The duties will hit Vietnam especially hard as shrimp exports account for two-thirds of that country’s exports and 2 million people are employed in the industry.

The U.S. Commerce Department ruled that the two countries were exporting shrimp to the United States at below market prices. This is the standard dumping claim which the United States has repeatedly used to enact protectionist measures against competitors.

Rather, shrimpers in Vietnam and China tend to fish shrimp on large farms and, of course, labor costs in Vietnam and China are significantly lower than in the United States, allowing those two countries to sell shrimp cheaper. That’s not dumping, that’s comparative advantage. (Ironically, the U.S. shrimp industry complains about use of antibiotics, which is odd since that is an objection other countries frequently offer against U.S. beef and other products).

Even if the dumping claim were true, under the logic of the free trade principles that the United States pushes other countries to adopt, it shouldn’t matter. If China and Vietnam want to sell shrimp below market prices that would be rather foolish of them, but it would be a great boon to American consumers.

Source:

US slaps duties on Asian shrimps. The BBC, July 6, 2004.

Shrimp Duties May Shake The. Associated Press, July 5, 2004.

U.S. Once Again Sets Bad Example with Shrimp Duties is a post from: Overpopulation.Com

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The bank’s vice president for East Asia and the Pacific, Jemal-ud-din Kassum, says without a modern legal and public administration system in place, Vietnam’s transition to a market economy will run into trouble.

No kidding. And here I thought it was capitalism and globalism that was causing all of the problems in the developing world.

Source:

World Bank warns of hurdles to economic growth in Vietnam. Radio Australia, July 15, 2003.

World Bank: Vietnam Must Reform to Continue Economic Growth is a post from: Overpopulation.Com

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Rice prices have been in free fall since 1997, losing more than a third of their value in just 5 years. World projections show rice production continuing to increase, so the price of rice is likely to fall even further over the next few years while global consumption is projected to decline.

Under those conditions a cartel is a great idea for producers, but how do they ever expect to enforce cartel agreements? OPEC has had a nightmare enforcing its cartel agreements on oil which is a relatively easy commodity to track and exclude potential competitors (not to mention monitor violators). Since rice can be grown throughout most of the world, there is almost no way cartel efforts can succeed.

Ironically, each of the governments involved has had disastrous experience with state subsidies and internal control of food markets. Apparently they believe that if they simply try the same failed policies on a bigger scale that they might finally work. Don’t bet on it.

Source:

Rice producers in ‘cartel’ talks. The BBC, October 9, 2002.

Wacky Proposal for a Rice Cartel is a post from: Overpopulation.Com

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