The Arctic Ocean and the WTO Fisheries Subsidies Agreement

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Ships in the port of Longyearbyen, Svalbard. Photo: Ekaterina Uryupova

In September 2025, the World Trade Organization’s Agreement between 86 members, representing two thirds of the WTO, ratified the Fisheries Subsidies Agreement. The agreement was adopted at the WTO’s twelfth Ministerial Conference on June 17, 2022. It paves the way for the responsible use of global fish stocks and prohibits illegal, unreported and unregulated fishing, for instance, in waters outside the jurisdiction of regional fisheries management organizations (RFMOs) or by vessels not flying flags. What does this mean for the Arctic?

How Fisheries Subsidies Work in general?

Fisheries subsidies (as a financial support) are provided by governments and they can be such types of support as fuel subsidies, low-interest loans, and tax breaks, that lower the cost of fishing. It creates opportunities for fleets to work longer periods, including time at sea. In fact, if it is not managed effectively, it may create such obstacles as overexploitation, additional pressure on low biomass or understudied fish stocks, etc. However, the management of the fishing activities can be still effective on a local or national level, or at high seas with collective management arrangements.¹⁾Irschlinger T. (2025). Fisheries Subsidies and the WTO: How far have we come? International Institute for Sustainable Development, 25 March 2025. https://www.iisd.org/articles/policy-analysis/wto-fisheries-subsidies. Accessed on 1 May 2026

Legal basis for fishing activities globally and in the Arctic Ocean

The Arctic serves as a central, shared body of water connecting and affecting the surrounding Arctic States. However, the legal basis for fishing activities here still has room for improvement.²⁾Uryupova E. (2021). Why do we need a shared pan-Arctic fisheries governance complex? The Arctic Institute, 27 April 2021. https://www.thearcticinstitute.org/need-shared-pan-arctic-fisheries-governance-complex/. Accessed on 2 May 2026 As of now, the international cooperation is based on the following agreements:

• All maritime activities in the World Ocean are based on the international legal framework originating from the United Nations Conventions on the Law of the Sea (UNCLOS), which was adopted in 1982. This document covers the territorial sea (12 nautical miles), exclusive economic zones – EEZ (200 nautical miles), continental shelves (beyond 200 nautical miles), and high seas. Every Arctic state manages activities with respect to maritime boundaries and jurisdiction in the Arctic Ocean.³⁾Gavrilov V., McDorman T.L., Schofield C. “Canada and the Russian Federation: Maritime Boundaries and Jurisdiction in the Arctic Ocean” Arctic Review on Law and Politics, Vol. 13, 2022, pp. 219–231. http://dx.doi.org/10.23865/arctic.v13.3233
• The UN Fish Stocks Agreement (The Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea) is focused on the straddling and highly migratory fish stocks within the framework of the UNCLOS. Regional Fisheries Management Organizations are taking responsibility in the Atlantic and Pacific sectors to ensure the cooperation between nations.⁴⁾UN FAO. Illegal, Unreported and Unregulated (IUU) fishing. https://www.fao.org/iuu-fishing/international-framework/un-fish-stocks-agreement/en/. Accessed on 3 May 2026
• The Central Arctic Ocean Fisheries Agreement (CAOFA) provides great opportunities for cooperative governance of the Arctic, including Arctic and non-Arctic states. This document establishes a grounds for the regulation of fisheries in the high seas of the Central Arctic Ocean (CAO), including a temporary moratorium on unregulated commercial fishing. The agreement’s precautionary nature seems to be an advantage for planning fishing activities in adjacent areas, as well as to prevent any negative impacts to commercially significant fish species in the Central Arctic and adjacent seas.⁵⁾The Arctic Council (2021). An introduction to: the international agreement to prevent unregulated fishing in the high seas of the central Arctic Ocean. 25 June 2021. https://arctic-council.org/news/introduction-to-international-agreement-to-prevent-unregulated-fishing-in-the-high-seas-of-the-central-arctic-ocean/. Accessed on 4 May 2026

What is the new WTO Fisheries Subsidies Agreement?

