Posted on 07/03/2004 5:42:25 AM PDT by BellStar
On a busy Thursday afternoon, people stood in line to buy shrimp at Rose's Seafood, a no-frills market on a little waterfront street in Kemah. What wasn't as obvious is that roughly half the shrimp spread out before them in big, wet piles were imported — although the market is located a stone's throw from where shrimp boats dock.
Shrimp producers from countries like China and Vietnam,plus four others, are facing the distinct possibility of paying substantial duties as the result of an anti-dumping petition working its way through Washington.
The first indications of how big the duties will be will come Tuesday when the Commerce Department revealsits preliminary decision on China and Vietnam, to be followed late this month by decisions on India,Thailand, Ecuador and Brazil.
At this point, nobody knows how high officials will set the duties, which are supposed to protect U.S. fishermen from unfair competition by raising the priceof imported shrimp here. The domestic shrimpers arefollowing the lead of catfish and crawfish farmers, who have won similar cases.
In a sign that the decision is headed in favor of domestic shrimpers, the U.S. International Trade Commission in February made a preliminary finding of injury to the industry. As with the Commerce Department, it still must make a final decision.
The final numbers aren't expected until late this year or in early 2005.Nobody really knows how much the cost of shrimp will increase at fish markets like Rose's. Manager Tina Tran says it could be on the order of $2 per pound or even $2.50 per pound, on top of the nearly $9 per pound the jumbo size already costs.
44 percent increase? A group representing the American Seafood Distributors Association and the Consuming Industries Trade Action Coalition calculates that retail prices will go up 30 percent under one range of duties, and 44 percent under another range.
Under the latter scenario by the group that opposes the sanctions, the price of U.S.-caught shrimp would go up28 percent, the cost of imported shrimp from the targeted countries would rise 84 percent, and shrimp from other importing countries would rise 19 percent.
"Shrimp has become America's No. 1 seafood becauseimports of high-quality, affordable shrimp have allowed more American restaurants — from family owned restaurants to the most popular chains — to sell a wider variety of shrimp dishes, and American grocery stores to sell millions of pounds of shrimp," Wally Stevens, representing the group, said in a prepared statement.
"Without these imports, shrimp would still be an expensive luxury food that only the rich can afford."
Shrimp boat owners and shrimp processors, representing major states including Louisiana and Texas, describe the anti-dumping effort as a last-ditch effort to stay in business in the face of zooming imports of pond-raised shrimp, which have slashed prices they are able to get at the boat.
Imports have grown to the point that some 87 percent of all shrimp consumed in the United States came from other countries by 2002, and probably grew since then.
The wholesale price is said to be at a 40-year low.
Prices down, fuel costs up In Dickinson, longtime shrimper Richard Moore says prices are off by 40 to 50 percent because of imports that started to take off in late 2000. Meanwhile, the cost of diesel fuel has risen.
"This industry has been cut in half," he said, adding that the duties won't cure everything, but they are a start.
The U.S. shrimp industry is in dire straits, said Eddie Gordon, president of the Southern Shrimp Alliance,representing the eight states. Companies are closing, unemployment is rising and boats are being repossessed,he said.
"The key reason is the high and increasing level of dumped shrimp entering the U.S. market," he said in a prepared statement.
Blaming the middleman The shrimpers say fair pricing won't necessarily cause an increase at retail and will not limit the amount that can be imported. They cite a study indicating thatretail hasn't gone down like wholesale.
"Too many people in the middle are making all the money," Moore said.
Trade has to be unfair in order to be subject to duties. The government will study the costs to raise shrimp in the six countries and what these shrimp are sold for at home.
The anti-dumping tactic has been used successfully in recent years by catfish farmers who went after Vietnam,crawfish raisers in Louisiana who got duties on frozen crawfish tails from China, and honey producers who got duties on Chinese imports.
In the case of catfish, the farm price has risen to 72 cents a pound in March, compared with 58 cents a pounda year earlier, mostly because of duties that kicked in late last year. Frozen catfish fillets, the specific target of duties, were $2.68 a pound in May, compared with $2.42 a year ago, according to government statistics.
nelson.antosh@chron.com
BLESSING OF THE FLEET & BOAT PARADE AUG.1, 2004
"celebrating the boats and crews who bring us the worlds finest shrimp, American wild-caught shrimp".
http://www.kemah.net/blessing/
Bump and fight Dumping!
I know the shrimpers are in trouble , but I sure was enjoying the lower cost of the product. I have been able to eat much more shrimp this year than previously, and its been great.
Congressman Ron Paul
(Kemah, is part of 14th district)
Urges Commerce Department to
Investigate Foreign Shrimp Subsidies
01/21/04
Washington, DC Congressman Ron Paul recently joined several of his
House colleagues urging action by the Commerce Department to protect
the troubled domestic shrimp industry. Paul and other members of
Congress, who represent thousands of shrimpers in Texas and
Louisiana, sent a letter to Commerce Secretary Donald Evans and U.S.
Trade Representative Robert Zoellick demanding an investigation into
taxpayer subsidies that benefit foreign shrimpers at the expense of
our domestic industry.
The 14th congressional district is home to many shrimpers, from
Galveston to Aransas counties. Since 2000, shrimp imports from
targeted countries have increased a whopping 72%, while prices have
fallen 35% in the same period. This flood of subsidized imported
shrimp has drastically reduced revenues for the vital Gulf coast
shrimp industry.
"Domestic shrimpers up and down the Texas Gulf coast have been
devastated by cheap imported shrimp," Paul stated. "Congress needs
to remove the burdensome regulations that make it so difficult for
our shrimpers to make a profit, but we also need to eliminate
foreign aid subsidies to the nations that compete directly with our
shrimp industry. It's unconscionable that a struggling shrimper in
south Texas has to pay taxes that subsidize his foreign
competitors."
