2. The End of Globalization? The Emergence of Protectionism in the U.S. Seafood Market

3. U.S. Seafood Imports Have Doubled in the Past 15 Years

4. While Domestic Production Has Remained Relatively Stable

5. Domestic Producers Are Suffering Fishery specific Increasing Costs of Operation –Increased Labor Costs –Increased Capital Costs –Increased Conservation Burden –Decreased Resource Availability

6. 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

7. 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

8. In the absence of tariff protections… Antidumping –Crawfish –Salmon –Catfish –Shrimp –P.E.I. Mussels –Northern Shrimp Countervailing Duties –Salmon Section 201 –Blue Crab

9. SHRIMP

10. Gulf of Mexico Shrimp Farmers Calling for Antidumping Investigation Don’t appear capable of raising funds necessary to file an antidumping case

11. CATFISH

12. Domestic Catfish Industry Called for Antidumping Investigation Don’t appear capable of raising funds necessary to file an antidumping case

13. SALMON

14. Domestic Salmon Industry has tried antidumping in the past Unsuccesful

15. 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

16. CRAWFISH

17. TRENDS? Most Cases Don’t Win Those that do don’t curb the flow of imports

18. In the absence of procedural relief, domestic producers are seeking political solutions

19. Nontariff Trade Barriers Non-science-based nomenclature rules Sanitary/Phytosanitary Country of Origin Labeling Wild vs. Farm-raised labeling

20. “All Politics is Local” The Late “Tip” O’Neal U.S. House of Representatives Former Speaker of the House

21. CATFISH Mississippi & Alabama vs. National Policy –Senator Thad Cochran Ranking Member – Senate Agriculture Appropriations Subcommittee –Senator John McCain Presidential candidate Maverick politician

22. ISSUE Statutory Prohibition on the use of the term “catfish” for anything other than North American catfish of the family Ictluridae

23. PROBLEM? There are hundreds of species, 35 families in the Order Suliformes, the order of CATFISH

24. Science vs. Politics on the Floor of the U.S. Senate The Senate voted 64-32 to keep the prohibition!

25. 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

26. Shrimp Looking at unapproved aquaculture drug issue as possible means of relief

27. 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”

28. Mandatory Country of Origin Labeling (cont.) Driven by: –Alaskan Salmon –Mississippi Catfish –Gulf of Mexico/South Atlantic Shrimp

29. 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

30. 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