Korea deposits instrument of acceptance of the WTO Fisheries Subsidies Agreement

The Ministry of Trade, Industry and Energy (MOTIE) announced on October 24 that the Korean government has formally deposited the instrument of acceptance for the Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization to accept the World Trade Organization (WTO) Fisheries Subsidies Agreement on October 23 on the occasion of attending the Senior Officials Meeting (SOM) held in Geneva, Switzerland (October 23-24).

The Fisheries Subsidies Agreement, negotiated since 2001, was adopted at the 12th Ministerial Conference last June. Korea has since completed the necessary domestic ratification procedures, receiving the president's approval on September 12 this year. This agreement primarily focuses on prohibiting subsidies related to illegal, unreported, and unregulated fishing, fishing on overfished stocks, and unregulated high seas fishing.

Once this agreement takes effect, it is expected to encourage sustainable fishing practices by curbing harmful subsidies, a major contributor to the worldwide decline in fishery resources. In particular, it is anticipated to enhance the regulation of indiscriminate illegal fishing and overfishing by foreign vessels in our neighboring seas.

The prohibited subsidies in this agreement are already restricted and regulated under domestic laws such as the "Fisheries Act" and the "Distant Water Fisheries Development Act". Hence, the impact of this agreement's implementation on the local fisheries subsidy system is forecast to be minimal.

This agreement represents the second notable achievement since the inception of the WTO in multilateral negotiations following the Trade Facilitation Agreement of December 2013, and is the first agreement that addresses environmental sustainability. Furthermore, the agreement holds substantial significance in validating the relevance of the WTO and in revitalizing the multilateral trading system.

For issues that remained unresolved during the 12th Ministerial Conference, such as the rules for subsidies contributing to overfishing and overcapacity, and preferences for developing countries, subsequent negotiations have been underway since the beginning of this year. The Government is actively participating in the negotiations to reach a balanced agreement, taking into consideration both the impact on our fisheries industry and the opinions of stakeholders.