Recently, in addition to above-mentioned agreements, the World Trade Organization has announced that the Agreement on Fisheries Subsidies has entered into force after two-thirds of WTO members formally accepted proposed cooperation in the fisheries sector. The agreement was adopted in 2022, at a time when global fish stocks were already in visible decline.⁶⁾McBride O. (2021). ICES advises a sharp reduction in Arctic cod and haddock quotas. The Fishing Daily, 20 June 2021. https://thefishingdaily.com/featured-news/ices-advises-a-sharp-reduction-in-arctic-cod-and-haddock-quotas/#:~:text=Northeast%20Arctic%20cod,good%20condition%20and%20harvested%20sustainably. Accessed on 5 May 2026; Uryupova E. (2023). Climate change as a factor impacting current and future commercial fisheries in the Arctic region, The Arctic Institute, 24 October 2023. https://www.thearcticinstitute.org/climate-change-factor-impacting-current-future-commercial-fisheries-arctic-region/. Accessed on 5 May 2026

The Agreement will promote food security by curbing subsidies to illegal, unreported and unregulated fishing, by prohibiting subsidies to fishing overfished stocks, and by prohibiting subsidies to fishing on the unregulated high seas.⁷⁾World Trade Organization, 2025. WTO Agreement on Fisheries Subsidies enters into force. https://www.wto.org/english/news_e/news25_e/fish_15sep25_e.htm. Accessed on 6 May 2026

The goal of the Agreement is to support sustainable fisheries management practices by all WTO members through stopping overfishing by eliminating certain forms of fisheries subsidies which contribute to overcapacity and overfishing, by cutting subsidies that contribute to illegal, unreported and unregulated fishing, and by stopping the introduction of  new similar subsidies. It means that it will affect governments and the legal framework in general, with a focus on sustainability. Recently, in 2026 at the fourteenth Ministerial Conference of the World Trade Organization (WTO) Yaoundé, Cameroon, this agreement has caught the attention of international organizations focused on sustainability. For instance, IUCN (The International Union for Conservation of Nature) has called for more attention to sustainable development in fisheries with focus on The WTO Agreement on Fisheries Subsidies.⁸⁾IUCN (2026). IUCN urges WTO MC14 to build on fisheries subsidies agreement, focus on sustainable development. https://iucn.org/iucn-statement/202603/iucn-calls-wto-14th-ministerial-conference-integrate-sustainable-development. Accessed on 7 May 2026

Goals and expectations for the global and the Arctic fisheries

As of 2019, global fisheries subsidies were at USD 35.4 billion in 2018, of which capacity-enhancing subsidies are USD 22.2 billion. Among the top subsidizers are China, the EU, USA, the Republic of Korea, and Japan – these states contribute  the most to the total estimated subsidy.⁹⁾Sumaila U.R., Ebrahim N., Schuhbauer A., Skerritt D., Li Y., Kim H.S., Mallory T.G.,. Lam V.W.L., Pauly D. (2019). Updated estimates and analysis of global fisheries subsidies, Marine Policy, Volume 109, 103695, ISSN 0308-597X. Retrieved from https://doi.org/10.1016/j.marpol.2019.103695 The 2021 Oceana report on harmful fisheries subsidies showed that the contribution of parties could vary by the size, distribution and sub-sectors of fleets, drivers for distant-water and high-seas fishing, and other factors.¹⁰⁾Skerrit D.J., Sumaila U.R. (2021). Assessing the spatial burden of harmful fisheries subsidies, Oceana. https://oceana.org/wp-content/uploads/sites/18/OceanaDWF_FinalReport.pdf. Accessed on 8 May 2026

Harmful fisheries subsidies can be caused by local policies and legal frameworks, lack of information on the biology of fish species and commercial characteristics, and specifics of trade and tax regulations, and more. All these obstacles may be potentially eliminated or reduced by effectively distributing subsidies, funds and government management of fleets.

Fishing activities in the Arctic Ocean take place in the territorial and EEZ waters, and in the international waters (high seas). Although northern waters are characterized by the effective management mechanisms of Arctic states working together and creating multilateral agreements, the potential for a conflict over biological resources exists.¹¹⁾Evans J, Østhagen A. (2021). Fisheries Disputes: The Real Potential for Arctic Conflict, The Arctic Institute, 3 June. https://www.thearcticinstitute.org/fisheries-disputes-real-potential-arctic-conflict/. Accessed on 9 May 2026

However, fish stocks in the north are declining. A recent decline in Northeast Arctic cod stock has been recorded, caused by increasing fishing pressure which has prompted arguments for a  reduction of fishing quotas.¹²⁾McBride O. (2025). Advice on 2026 NEA Cod Fishing Plunges but Haddock Increases, The Fishing Daily, July 1. https://thefishingdaily.com/latest-news/advice-on-2026-nea-cod-fishing-plunges-but-haddock-increases/. Accessed on 10 May 2026 Based on local reports, Norwegian shellfish landings are showing a similar trend over the past year.¹³⁾McBride O. (2025). Advice on 2026 NEA Cod Fishing Plunges but Haddock Increases, The Fishing Daily, July 1. https://thefishingdaily.com/latest-news/advice-on-2026-nea-cod-fishing-plunges-but-haddock-increases/. Accessed on 10 May 2026 Salmon species in Arctic rivers are experiencing dramatic declines as well, and as a result these changes are affecting Indigenous communities and their access to food, and are having a negative impact on traditional Indigenous cultures.¹⁴⁾The Arctic Council (2025). Salmon Peoples of the Arctic, May 12. https://arctic-council.org/ru/news/salmon-peoples-of-the-arctic/. Accessed on 10 May 2026

