Subsidizing the Deep Blue: An Introductory Analysis of Southern Ocean Fishery Subsidies and the Economics of Distant Water Fleets

Across the high seas, distant water fisheries have benefited from government subsidies. Public funds directed towards supporting the fishery sector have enabled these fisheries to extend their range and duration at sea, directly threatening fish populations and the health of ocean ecosystems. Fuel subsidies have been identified as the primary form of subsidy, often allowing fishing vessels to continue operations despite declining revenues. While significant attention has been directed towards investigating the magnitude of fishery subsidies on a global scale, no studies have specifically focused on the Southern Ocean. The Southern Ocean accounts for 10% of the global oceans, and its two main fisheries, krill and toothfish, are managed by the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). Through primary data collection in the form of interviews, our study provides a comprehensive analysis of the complex operations that underpin Southern Ocean fisheries. Our research drew upon 29 interviews with industry representatives, government officials, and expert researchers from 13 CCAMLR Member States engaged in fishing activities in the Southern Ocean. The most commonly identified subsidies in our interviews included fuel subsidies, tax breaks, discounted loans, research, development, and innovation grants, infrastructure support, and import subsidies. However, our results show that only a minority of Southern Ocean fisheries heavily depend on government subsidies, with subsidy allocation varying greatly by country. For the majority of CCAMLR Member States, Southern Ocean fishery subsidies are largely insufficient to induce significant changes in fishery operations. Instead, private fishery organizations continually adjust their economic strategies and operational dynamics to increase profitability and lower expenses, often foregoing government subsidies by relocating their operations (e.g., home ports) to foreign countries closer to the Southern Ocean.