Parliament Endorses Proposal on WTO Fisheries Subsidies Agreement

The House of Representatives on Monday endorsed a proposal seeking approval of the World Trade Organization (WTO)'s Agreement on Fisheries Subsidies by a majority vote, the state-run news agency RSS reported.

According to RSS, Minister for Industry, Commerce, and Supplies Damodar Bhandari tabled the proposal for deliberation, urging lawmakers to support the agreement’s ratification. The parliament approved the proposal following a discussion involving lawmakers Rama Koirala Paudel, Hemraj Rai, Hitraj Pandey, and Prem Suwal.

Speaking during the session, Minister Bhandari reportedly said the agreement is a multilateral effort that would enable Nepal to better advocate for its interests within the WTO framework.

“So far, 106 countries have expressed their support. Although Nepal is a landlocked country, we retain rights to access the sea. Once the agreement comes into effect, fish produced in Nepal will gain greater access to international markets,” RSS quoted Minister Bhandari as saying.

The WTO Agreement on Fisheries Subsidies, adopted at the 12th Ministerial Conference (MC12) on June 17, 2022, marks a major step forward for ocean sustainability by prohibiting harmful fisheries subsidies, which are a key factor in the widespread depletion of the world’s fish stocks, the WTO mentions on its website.

The Agreement is regarded as a historic milestone for several reasons. It is the first Sustainable Development Goal (SDG) target to be fully achieved, and notably, the first to be met through a multilateral agreement among WTO members, the WTO further states. It also marks the WTO’s first agreement that directly addresses environmental concerns, making it a pioneering step in the organization’s engagement with sustainability. Additionally, it stands as the first broad, binding global agreement specifically focused on ocean sustainability. Significantly, it is only the second agreement concluded at the WTO since its establishment, highlighting the rare consensus achieved among its diverse membership.

A 2017 World Bank report entitled The Sunken Billions Revisited estimated economic losses from overfishing at US$83 billion. The long-term decline in fish stocks has led to a significant drop in fisheries productivity, with global catches stagnating despite a sharp increase in fishing efforts. Restoring overexploited stocks could increase economic benefits by almost 30 times, from US$3 billion to US$86 billion, the European Parliament said in a report.

According to the International Institute for Sustainable Development (IISD), the Agreement includes special provisions for Least Developed Countries (LDCs), such as Nepal. These provisions offer a complete and permanent exemption from certain subsidy restrictions. More importantly for Nepal, these exemptions will continue for a transitional period even after it graduates from LDC status. The exact length of this period is still under negotiation.

According to IISD, the Agreement provides Nepal, which is on the path to graduating from LDC status, a dual advantage. In the short term, it ensures policy flexibility and protections under WTO rules. In the long term, by limiting unfair subsidies given by richer nations, the Agreement aims to create a fairer global playing field—potentially opening new export opportunities for Nepal’s growing aquaculture sector. At the same time, Nepal’s endorsement of the deal enhances its international standing as a supporter of sustainable development and responsible trade practices.