India deposited its Instrument of Acceptance for the WTO Agreement on Fisheries Subsidies on July 20, 2026, becoming the 123rd member to join the pact. Commerce Secretary Rajesh Agrawal formally handed over the instrument to WTO Director-General Ngozi Okonjo-Iweala in Geneva. The agreement is the first multilateral WTO deal with an environmental sustainability objective and bans subsidies that fuel illegal fishing and the depletion of marine fish stocks.
The WTO Agreement on Fisheries Subsidies
The Agreement on Fisheries Subsidies (AFS) was adopted by consensus at the 12th WTO Ministerial Conference (MC12) held in Geneva in June 2022, after more than two decades of negotiations. It is only the second new multilateral agreement to be added to the WTO rulebook since the organisation was established in 1995, following the Trade Facilitation Agreement of 2013.
The agreement directly responds to Target 14.6 of the United Nations Sustainable Development Goals (SDGs), which calls on WTO members to prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, and to eliminate subsidies that support illegal fishing. The AFS entered into force on September 15, 2025, after two-thirds of WTO members (then 111 of 166 members) deposited their instruments of acceptance. As of July 2026, 123 members have formally accepted the agreement, with more expected to follow.
What the Agreement Prohibits
The AFS applies to subsidies for marine wild capture fishing and fishing-related activities at sea. Aquaculture (fish farming) and inland fisheries (rivers, lakes, reservoirs) remain outside its scope, a significant point for India given that the bulk of its seafood exports come from farmed shrimp.
The agreement establishes three binding prohibitions on harmful subsidies:
Subsidies Contributing to IUU Fishing
Under Article 3, members cannot grant or maintain subsidies to vessels or operators engaged in illegal, unreported and unregulated (IUU) fishing. An IUU determination can be made by the coastal member (for waters under its jurisdiction), the flag state (for vessels flying its flag), or a relevant Regional Fisheries Management Organisation or Arrangement (RFMO/A). Once a determination is made, all subsidies to the vessel or operator must stop.
Subsidies Regarding Overfished Stocks
Article 4 prohibits subsidies for fishing or fishing-related activities targeting fish stocks that are recognised as overfished. However, this does not apply if the member can show that the subsidy is part of measures to rebuild the stock to a biologically sustainable level.
Subsidies on the Unregulated High Seas
Article 5.1 bans subsidies provided to fishing or fishing-related activities in waters outside the jurisdiction of any coastal member and outside the competence of any RFMO/A. This covers the unregulated high seas, where no governance framework exists to manage fishing.
Special Flexibilities for Developing Countries
The agreement provides a two-year “peace clause” for developing and least-developed country (LDC) members, during which subsidies granted within their Exclusive Economic Zones (EEZs) are exempt from dispute settlement action under the prohibitions on IUU fishing and overfished stocks. LDCs also benefit from due restraint from other members in raising disputes, and developing countries with a share of global marine catch of no more than 0.8% can provide certain transparency notifications every four years instead of two.
Why India Accepted the Agreement
India’s acceptance came after careful assessment of how the agreement aligns with its national interests. The Ministry of Commerce stated that the pact protects the livelihoods of traditional and small-scale fishers by promoting sustainable fisheries. India argued during the negotiations that the problem of overcapacity and overfishing is driven largely by heavily subsidised industrial fishing fleets operated by distant-water fishing nations, not by small-scale fishermen in developing countries.
Since India’s fisheries sector is predominantly small-scale and artisanal in nature, and not a major participant in large-scale industrial fishing, the disciplines imposed by the AFS place a lighter compliance burden on the country. At the same time, the agreement creates a more equitable global fisheries regime by imposing stricter rules on the large subsidisers.
An additional strategic advantage lies in the composition of India’s seafood exports. More than two-thirds of India’s seafood export earnings come from aquaculture-based frozen shrimp, which falls entirely outside the scope of the AFS since the agreement applies only to marine wild capture fishing. This ensures that India’s export competitiveness remains unaffected.
