Nicaragua Backs WTO Fisheries Subsidies Pact, Only 10 Acceptances Away

On 2 June 2025, the World Trade Organization (WTO) moved significantly closer to implementing its historic Agreement on Fisheries Subsidies, following Nicaragua’s formal acceptance of the treaty. WTO Director-General Ngozi Okonjo-Iweala received the instrument of acceptance from Nicaragua’s WTO Ambassador, Rosalía Bohorquez Palacios, during a ceremonial handover in Geneva. This marks the 101st ratification of the agreement, bringing the global community within striking distance of the 111 acceptances required for the accord to enter into force.

A Global Milestone in Ocean Sustainability

“This landmark agreement, adopted by consensus at the WTO’s 12th Ministerial Conference in 2022, placed us on a new path toward ocean sustainability,” said Director-General Okonjo-Iweala. “Nicaragua’s acceptance is a powerful statement of support for our shared commitment to healthy oceans and sustainable trade. With just ten more acceptances to go, we are close to achieving binding global rules that will protect marine biodiversity for generations to come.”

The Agreement on Fisheries Subsidies is the first WTO deal with an explicit environmental sustainability objective. It establishes a global legal framework to curb harmful subsidies that fuel overfishing, particularly in regions where fish stocks are already under serious threat.

Specifically, the agreement prohibits three major types of subsidies:

1. Subsidies for illegal, unreported, and unregulated (IUU) fishing

2. Subsidies for fishing of overfished stocks

3. Subsidies for fishing in the unregulated high seas, beyond national jurisdictions

These disciplines aim to curb practices that contribute to stock depletion, habitat destruction, and food insecurity, especially in vulnerable coastal communities.

Nicaragua: A Blue Economy Commitment

Ambassador Rosalía Bohorquez Palacios emphasized Nicaragua’s strong alignment with the objectives of the agreement.

“Our acceptance of the Agreement on Fisheries Subsidies reaffirms Nicaragua's support for the rules-based multilateral trading system and our commitment to promoting the sustainable use of marine resources,” she said. “As a country bordered by both the Caribbean Sea and the Pacific Ocean, we recognize the critical importance of protecting our blue economy and marine biodiversity.”

Nicaragua’s coasts host rich marine ecosystems that contribute significantly to food security, employment, and economic development. By ratifying the agreement, the country sends a clear signal of its commitment to align domestic fisheries policies with global sustainability standards.

Technical Support Fund to Launch Call for Proposals

With the 101st acceptance milestone reached, the WTO is preparing to activate the WTO Fisheries Funding Mechanism, also known as the WTO Fish Fund. According to DG Okonjo-Iweala, the fund will open its first call for proposals later this week, inviting developing countries and least-developed members that have accepted the agreement to submit funding requests.

This support is designed to help governments meet their new obligations under the agreement by:

• Strengthening legal and regulatory frameworks

• Enhancing fisheries monitoring and data systems

• Supporting enforcement and surveillance against IUU fishing

• Building administrative and technical capacity at national and local levels

The fund is supported by voluntary contributions from WTO members, including Canada, the European Union, Australia, Japan, and others.

What Comes Next: Final Push to Ratification

According to WTO rules, two-thirds of the organization’s 164 members — or 111 acceptances — are needed for any multilateral agreement to take effect. With Nicaragua’s endorsement, only ten more countries need to submit their formal instruments of acceptance to the WTO’s legal office.

The Director-General has called on remaining members to complete their ratification processes quickly:

“This is the moment for all WTO members to reaffirm their commitment to ocean sustainability. Let us cross this finish line together — for people, planet, and prosperity.”

A Living Agreement: Ongoing Negotiations for Phase Two

In addition to the current rules, WTO members have agreed to continue negotiations on phase two of the Agreement on Fisheries Subsidies. These discussions aim to strengthen the deal by addressing:

• Subsidies that contribute to overcapacity and overfishing not already covered under the current agreement

• Special and differential treatment provisions for developing countries

• Additional transparency and notification requirements

These negotiations are expected to conclude at the WTO’s 13th Ministerial Conference (MC13), scheduled for February 2026 in Abu Dhabi, United Arab Emirates.

A Turning Point for Global Ocean Governance

The Agreement on Fisheries Subsidies stands as the first WTO deal to incorporate environmental protection at its core and represents a breakthrough in multilateral cooperation for the global commons. When it enters into force, it will help ensure the long-term health of marine ecosystems, protect millions of jobs, and enhance food security—particularly for low-income, fish-dependent nations.

It also signals that trade and sustainability are not opposing forces but can and must advance in tandem.