These factors create a more competitive environment between interested parties in global fishing, and the WTO Fisheries Subsidies Agreement aims to focus on the sustainability of the fishing industry in the north as well. Some possible positive outcomes of this new international cooperation are the following:

More information about fish stocks shared

It is believed that the new agreement will initiate the collection of data, new exploration activities, and improve information sharing. Local databases may play a crucial role in this process, as they will be in the focus while reporting on specific species and their migrations within the Arctic region and adjacent seas. It is even more crucial for nations to work as a team while monitoring fish stocks, which are characterized by migratory behaviour under new climate change conditions. It has been found that the exploitation status of marine species is negative when a stock is shared in comparison to when it is contained within a single EEZ – climate change affects sustainability of these stocks when they shift their distribution.¹⁵⁾Abrantes J.P. (2022). Managing fish stocks shared by nations must focus on the impacts of climate change. The Conversation, May 26. https://theconversation.com/managing-fish-stocks-shared-by-nations-must-focus-on-the-impacts-of-climate-change-181828. Accessed on 11 May 2026 In addition, information sharing helps recognize the importance of ecosystem effects, for instance scientists working together to study the interaction of Northeast Arctic cod with capelin and herring in the Barents Sea.¹⁶⁾Kvamsdal S.F. et al. (2016). Harvest control rules in modern fisheries management. Elements. Science of Anthropocene 4: 000114. https://doi.org/10.12952/journal.elementa.000114 If WTO members implement optimal ecosystem approaches as described in the Fisheries Subsidies Agreement, it will become a significant tool in modern fisheries management in the northern seas.

Optimal management of fleets

The problem of overfishing and illegal/unreported fishing is caused by aggressive harvesting of open access resources, and as a result of it – the collapse of a fish stock. Access to new technologies, as well as absence of legal framework, usually lead to overcapacity in national fishing fleets.¹⁷⁾Nævdal, E. Productivity and Management of Renewable Resources: Why More Efficient Fishing Fleets Should Fish Less. Environ Resource Econ 81, 409–424 (2022). https://doi.org/10.1007/s10640-021-00633-2

However, the flexibility of the industry, together with strong scientific advice and appropriate agreements, may quickly adjust the capacity of the fishing fleet. Among positive examples, the Treaty on maritime delimitation and cooperation in the Barents Sea and the Arctic Ocean signed by Norway and Russia (which came into force in 2011) established a solid management framework in the region for the jointly harvested fish stocks and resulted in the effective use of fleets.¹⁸⁾Jensen Ø. (2011). Current Legal Developments, The Barents Sea: Treaty between Norway and the Russian Federation concerning Maritime Delimitation and Cooperation in the Barents Sea and the Arctic Ocean. International Journal of Marine and Coastal Law, Vol 26, No 1, 2011, pp. 151-168 The WTO Fisheries Subsidies Agreement, by controlling vessel numbers, efforts, and catch limits, should focus on economic viability and the sustainability of fleets in the Arctic region.

Effective negotiations between parties

The WTO, as an international organization, provides a framework for effective negotiations and decision-making for all the parties involved. The new agreement may open discussions on novel technologies and optimal management of fleets between those countries with limited options for direct dialogue due to political reasons. The shared fishing grounds and open access resources of the Arctic Ocean may lead to productive sustainable management practices. However, the first step from agreement to action is required.

In addition, the WTO supports Indigenous people – as a fair trading system must also defend food security and the rights of smallholder farmers, Indigenous Peoples – and perhaps the new fisheries agreement may undertake actions to protect the rights of Indigenous peoples and traditional life of local communities in the Arctic. In fact, only a few WTO member states subsidize fisheries in a way to support fishing as an economic activity through technical and economic instruments as well as traditional cultural expressions or rituals.¹⁹⁾Kobayashi T. (2024). By Definition Ignored?: Indigenous Peoples’ Fishing Rights in The WTO Fisheries Subsidies Agreement 2022 (March 29, 2024), Asian Journal of WTO & International Health Law and Policy, Vol. 19, No. 1, pp. 143-164, March 2024, https://ssrn.com/abstract=4780270. Accessed on 12 May 2026 The growing number of parties which are the most supportive to Indigenous communities in the North, i.e. Arctic States, may become a new trend in the work of the WTO members based on the signed agreement.

