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There's A Catch In This Offer Of A Bailout For Shrimpers
Published: Jan 1, 2005


The Bush administration generally supports free trade, but the Commerce Department recently imposed tariffs on the six countries that supply 75 percent of the shrimp Americans consume each year.

The government sided with shrimp producers from eight states - those fishermen who catch wild shrimp along the Gulf and South Atlantic coasts - and against importers - retailers and seafood distributors who say the tariffs will increase their costs.

So the importers are offering up to $100 million to the shrimpers in the next five years. They're calling it a helping hand in tough economic times.

But the offer came only after the Commerce Department approved tariffs for farm-raised shrimp exported from China, Vietnam, Thailand, Ecuador, Brazil and India. And there's a catch: Shrimpers would have to disavow the need for the tariffs.

So the offer would not have come without the tariff threat, proving the Commerce Department made the right decision.

If it were just a matter of price, seafood distributors would have the upper hand because domestic shrimpers cannot possibly supply all of the shrimp demanded by Americans.

But the issue is more complicated. At stake is a once-lucrative industry and a way of life that is fast disappearing in the face of under priced imports. There's also the fact that most imported shrimp are grown on farms. Significant questions remain about their safety.

The truth is that imports from Asia and South America cut domestic dockside prices in half between 2000 and 2002 and cut the value of the domestic harvest from $1.2 billion to $559 million. Many domestic shrimpers went under, while others simply broke even. These losses led Congress last year to allocate $35 million in disaster relief for the industry.

The industry's deteriorating condition led shrimpers from eight states, including Florida, to form an alliance to fight for viability. With studies in hand that show Americans prefer wild shrimp and are willing to pay a higher price for it, the Southern Shrimp Alliance has developed a plan to market their catch.

But the alliance won't survive - and intermediaries will reap the profits - if importers are allowed to dump their harvest here at below-market value.

Imports are cheaper because foreign nations ignore environmental safeguards. American shrimpers' nets must have devices that allow turtles and fish to escape. But these devices cause shrimpers to lose a small amount of their catch, which puts them at a competitive disadvantage.

In addition, foreign shrimp farm operations destroy coastal mangrove habitats and use antibiotics banned here.

The shrimpers say they are free traders. It bothers them to have accepted government aid. They instinctively don't like tariffs. But with their livelihoods and way of life at stake, they could not afford not to support government intervention.

The $100 million offer changes things slightly. The tariffs should help level the playing field and give the shrimpers some breathing room, but that's not a certainty.

Now the shrimpers must consider whether taking the money, in combination with a new marketing plan designed to lure the consumers they believe are willing to pay more for wild caught shrimp, would put them on the road to profitability.

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