisheries Subsidies, adopted on 17 June 2022, under the sub-heading “Termination of Agreement if Comprehensive Disciplines Are Not Adopted”. Article 12 states: “If comprehensive disciplines are not adopted within four years of the entry into force of this Agreement, and unless otherwise decided by the General Council, this Agreement shall stand immediately terminated.” “Fish 1” remains legally binding as a partial outcome only until the four-year deadline expires, said another trade envoy, who requested anonymity. “After that point, Article 12 triggers automatic termination – unless Members reach consensus through the General Council to extend or amend the mandate.” Efforts are reportedly underway – potentially this month or early next month – to convene a special General Council meeting to either extend or amend the current mandate, the envoy added. “Crucially,” the envoy clarified, “the mere expiry of the “Fish 2” negotiation deadline does not immediately terminate “Fish 1”. Termination occurs only after the full four-year period – unless Members adopt further disciplines or explicitly agree to preserve or revise “Fish 1″.” “In short,” the envoy concluded, “inaction leads to “Fish 1″ lapsing – not an extension by default.” There are also significant doubts as to whether “Fish 1” comprehensively addresses the root causes of IUU fishing and stock depletion. According to a former African trade official, “Fish 1” covers only the most urgent cases: subsidies contributing to IUU fishing; fishing of overfished stocks without rebuilding measures; and unregulated high-seas fishing. “Importantly,” the official noted, “Fish 1 does not comprehensively cover the broader range of capacity- enhancing subsidies – such as those for fuel, vessel construction, or operating losses – which are the primary drivers of overcapacity and stock depletion. These were intended to be addressed under Fish 2 and remain entirely unregulated unless new disciplines are agreed upon.” COLLAPSE OF “FISH 2” TALKS Negotiations for “Fish 2” – aimed at establishing disciplines on subsidies contributing to overcapacity and overfishing (OC&OF) – effectively collapsed earlier this year. On 14 July 2025, India and the United States, among several other members, opposed the chair’s draft text during informal sessions, preventing consensus ahead of MC14. Faced with irreconcilable differences, the chair of the “Fish 2” negotiations, Ambassador Einar Gunnarsson of Iceland, announced that he would step down before the summer break (in August) – a move that deepened concerns over the prospects of concluding “Fish 2” by MC14. +
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