Walter R. Keithly

The Southeast U.S.A. Shrimp Industry: Issues Related to Trade and Antidumping Duties

On December 31, 2003 a coalition representing Southeast U.S.A. shrimp harvesters and processors filed a petition with the U.S. International Trade Administration and the U.S. International Trade Commission seeking relief in the form of antidumping duties from what the coalition perceived as unfair trade practices by six countries—China, Vietnam, India, Thailand, Ecuador, and Brazil. After an exhaustive investigation, an affirmative finding of dumping and injury was found, and duties were imposed on subject merchandise from these six countries. This study examines the factors that led to the petition being filed, the investigation process, and the outcome associated with the imposition of antidumping duties. Overall, the study concludes that while the duties resulted in a limited amount of trade deflection, particularly among those countries assessed with higher duties, much of the protective effect that might have been forthcoming from restricting imports from the six named countries was eroded by trade diversion to countries not included in the petition.

An Analysis of US Oyster Demand and the Influence of Labeling Requirements

Abstract In response to concerns about the morbidity rate associated with the consumption of raw Gulf of Mexico oysters, California initiated a program in March 1991 that required anyone selling raw Gulf oysters to notify potential consumers that the “consumption of raw oysters can cause serious illness and death among people with liver disease, chronic illness, or weakened immune systems.” This labeling requirement, followed shortly thereafter by similar requirements in other states, received extensive media coverage. The primary objective of this study was to consider, within the context of a complete demand system, the impact of mandatory warning labels and associated media attention on the demand for the product subject to regulation and media attention (i.e., Gulf product) as well as substitute products. Results indicate that warning labels lowered the demand for oysters originating from the Gulf and Chesapeake and increased demand for oysters originating from the Pacific and foreign sources. Results also indicate that the own-price flexibilities from all sources are inelastic and, with few exceptions, all products are gross substitutes for one another. JEL Classification Code: Q18, Q58

Location Choice Behavior of Gulf of Mexico Shrimpers under Dynamic Economic Conditions

This study uses a mixed logit model to analyze monetary and nonmonetary factors that influence location choice behavior of the U.S. Gulf of Mexico shrimpers. Shrimpers’ responses to economic conditions are compared and contrasted for two periods related to changing economic conditions in the industry. Results show that even though shrimpers are generally revenue driven in choosing a fishing site, their past experience also plays an important role. Further, changes in economic conditions appear to exhibit an influence on the risk attitudes of some shrimpers.

The Role of Bounties and Human Behavior on Louisiana Nutria Harvests

In response to nutria-linked degradation of much of its coastal wetlands, Louisiana established the Coastwide Nutria Control Program (CNCP) in January 2002. CNCP instituted, among other things, an ‘‘economic incentive payment’’ of

The Effect of Environmental Conditions and Regulatory Costs on Oyster Relaying in Louisiana

4.00 per delivered nutria tail from registered participants in the program. To examine whether this bounty has had an impact on nutria harvest and whether alternative bounty levels can, in general, generate additional harvesting activities, we developed a bioeconomic supply model that relates Louisiana’s annual nutria harvests to a suite of economic and environmental factors. Results suggested that the annual nutria harvest is responsive to both the price received per animal and costs. Results also suggested that the nutria harvest has increased as a result of the bounty, but that the initial bounty of

Buyback Programs for Capacity Reduction in the U.S. Atlantic Shark Fishery

4.00 per tail may be insufficient to achieve the state’s goal of harvesting 400,000 animals per year but that a bounty equal to

Commercial and Recreational Fisheries of the Gulf of Mexico

5.00 per tail would likely achieve the stated goal.

The Demand for Eastern Oysters, Crassostrea virginica, from the Gulf of Mexico in the Presence of Vibrio vulnificus

The transferring of preharvest oysters from restricted to approved harvest waters, a process called relaying, is one way oystermen may avoid degraded environmental conditions and increase the net return from their leases. In recent years, however, Louisiana oystermen have shown little interest in relaying. The demand for relaying permits in Louisiana, the nations leading producer of direct market oysters, was estimated using a Poisson regression model that incorporated economic factors, environmental conditions, and a discrete measure of regulatory costs. Harvest prices, input and regulatory costs, environmental indicators, and the productivity of public and private (leased) water bottoms all significantly influenced the number of permits demanded. At the margin, output prices, environmental indicators, and regulation-induced costs had the most significant impact on permit demand. In particular, the cost of regulatory compliance appears to be a major factor behind the unwillingness of Louisiana oystermen to employ relaying in their harvest activities.

Deepwater energy industry impacts on economic growth and public service provision in Lafourche Parish, Louisiana

Declining fishery stocks, increasing fishing effort and adverse market conditions have produced difficult financial situations for fishermen worldwide. Several high-valued fisheries are considered to be overcapitalized. The purchase and permanent retirement of fishing vessels and/or permits under a buyback program is one approach for reducing fishing capacity. Evidence from previous programs, however, suggests that buybacks are not a panacea for solving overcapacity problems. Whether such programs can help rebuild stocks and improve the financial condition of fleets in any specific fishery depends on a multitude of factors. We consider the potential of a buyback program for the U.S. Atlantic shark fishery.

Estimation of effort, maximum sustainable yield, and maximum economic yield in the shrimp fishery of the Gulf of Mexico

The Gulf of Mexico offers ample opportunities to both commercial and recreational fishermen. Long-term landings of most key commercial species appear to be stable. Changes in landings are often tied to regulations to manage fish stocks. For the analysis of Gulf fisheries, a 20-year period from 1990 to 2009 was chosen as inclusive of (1) pre- and post-management agency changes, (2) active tropical storm periods, (3) challenging production cost situations, and (4) high and low points in the national economy. This approach acknowledges that a species’ stock level and economic conditions of inputs and demand play roles in landings levels. A 3-year average was used to depict landings and associated value. Increasing imports has led to progressive decline in brown and white shrimp fisheries where employment has dropped from 109,000 in 2007 to 63,000 in 2009 and revenues have dropped from