Effective July 20, 2026, India formally joined the World Trade Organization (WTO) Agreement on Fisheries Subsidies (AFS), becoming a party to the first multilateral WTO agreement with an environmental sustainability objective, according to a statement by the commerce ministry. The agreement prohibits government support for illegal, unreported and unregulated (IUU) fishing and the fishing of overfished stocks.
What Changed: The Rule
The AFS was adopted by consensus at the 12th WTO Ministerial Conference in Geneva in June 2022 and came into force on September 15, 2025, after two-thirds of WTO members (166 members at present) deposited their instruments of acceptance. The pact focuses on subsidies related to marine wild capture fishing and fishing-related activities at sea, but explicitly excludes aquaculture and inland fisheries from its scope.
Key prohibitions under the agreement include:
- Subsidies linked to IUU fishing: Any government financial contribution that supports vessels or operators engaged in illegal, unreported, or unregulated fishing is banned.
- Subsidies for fishing of overfished stocks: Support for fishing activities targeting stocks that are already overexploited is prohibited.
The agreement also aims to create a more equitable global fisheries regime by disciplining harmful subsidies that support large, heavily subsidized industrial fishing fleets operated by distant water fishing nations.
Who Is Affected
The agreement applies to all WTO members that have accepted it, including India. As of July 20, 2026, India is a party, meaning its central and state governments, as well as any public bodies, must ensure their fisheries subsidy programs comply with the prohibitions.
Entities most affected:
- Government agencies that administer fisheries subsidies (e.g., fuel subsidies, vessel construction grants, income support for fishers).
- Large-scale industrial fishing operators that may have previously benefited from subsidies now prohibited.
- Small-scale and traditional fishers are protected, as the agreement explicitly safeguards their livelihoods and promotes sustainable fisheries. India noted that its fisheries are predominantly small-scale, and it is not a major participant in industrial distant-water fishing.
- Seafood exporters: India's predominance of aquaculture-based shrimp exports, which fall outside the agreement's scope, ensures continued resilience and competitiveness, according to the commerce ministry.
Compliance Obligations and Deadlines
For India, the acceptance date of July 20, 2026, marks the start of full compliance obligations. The commerce ministry stated that India's domestic fisheries management framework is already in alignment with the agreement. However, all subsidy-granting authorities must review existing programs to ensure they do not violate the new rules.
| Key Milestone | Date |
|---|---|
| Adoption at WTO Ministerial Conference | June 2022 |
| Agreement entered into force | September 15, 2025 |
| India deposited Instrument of Acceptance | July 20, 2026 |
Action items for compliance:
- Inventory existing subsidies: Identify all national and sub-national fisheries subsidies, including fuel subsidies, license fees reductions, or support for vessel construction.
- Benchmark against IUU fishing lists: Cross-reference subsidy recipients with any lists of vessels or operators flagged for IUU fishing (e.g., by regional fisheries management organizations).
- Assess stock status: For subsidies tied to specific fisheries, determine whether targeted stocks are overfished, using the best available scientific data.
- Document aquaculture exclusion: Ensuring that any subsidies for aquaculture or inland fisheries remain separate from marine wild-capture programs.
Implications for Trade Compliance
While the AFS itself does not prescribe specific penalties, violations can be challenged through the WTO's dispute settlement mechanism, potentially leading to retaliatory trade measures. For trade compliance officers, the key risk is that subsidies to companies involved in IUU fishing could trigger dispute proceedings against India, affecting trade relations.
Moreover, the agreement complements other international efforts such as the Port State Measures Agreement and IUU fishing regulations in major markets like the EU and US. Companies involved in seafood trade should verify that their supply chains are free from IUU-subsidized catch to avoid reputational and regulatory risks.
Resources and Guidance Sources
- WTO Agreement on Fisheries Subsidies text – available on the WTO website.
- Commerce Ministry statement – dated July 20, 2026, detailing India's acceptance.
- WTO dispute settlement body – for enforcement actions.
Industry associations such as the International Chamber of Commerce (ICC) and the World Customs Organization (WCO) may provide additional guidance on trade compliance related to fisheries subsidies.
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