The government also expects that joining the agreement will strengthen India’s credibility as a responsible seafood exporter and improve access to premium global markets that increasingly demand sustainability and traceability compliance. India’s seafood exports touched a record $8.28 billion in FY 2025-26, and the government has set a target of $10 billion for FY 2026-27, supported by initiatives such as a national digital traceability framework and Product Passport norms for seafood.
India’s Fisheries Sector at a Glance
India is the second largest fish producer in the world, accounting for roughly 8% of global fish output. The fisheries sector supports an estimated 30 million fishers and fish farmers at the primary level and substantially more across the entire value chain. The sector has undergone remarkable growth over the past decade, with total fish production rising from 96 lakh tonnes in 2013-14 to 195 lakh tonnes in 2024-25, a growth of over 100%. Inland fisheries have been the primary driver, expanding by 142% during the same period.
The government has invested heavily in the sector through flagship schemes. The Pradhan Mantri Matsya Sampada Yojana (PMMSY), launched in September 2020 with a total investment of ₹20,050 crore, aims to boost fish production, improve post-harvest infrastructure, and enhance the welfare of fishers. A sub-scheme, the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), was approved in February 2024 with an outlay of ₹6,000 crore to formalise micro and small enterprises in the fisheries sector.
India has also taken steps to align its domestic regulatory framework with the AFS. The government notified the Sustainable Harnessing of Fisheries in the EEZ Rules, 2025, which provide the legal basis for managing fishing in India’s Exclusive Economic Zone. The Marine Products Export Development Authority (MPEDA), established in 1972 under the MPEDA Act, 1972 and headquartered in Kochi, oversees seafood exports and compliance with international standards.
The Road Ahead: Completing the Picture
The AFS is only the first part of a two-track negotiation. The second track, often referred to as “Fish 2”, aims to discipline subsidies that contribute to overcapacity and overfishing in a general sense, not just in the specific situations covered by Fish 1. These include subsidies for vessel construction, fuel, ice, bait, personnel costs, and fishing gear, which together account for the bulk of the estimated $22 billion in harmful fisheries subsidies provided globally each year.
WTO members came extremely close to concluding Fish 2 at the 13th Ministerial Conference (MC13) in Abu Dhabi in February-March 2024 but could not bridge the remaining gaps. Key sticking points included the length of transition periods for developing countries, provisions on distant-water fishing, and the scope of exemptions for large subsidisers. At the 14th Ministerial Conference (MC14) in Yaoundé, Cameroon, in March 2026, ministers adopted a decision to continue negotiations with a view to making recommendations to MC15.
A critical provision is the sunset clause in Article 12 of the AFS. If comprehensive additional disciplines are not adopted within four years of the agreement’s entry into force, the AFS will stand automatically terminated, unless the WTO General Council decides otherwise. This means members have until September 2029 to finalise the Fish 2 rules, making the upcoming MC15 a decisive milestone.
India has a significant stake in these negotiations. It has argued for adequate transition periods for developing countries and for strict disciplines on subsidies provided by large industrial fishing nations whose fleets operate in distant waters. The Committee on Fisheries Subsidies, established after the AFS entered into force, oversees implementation, reviews notifications from members, and serves as a platform for ongoing dialogue on compliance and transparency.
Key Takeaways
- India deposited its Instrument of Acceptance for the WTO Agreement on Fisheries Subsidies (AFS) on July 20, 2026, becoming the 123rd member to join the pact.
- The AFS was adopted at the 12th WTO Ministerial Conference (MC12) in Geneva in June 2022 and entered into force on September 15, 2025.
- It is the first multilateral WTO agreement with an environmental sustainability objective and prohibits subsidies for IUU fishing, overfished stocks, and fishing on the unregulated high seas.
- The agreement applies only to marine wild capture fishing; aquaculture and inland fisheries remain outside its scope, benefiting India’s shrimp-dominated seafood export sector.
- India’s fisheries sector is the second largest in the world (8% of global output), supports 30 million livelihoods, and achieved record seafood exports of $8.28 billion in FY 2025-26.
- If comprehensive disciplines on overcapacity and overfishing (“Fish 2”) are not adopted by September 2029, the AFS will automatically terminate under its sunset clause (Article 12).
