Policy Analysis: Shrimp Tariff (a mini case-study)
When we consider effects of free trade, we must specify what, precisely, is the alternative. Here is a real-world example: The Shrimp Tariff. In May of 2018, the Southern Shrimp Alliance (SSA) petitioned for increased tariffs on imports of shrimp from China based on health concerns linked to imported shrimp (see SSA 2018); it sent a letter of support for increased tariffs on shrimp imports from China in September 2019. In September of 2020, USDA announced $500+ in compensation for members of the fishing industry hurt by retaliatory tariffs (tariffs levied in retaliation for our tariffs); see USDA0920. Finally, the SSA noted (SSA1020) a massive reduction in FDA’smonitoring of imported shrimp for public health threats “reflects policy choices severely weakening the agency’s oversight of imported seafood.”
Before you comment on these recent items, it is wise to consider the history of tariffs in this industry over the past 15 years. Please read the shortnews articles Brazilshrimp2004, Bigshrimp2005,LAShrimp2018. To review tariffs, see Class12, mod 2, slide 9) or corresponding section of Mankiw,ch 9.
Instructions: please answer in about 2 typed pages using this file as a template so you don’t skip any parts.Refer to the articles as appropriate. Please write clear, succinct answers.
Part 1. Goals. Answer each part in 2 or 3 sentences.
Part 2. Costs. According to the New York Times Brazil article, a representative of US shrimpers claims that US shrimpers have lower costs of producing shrimp than overseas competitors who farm shrimp.
Part 3. Assessment.
Part 4. Public Health. What do you make of the May 2018 request by the SSA for additional tariffs on shrimp? Does public health concerns seem to motivate the Trump Administration, judging by the commitment to import anti-biotic monitoring described in SSA1020, circled for you in blue on page 4.
Extra credit (up to 3 points): Do you think Rodrik’s approach would improve this process? Explain
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