Nicaragua Becomes 101st WTO Member to Accept Fisheries Subsidies Agreement

On June 2, 2025, Nicaragua became the 101st member of the World Trade Organization (WTO) to formally accept the Agreement on Fisheries Subsidies, marking a significant step toward global efforts to combat harmful fishing practices and restore marine biodiversity. The instrument of acceptance was handed over to WTO Director-General Ngozi Okonjo-Iweala by Nicaragua’s Ambassador Rosalía Bohorquez Palacios, bringing the WTO just 10 acceptances away from the threshold required for the agreement’s entry into force.

Why in News?

The formal acceptance by Nicaragua is highly significant as it pushes the total number of acceptances of the WTO’s Agreement on Fisheries Subsidies to 101 out of the required 111, signaling imminent enforcement of the landmark deal. This development brings the global community closer to banning subsidies that contribute to illegal, unreported, and unregulated (IUU) fishing, overfishing, and harmful practices on the high seas.

Background of the Agreement

• Adopted at the 12th WTO Ministerial Conference (MC12) in Geneva in June 2022.
• First WTO agreement with a strong focus on sustainability and marine resource conservation.
• It was the result of decades of negotiation to address one of the root causes of declining global fish stocks—harmful subsidies.

Aim and Objectives

• Curb harmful fisheries subsidies that contribute to overfishing and IUU fishing.
• Promote sustainable fishing and the blue economy.
• Provide technical assistance and capacity-building to developing and least-developed countries.
• Ensure fair trade practices while protecting marine biodiversity.

Key Provisions

Prohibits subsidies for,

• Illegal, unreported, and unregulated fishing (IUU).
• Fishing of overfished stocks.
• Fishing in unregulated high seas.

Creates a WTO Fish Fund to support,

• Technical and legal assistance.
• Capacity-building for implementation.

Statements and Reactions

• Ngozi Okonjo-Iweala (WTO DG): Welcomed Nicaragua’s acceptance, noting that the agreement is closer than ever to entering into force.
• Rosalía Bohorquez Palacios (Nicaragua’s Ambassador): Emphasized Nicaragua’s dedication to marine sustainability and support for multilateral trade systems.

Static and Contextual Facts

• The Agreement requires formal acceptance by two-thirds of WTO members (111) to come into force.
• The Fish Fund is expected to launch calls for proposals to aid implementation in developing economies.
• Nicaragua is bordered by the Pacific Ocean and Caribbean Sea, giving it a strategic interest in ocean governance.