Fisheries subsidies
Fisheries make a key contribution to global food security and the ocean economy. Well-designed subsidies and other government support can help ensure the health of fish stocks and ecosystems, increase fish stock productivity, and build resilience in the fisheries sector. However, poorly targeted subsidies can encourage unsustainable fishing. The OECD analyses fisheries subsidies and government support using its Fisheries Support Estimate (FSE) database.
Key messages
In June 2022, after more than 20 years of negotiations, members of the World Trade Organization (WTO) agreed to prohibit some of the most harmful types of fisheries subsidies – including subsidies that benefit illegal, unreported and unregulated (IUU) fishing. The challenge now is for each country to put in place the mechanisms to cut support to IUU fishing effectively.
It is important that governments only grant subsidies to vessels flagged to their country and that they deny support to and reclaim payments from those engaging in IUU fishing. Improving information sharing among governments and with regional fisheries management organisations to ensure those involved in IUU fishing cannot slip the net is also key. Finally, governments must look to implement the provisions of the Port State Measures Agreement to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing.
Ensuring that support to fisheries does not undermine the health of fish stocks is key to achieving socio-economic objectives and a sustainable ocean. Policies that encourage unsustainable fishing are also detrimental to society and the environment more generally as they can undermine global food security, damage fish resources and ecosystems, and increase greenhouse gas emissions.
Countries should examine their fisheries’ support policy mix and identify any policies that might encourage excess fishing capacity, over-fishing, and illegal, unreported and unregulated (IUU) fishing in the absence of effective fisheries management. Where possible, governments should re-purpose spending away from support that directly reduces fishing costs or increases fishing benefits – notably support for fuel, vessels, and access to infrastructure – and invest more in sustainable fisheries management and enforcement.
Context
The Fisheries Support Estimate (FSE) database is a rich source of information on government support policies and fisheries subsidies
Better policy decisions depend on good data. Since 2010, the OECD’s Fisheries Support Estimate (FSE) database has collected information on government support to capture fisheries, as well as payments made by the fishing sector to public finances. Covering 41 OECD countries and other large fishing nations (which together account for 69% of global capture fisheries production by volume), it allows policy makers and others to see how policies have evolved over time and compare their countries with others.
Fisheries support derives from a range of policies, which vary both over time and across countries. For example, in 2020-22, 49% of support in OECD countries was granted through management, monitoring, control and surveillance, while, in other fishing nations covered by the FSE, this type of support represented only 8% of government spending. Over the same period, support to fisheries amounted to USD 5 722 per fisher in OECD countries and USD 283 per fisher in other fishing nations.
Identifying support policies that risk damaging fisheries
If support policies make fishing more profitable, and fisheries are not effectively regulated, monitored, and controlled, there is a risk support encourages unsustainable and illegal fishing, and ends up damaging fish stocks.
The OECD has developed a tool to help governments assess the risk that their support policies may present to fish stock health. This matrix classifies types of fisheries support based on the level of risk they may pose to fishery sustainability and outlines the factors that can mitigate or magnify that risk: the quality of management of the recipient fisheries; the health of the fish stocks they target; and the conditions to be eligible for support.
The tool can be used by policy makers to reform their policy mix towards less risk either by moving away from the riskier policies or by improving fisheries management and enforcement, and better targeting support to well-managed sustainable fisheries.
