Time for the United States to Lead on Both the WTO and the Environment

Trade ministers from the World Trade Organization’s (WTO) 164 members are in Geneva this week in the hopes of reviving the struggling institution. The WTO’s highest-level meeting—the Ministerial Conference—has been delayed for two years, but delegates have been working around the clock to keep the momentum going. Nowhere is this more apparent than in negotiations to curtail fisheries subsidies that deplete global fish stocks. While environmental issues are a top priority for the Biden administration, on the fisheries talks, U.S. leadership has been lacking even though these negotiations advance U.S. objectives for a more sustainable and healthier ocean. With a deal within reach, it’s time for the United States to ramp up efforts to get these talks across the finish line. 

In November 2021, negotiators began discussions on a draft text that would establish rules in three areas: a prohibition on subsidies for vessels or operators that engage in illegal, unreported, and unregulated (IUU) fishing; a prohibition on subsidies for fishing of overfished stocks; and disciplines on subsidies that contribute to overcapacity and overfishing.  

The Food and Agriculture Organization of the United Nations estimates that the proportion of fish stocks at biologically sustainable levels has decreased from 90 percent to 65.8 percent from 1974 to 2017. To put it differently, over one-third of current fish stocks are fished at biologically unsustainable levels. This is a problem when more than three billion people worldwide rely on fish for 20 percent of their average per capita consumption of animal protein. Most of these people are in developing countries. Furthermore, 90 percent of subsidies that contribute to overcapacity go toward large-scale fisheries operations, which makes it harder for smaller-scale and subsistence fishing operations to compete and make a living. 

Government subsidies are a major source of this problem and threaten to permanently endanger the health of our oceans and their vibrant ecosystem. The top five subsidizers make up 58 percent of all global fisheries subsidies, and include China, the European Union, the United States, South Korea, and Japan. The most recent estimates put total government subsidies at $35 billion annually, or approximately 30 to 40 percent of the value of all fish landed by marine vessels worldwide. Fuel subsidies make up the largest part of these subsidies, roughly 22 percent. Fuel subsidies are particularly harmful because they make it cheaper for vessels to spend more time in the water, and to venture far from their coastal waters and into the high seas.  

The most recent draft text of the WTO’s fisheries subsidies talks strikes a balance between the varying concerns of WTO members, but maintains high-standard and ambitious commitments for all—with some exceptions for least developed countries (LDCs) and countries that account for less than 0.7 percent of global marine capture production. The text also addresses concerns the United States has raised about forced labor on fishing vessels and could significantly contribute to improving transparency in this area.  

Of the three areas under negotiation, reining in subsidies that contribute to overcapacity and overfishing will have the largest impact on the long-term sustainability of our oceans and support broader environmental goals. Overfishing reduces the diversity of fish stocks and harms the marine ecosystem. It also contributes to habitat loss due to damage from fishing equipment and pollution from vessels. One fishing method—bottom trawling—contributes to annual carbon emissions in line with the aviation industry. More sustainable fishing practices can help reduce that.  

This is imperative because a healthy ocean with sustainable fish stocks can also help mitigate climate change. The ocean serves as an important carbon sink, absorbing one-third of all carbon emissions produced annually, but its ability to do so could diminish over time. Curtailing unsustainable fishing practices can help the ocean continue to play this critical role by reducing emissions and limiting the negative impact on the marine environment.  

In 2021, President Biden issued an executive order that identified supporting biodiversity in fisheries and ensuring their resilience to climate change as important goals for U.S. national security and foreign policy. Achieving this goal is possible, but it will require the administration to step up and lead efforts at the WTO on fisheries talks this week. Without U.S. leadership to strike compromises on the few remaining political holdups, the deal may fall apart at the eleventh hour. 

The United States stepped back from its traditional leadership role at the WTO during the Trump years, and the Biden administration has been slow to reassert U.S. presence. This is a mistake, but it’s not too late to change course. As the Ministerial Conference gets underway this week, the Biden administration has a unique opportunity to rally U.S. trading partners toward a positive outcome on fisheries negotiations that will also serve to advance critical American national security goals. Ending harmful fisheries subsidies is not just a win for the ocean and the people that depend on it, but also a victory for our country and our planet.