Paul introduced the "Shrimp Importation Fairness Act" in January
2003 to help level the playing field between the foreign and
domestic shrimp industries. The bill places a moratorium on costly
federal regulations that hamper the domestic industry, while ending
taxpayer subsidies to seven countries responsible for nearly 70% of
the imported shrimp consumed in the U.S.
Instead of raising the price of shrimp, why not just have the government write a check to the US shrimpers to subsidize their industry? If government thinks this is such a grand idea, why doesn't the government write the check? After all, if the purpose of the tariffs is to keep the shrimpers in business, then the net effect is the same. In addition, those too poor to afford the new prices would still be able to afford shrimp.
Shrimp vouchers!
If welfare through tariffs is good enough for the shrimpers, then why not 'shrimp vouchers' for the poor?
"Paul stated. "Congress needs
to remove the burdensome regulations that make it so difficult for
our shrimpers to make a profit, but we also need to eliminate
foreign aid subsidies to the nations that compete directly with our
shrimp industry."
PAUL INTRODUCES LEGISLATION TO
HELP COMMERCIAL SHRIMPERS
10/09/2002
Washington, DC: Congressman Ron Paul today introduced legislation designed to aid the struggling domestic shrimping industry. HR 5578, the Shrimp Importation Financing Fairness Act, places a moratorium on restrictive regulations burdening the shrimping industry. The bill also puts an end to taxpayer-funded subsidies that benefit foreign shrimpers at the expense of domestic jobs.
"Current federal policies place American shrimpers at a competitive disadvantage in the international marketplace," Paul stated. "First, our shrimpers face far too many burdensome regulations- regulations that don’t affect foreign competitors. Second, we subsidize foreign shrimpers with American tax dollars, through foreign aid payments and trade financing schemes like the Overseas Private Investment Corporation and the International Monetary Fund. This misguided approach has had a devastating effect on commercial shrimpers in the Texas gulf coast and beyond."
Paul’s bill suspends new federal regulations on domestic shrimpers, who already comply with onerous environmental restrictions and endangered species rules. 70% of the shrimp consumed in the U.S. is imported from nations that do not operate under the same rules as American shrimpers. China, Ecuador, Thailand, Vietnam, India, Indonesia, and Brazil exported more than 20 million pounds of shrimp to America during the first months of 2002. Paul’s legislation would eliminate all foreign aid to these seven nations until they dramatically reduce the amount of shrimp exported to America.
"The shrimping industry is a vital social and economic force in coastal communities across America," Paul concluded. "Our shrimpers need immediate regulatory relief, combined with the elimination of subsidies for foreign competitors. It is time for Congress to rein in regulation-happy bureaucrats before price depression destroys the domestic shrimping industry."
Sunday August 1 2004 will be the 36th Annual Blessing of the Fleet – Decorated shrimp boats pleasure craft file past the Cadillac Mexican Restaurant where the officiating priest & minister bless each of the boats.
Other thing about shrimping is that it's a disaster to fish species; can't catch shrimp without catching huge numbers of juvenile fish that are killed.
That's what I want for breakfast. Steamed shrimp and saffron rice!
"Paul stated. "Congress needs to remove the burdensome regulations that make it so difficult for our shrimpers to make a profit, but we also need to eliminate foreign aid subsidies to the nations that compete directly with our
shrimp industry."
Fine, let's reduce regulation and end foreign aid, but what does that have to do with placing tariffs on imports?
Me,too. I can buy a two pound bag of good-sized frozen shrimp (uncooked, still in the shell) for $10. In fact, I may just stock up this weekend!
Shrimping is environmentally destructive, and severely reduces stocks of sport fish, including redfish, black drum, and flounder. The sooner we get rid of the Gulf shrimping fleet, the better.
I have a good friend in Texas who is leading a conservation initiative to buy up shrimping licenses and retire them. He's retired a bunch so far. I suspect these low prices will tempt more shrimpers to sell their licenses.
Fewer shrimpers = better fishing!!!!
It’s not as if foreign shrimpers can put our fleets out of business and then take over our waters. They can’t fish in our waters, and as far as I know, shrimp are a near shore species. So if shrimpers are forced to become fishing guides or boat builders or whatever, that’s life. They can deal with it. I don’t think that we should enlarge the government to manage it for them.
I think was Paul is saying is recipients of US aid funnel it into supporting their dollar-earning export industries. This happens with Indian iron and steel products.
Oh, and those shrimpers? Wild shrimp will still have a market if they work at it. Farm rasied salmon is dirt cheap, but Google(TM) Wild Irish Salmon and see what it sells for. This country has millions of sheep but fancy retaurants feature New Zealand lamb. Texas shrimpers, instead of trying to compete on price with an agricultural product need to compete on quality. The San Antonio Express (Lack of) News ran a multi day story about Texas Shrimpers a few months ago, and raised this very point. One of the shrimper's spokesmen disdainfully stated that he was offended at the idea that they should have have to market their shrimp. In his world shrimpers pull up to the dock and get a check.
Last nigh one the radio I heard an ad for a restaurant that featured "Wild Texas Gulf Shrimp" so perhaps there is some hope.
Other thing about shrimping is that it's a disaster to fish species; can't catch shrimp without catching huge numbers of juvenile fish that are killed.
Especially when they drag nets inside of the third sand bar.
I think it far more likely that Ron Paul is just using this to take a shot at government regulation and foreign aid. This is, btw, one of the few instances where I agree with the man. He's far more likely, in my opinion, to be a nut-case.
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