Transparent reporting system

If the WTO Fisheries Subsidies Agreement works well, then we can reach a well-described reporting scheme used by different nations. Collecting and sharing data based on an uniformed system will contribute to the development of a transparent reporting system. The Agreement aims to eliminate hidden or intentionally replaced data by motivating parties to share as much information as they can in order to improve our knowledge about the changing Arctic ecosystem. Members are required to notify the WTO annually on the types of fishing activities subsidized, the status of fish stock, measures on conservation, and fleet and vessel details. With the aim to support, the Fisheries Transparency Initiative (FiTI) has announced the launch of a new web-based Fisheries Information System (FIS), which can be used to share information about their fisheries.²⁰⁾Biermann S. (2025). FiTl supports implementation of WTO Agreement on Fisheries Subsidies with new Fisheries Information System (FIS). 19 September 2025. https://fiti.global/fiti-supports-implementation-of-wto-agreement-on-fisheries-subsidies-with-new-fisheries-information-system-fis#:~:text=With%20a%20very%20easy%20and,operationalise%20transparency%20under%20the%20AFS. Accessed on 12 May 2026 A well-developed, transparent reporting system improves fisheries through open data and modern technology.

Scientific advice and fishing quotas

Following scientific advice is a key to effective fishery management. In past decades, while using new technologies which give us better understanding of some aspects of climate change, the Arctic states and some observers have reached a consensus on the establishment of fishing quotas. In the Iceland-East Greenland-Jan Mayen area, there is a quota for the Barents Sea capelin, and in the East Greenland/Iceland/Faroe Islands, there is quota for Greenland halibut.  In Iceland there is quota for Northern shrimp, and in the Barents Sea, based on joint Russian Norwegian quotas, there is a limit on catches of the Northeast Arctic cod and haddock.²¹⁾Blomeyer R., Stobberup K., Erzini K., Lam V., Pauly D., Raakjaer J. (2015). Fisheries Management and the Arctic in the context of climate change. European Parliament. Directorate-General for internal policies. Policy Department B: Structural and cohesion policies. https://www.europarl.europa.eu/RegData/etudes/STUD/2015/563380/IPOL_STU(2015)563380_EN.pdf. Accessed on 13 May 2026 The WTO Fisheries Subsidies Agreement aims to support  communication between scientific institutes and industry players for sustainable fisheries management. This practice has been used in many parts of the global ocean, and it will help to monitor the ecosystem characteristics of the Arctic better, and, if required, to adjust recommended catches through subsidies. The more we know from the field, the more efficient the management is.

Strengthened international cooperation

The WTO Fisheries Subsidies Agreement promotes global partnership by establishing a collective structure allowing to prohibit harmful subsidies for illegal, unreported, and unregulated (IUU) fishing, as well as nations supporting the use of overfished stocks and fishing in unregulated high seas areas. The WTO Agreement itself is an example of cooperation but it still supports individual country’s goals, however, when the Subsidies Agreement is mentioned – then we can talk about the global sustainable fisheries and international coordination.

Also, political decisions often distract countries from direct dialogue in different industries. The WTO Fisheries Subsidies Agreement may play a crucial role in preserving the long-time established local agreements from being disturbed: for instance, the Norwegian-Russian Fisheries Agreement in the Barents Sea works but is going through a stagnation period due to the conflict over Ukraine.²²⁾Holm A.O. (2025). A Breakdown That Could Lead to an Ecological Disaster. High North News, 29 August. https://www.highnorthnews.com/en/breakdown-could-lead-ecological-disaster. Accessed on 14 May 2026 This newly ratified WTO agreement will enhance the collaboration between countries to continue dialogue with the focus on sustainability.

Conclusion

The WTO Fisheries Subsidies Agreement has a good potential for the future development of Arctic fisheries. Through optimal fisheries management, WTO members can not only establish solid international cooperation, but also show effective economic indicators and achieve sustainable goals while harvesting biological resources in the North, while hopefully taking into account the opinion of Indigenous communities as well. It will take time to negotiate additional recommendations on fisheries subsidies as it is quite a complex activity. However, the states party to the agreement have agreed that subsidies are prohibited for illegal fishing, fishing of understudies stocks, and on the high seas outside of established management areas. At the end of the day, the WTO Agreement provides an excellent platform from which sustainable development of the industry can be carried out.

Ekaterina Uryupova is a Senior Fellow at The Arctic Institute.