The End of Globalization?
The Emergence of Protectionism in
the U.S. Seafood Market
U.S. Seafood Imports Have
Doubled in the Past 15 Years
12
10
8
6
Seafood Imports (US $
Billions)
4
2
0
1984
1987
1990
1993
1996
1999
While Domestic Production Has
Remained Relatively Stable
4
3.5
3
2.5
U.S. Commercial
Landings (US $
Billions)
2
1.5
1
0.5
0
1991
1993
1005
1997
1999
Domestic Producers Are
Suffering
• Fishery specific
• Increasing Costs of Operation
–
–
–
–
Increased Labor Costs
Increased Capital Costs
Increased Conservation Burden
Decreased Resource Availability
Domestic Producers Perceive an
Unlevel Playing Field
• Shrimp
– Wild-caught vs. wild-caught: turtles
– Aquaculture vs. aquaculture: drugs
– Wild-caught vs. aquaculture: costs
• Catfish
– Aquaculture vs. aquaculture: labor & land
• Salmon
• Wild-caught vs. aquaculture: product form, costs &
seasonality
• Others: Crawfish, Mussels, Blue Crab, Northern Shrimp
U.S. Tariffs are low and will
likely decrease further
• Average <2%
• U.S. seeking zero for zero tariff reductions
in WTO round
• Freed Trade Agreement of the Americas
• U.S. – Chile Free Trade Agreement
• U.S. – Singapore Free Trade Agreement
In the absence of tariff
protections…
• Antidumping
– Crawfish
– Salmon
– Catfish
– Shrimp
– P.E.I. Mussels
– Northern Shrimp
• Countervailing Duties
– Salmon
• Section 201
– Blue Crab
SHRIMP
4
3.5
3
2.5
2
1.5
1
0.5
0
1989 1991 1993 1995 1997 1999 2001
Shrimp Imports (US $
Billions)
Gulf of Mexico Shrimp Farmers
Calling for Antidumping
Investigation
• Don’t appear capable of raising funds
necessary to file an antidumping case
CATFISH
25
20
Catfish Imports (US $
Millions)
15
Vietnamese Catfish
Imports (US $
Millions)
10
5
0
1989 1991 1993 1995 1997 1999 2001
Domestic Catfish Industry Called
for Antidumping Investigation
Don’t appear capable of raising funds
necessary to file an antidumping case
SALMON
900
800
700
600
500
400
300
200
100
0
1989 1991 1993 1995 1997 1999 2001
Salmon Imports (US $
Millions)
Domestic Salmon Industry has
tried antidumping in the past
Unsuccesful
OTHERS
• Crawfish – antidumping duties of 200%
imposed
• P.E.I. Mussels – case settled
• Blue Crab – couldn’t raise funds, filed
Section 201 instead, unsuccessful
• Northern Shrimp – fishermen want to file,
processors resisting
CRAWFISH
6000
5000
4000
3000
Crawfish Imports
(Thousand kilos)
2000
1000
0
1989
1991
1993
1995
1997
1999
2001
TRENDS?
• Most Cases Don’t Win
• Those that do don’t curb the flow of imports
In the absence of procedural
relief, domestic producers are
seeking political solutions
Nontariff Trade Barriers
•
•
•
•
Non-science-based nomenclature rules
Sanitary/Phytosanitary
Country of Origin Labeling
Wild vs. Farm-raised labeling
“All Politics is Local”
The Late “Tip” O’Neal
U.S. House of Representatives
Former Speaker of the House
CATFISH
• Mississippi & Alabama vs. National Policy
– Senator Thad Cochran
• Ranking Member – Senate Agriculture
Appropriations Subcommittee
– Senator John McCain
• Presidential candidate
• Maverick politician
ISSUE
Statutory Prohibition on the use of the
term “catfish” for anything other than
North American catfish of the family
Ictluridae
PROBLEM?
• There are hundreds of species, 35 families
in the Order Suliformes, the order of
CATFISH
Science vs. Politics on the Floor
of the U.S. Senate
The Senate voted 64-32 to keep the
prohibition!
Unintended Consequences
• Target was Vietnamese Catfish
• Now being called Basa, enjoying a price
premium and imports continue unabated
• Icelandic ocean catfish now being sold as
Atlantic wolffish
Shrimp
Looking at unapproved aquaculture
drug issue as possible means of relief
Mandatory Country of Origin
Labeling
•
•
•
•
•
Effective in 2004
All fish and shellfish
Ingredients in a processed food item exempt
Retail level
Must also identify as either “wild-caught”
or “farm-raised”
Mandatory Country of Origin
Labeling (cont.)
• Driven by:
– Alaskan Salmon
– Mississippi Catfish
– Gulf of Mexico/South Atlantic Shrimp
Mandatory Country of Origin
Labeling (cont.)
• Premised on perceived preference of U.S.
consumers for U.S. products
• Premise is suspect – U.S. consumers may be
more driven by price
• Consumers may actually prefer foreign
goods (Norwegian salmon, for example)
• If so, labeling will afford little protection
CONCLUSIONS
• U.S. domestic producers will continue to
seek political remedies
• Remedies will continue to be unsuccessful
or only partially successful
• With each failure, the stakes get higher
• Could lead to a return to tariffs and/or
government subsidies