Negotiations on fisheries subsidies at the WTO began during the Doha Round in 2001, driven by concerns over the depletion of global fish stocks. The aim is to implement Sustainable Development Goal (SDG) 14.6, which calls for prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, and eliminating subsidies that contribute to IUU fishing. At the 12th Ministerial Conference (MC12) in Geneva in 2022, members adopted the Agreement on Fisheries Subsidies (AFS), which prohibits subsidies for IUU fishing, overfished stocks, and unregulated fishing on the high seas. However, disciplines on subsidies contributing to overcapacity and overfishing (OCOF) were left for future negotiations, which were a key focus at MC14.

The WTO Fisheries Subsidies Agreement is crucial for global marine sustainability and the livelihoods of millions of traditional fishers, particularly in developing countries like India. Harmful subsidies lead to overfishing, depleting fish stocks and threatening marine ecosystems. For India, a long transition period is vital to allow its developing fishing sector to grow and modernize without immediately facing stringent subsidy cuts, which could impact food security and the livelihoods of its coastal communities. India's stance also highlights the principle of 'common but differentiated responsibilities,' arguing that developed nations, historically responsible for distant-water industrial fishing and overexploitation, should bear a greater burden in subsidy reduction.