The Fallacies of Shrimp Protectionism

Ludwig von Mises Institute ^ | 6/27/2004 | Don Mathew

[ari-freedom]

The U.S. shrimping industry must be thriving. Or so one would think. Only a generation ago, shrimp were all but considered a delicacy and came at a steep price, but today, fresh and frozen shrimp are readily available at grocery stores, never mind restaurants, and Americans are taking full advantage of the abundance. In 2003, Americans consumed 1.1 billion pounds of shrimp, up from 685 million pounds in 1994 and 287 million pounds in 1970.

But the U.S. shrimping industry is not thriving, it's sinking fast. The bulk of the domestic shrimp catch is harvested by trawlers in the Gulf of Mexico. According to the Southeastern Fisheries Association in Tallahassee, Florida, nearly 5,000 shrimpers trawled the Gulf a decade ago. Today, less than 1,900 do.

Why is the U.S. shrimping industry in decline when U.S. shrimp consumption is on the rise? The reason, contend domestic shrimpers, is that foreign shrimp farms are dumping shrimp on the U.S. market.

[ari-freedom]

Note to Ron Paul. :)

[traviskicks]

Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.

[JTN]

Note to Ron Paul. :)

I'm not sure how seriously you meant that, but Ron Paul doesn't support protectionism for the shrimp industry. Rather, he wants to get rid of some of the regulations that increase costs for U.S. shrimpers.

Still, a good piece.

[ari-freedom]

subsidizing industry is a form of protectionism.

I just find it remarkable that Mises.org would have an article related to the one piece of pork that everyone is jumping on Ron Paul for.

[KoRn]

Oh great. Now Shrimp at my fav Japanese steakhouse is going to go up....

[traviskicks]

lol, the straw that broke the camel’s back? :)

[Lancey Howard]

[KoRn]

"lol, the straw that broke the camel’s back? :)"

Well, it's the only place I like to eat Shrimp! lol

[RavenATB]

I grew up in the Midwest and didn’t have much exposure to gulf shrimp, until I moved to the Florida panhandle four years ago. I learned quickly that there is absolutely no comparison. A gulf shrimp is far better tasting than the imported crap. I wouldn’t have believed it if I hadn’t experienced it first hand. But, its true.

[dcwusmc]

Actually someone posted Dr Paul’s position on this issue with a bill he once introduced to aid the shrimpers: get rid of the BS fedgov regulations and stop sending U.S. taxpayers’ money to countries that subsidize THEIR shrimping industry... like the very ones mentioned in this piece. I find it an excellent way to help out our own and reduce government and spending by some amount at the same time. What’s NOT to like???

[hedgetrimmer]

Nothing is worth protecting.

[ari-freedom]

America is worth protecting...

[hedgetrimmer]

What is America?

[William Terrell]

I'd rather have my shrimp money going to American shrimp boats, giving them money they spend in America with American small businesses. Maybe my shrimp will cost even a buck more a pound, but a rising tide floats all boats.
AND, I think it dangerous to increase the wealth and power of certain countries at American expense. It's a form of danegeld, and you never git rid of the Dane.

[who_would_fardels_bear]

The only support that U.S. shrimp trawlers should be able to get is:

1) Labeling consideration: They can label their product as "Wild Shrimp", while farmed shrimp needs to be labeled "Farm Shrimp". There are some that believe that wild shrimp is inherently healthier than farmed shrimp as they are not confined in close quarters with millions of other shrimp subject to disease and polluted waters common in poorly run fish farms.

2) Small tariff to pay for more inspections of imported shrimp. If there is a current health concern with shrimp imported from countries that may not have the same quality controls as we do, then a small tariff to help employ a few more inspectors to inspect a larger percentage of the imported shrimp would be a reasonable request.

[varyouga]

There’s no substitute for fresh live gulf shrimp. Much better than lobster IMO.

The problem is that’s almost impossible to get outside gulf states. If they can have live lobster almost anywhere in the US, why can’t they do the same with shrimp?

[Doe Eyes]

Oh great. Now Shrimp at my fav Japanese steakhouse is going to go up

They serve Chinese farm raised shrimp?

[Doe Eyes]

Oh great. Now Shrimp at my fav Japanese steakhouse is going to go up

They serve Chinese farm raised shrimp?

[endthematrix]

CRIPPLED SEAFOOD INDUSTRY

September 20, 2005
Louisiana fishing industry, an industry that brings in $2.7 billion a year.

How serious for your friends and the people you see is all of this?

GERALD BRINING, Shrimper: Very serious. They’re devastated. This is how most of them all make a living on. And most of them lost all their boats from the hurricane.

SPENCER MICHELS: The dirty water has been crippling the whole fishing industry near New Orleans, which supplies one-quarter of all U.S. seafood and had been a source of culinary pride for the state.

http://www.pbs.org/newshour/bb/weather/july-dec05/shrimp_9-20.html

---

“There were $35.3 million in damages to the Mississippi fishing fleet,” said Dale Diaz, director of marine fisheries for the Mississippi Department of Marine Resources.

The fishing industry contributed $1.1 billion to the state’s economy; its post-storm contribution is still being assessed. According to the DMR, during a five-year average before the storm, Mississippi shrimp accounted for five to seven percent of all the shrimp landings in the U.S. Soon after the hurricane, it dropped to about three percent, Diaz said. “There were 933 licenses issued for commercial fishing in Mississippi before Katrina; today, there are 313,” he added. More than two thirds of the state’s licensed fishing units are engaged in shrimping.

http://www.fema.gov/news/newsrelease.fema?id=38532

[ari-freedom]

ah yes. Philosophers have pondered this question for centuries.