After nearly 20 years, the World Trade Organisation's Agreement on Fisheries Subsidies has officially taken effect in New Zealand.
Trade and Investment Minister Todd McClay said New Zealand exporters will benefit from fairer competition as the World Trade Organisation’s Agreement on Fisheries Subsidies takes effect, after nearly two decades of negotiations.
“Unfair subsidies distort markets and disadvantage responsible producers. This agreement delivers on New Zealand’s long-standing push for global reform, ensuring Kiwi exporters can compete on a level playing field while helping to safeguard fish stocks for the future,” Minister McClay said.
The agreement has prohibited subsidies that support illegal, unreported, and unregulated fishing, fishing of overfished stocks and unregulated high seas fishing.
“New Zealand was the first WTO member to call for improved rules on fish subsidies in the 1990s. Now we look forward to seeing the benefits, especially in the Pacific, where many of our key partners and exporters operate,” Minister McClay said.
“New Zealand will also continue to back efforts to conclude additional rules on fish subsidies at the WTO.”
The Minister added that the agreement has reinforced New Zealand’s wider trade ambition of doubling the value of New Zealand’s exports in 10 years.
“Stronger global rules that deliver fairer competition are an important part of that.”
The Agreement on Fisheries Subsidies entered into force following ratification by two-thirds of the WTO members. New Zealand ratified it in September 2023, after negotiations concluded in 2022.
This announcement was made following Minister McClay’s discussions with US Trade Representative Jamieson Greer and Secretary of Agriculture Brooke Rollins, where he expressed New Zealand’s concerns over US tariffs, and the disadvantage this has created for New Zealand exporters in relation to other countries, many of whom subsidise their production.
Ambassador Greer recognised that New Zealand applies low tariffs against US goods. He confirmed that the additional five percent tariff imposed on New Zealand exports last month was in relation to New Zealand’s balance of trade surplus and represented a new bottom tariff rate of 15 percent, or higher, for all countries that sold more to the US than they bought.
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