The Department of Commerce yesterday announced preliminary tariffs on shrimp imported from China and Vietnam. Thailand, Brazil, Ecuador, and India may receive similar treatment later this month. According to the San Francisco Chronicle,

tariffs for Chinese companies range from nothing to 112 percent, the average tariff will be 49 percent; Vietnamese company tariffs will range from 12 to 93 percent, with an average rate of 16 percent. The tariffs are calculated for individual companies based on financial information they provided the Commerce Department.

Such tariffs are jumbo size, and will very likely increase retail prices substantially, since these six countries account for most of the shrimp imported to the United States market.

The ostensible reason for the tariffs is to protect the domestic shrimp industry. Although some industry insiders not that enough loopholes exist (for the moment, at least) to blunt the initial impact, the entire effort is mistaken, and ought to be scrapped.

Domestic shrimp can be sold fresh, and justify a premium price on that basis. It does not need protective tariffs to flourish. Tariffs are, after all, taxes, and raising taxes to benefit some at the expense of many is not often a good idea.But most importantly, making shrimp expensive threatens to take us back to the bad old days of shrimp as a luxury item.

When I was growing up in the 1950s, shrimp was something one experienced rarely. Perhaps a shrimp cocktail at a celebratory dinner, or a special treat at a Chinese restaurant. But so expensive as to be precluded as everyday fare.

Thanks to commercial shrimp farming in tropical countries, frozen shrimp can be had at retail for prices roughly the same as decent quality beef today —— at least if you buy it at Costco, Trader Joe's, an Asian grocery, or some other outlet which does a large volume business in 2 pound bags of frozen shrimp.

Shrimp is low in fat, harmonizes with many different flavors, and tastes great as cold leftovers. Along with the internet, TiVo, DVDs, and cheap foreign travel, inexpensive  abundant shrimp is one of the developments which argues that some progress in material culture actually pays off in better lives for the many.

Save our shrimp!

Posted by Thomas  07 07 04