US-China Commission Report - Fatal System Error

SECTION 4: A CASE STUDY OF THE
LOCAL IMPACT OF TRADE WITH CHINA:
SEAFOOD IMPORTS FROM CHINA INTO
LOUISIANA AND THE U.S. GULF COAST,
AND RELATED SAFETY ISSUES
‘‘The Commission shall investigate and report exclusively on—
...
‘‘ECONOMIC TRANSFERS—The qualitative and quantitative
nature of the transfer of United States production activities
to the People’s Republic of China, . . . the impact of such transfers
on United States national security, . . . and the effect of
such transfers on United States economic security and employment.
. . .’’
China’s Dominant Role in Seafood Exports
Since its 2001 admission to the World Trade Organization
(WTO), China has become the world’s largest exporter of seafood
and the largest volume supplier of seafood to the U.S. market. This
development is due, in large part, to China’s adoption of industrial
fish farming and Chinese government policies that support the industry
and encourage fish exports. At the same time, the U.S. seafood
market has switched from relying on wild-caught fish taken
from domestic waters to an overwhelming reliance on imported seafood,
particularly in the case of shrimp, the most popular seafood
in the United States. China is now the largest supplier of both
shrimp and finfish to the U.S. market. China maintains the world’s
largest fishing fleet 338 and ranks as the world’s largest purveyor
of wild-caught fish. Even more important for the U.S. market, however,
China is the world’s largest producer of farmed fish. 339 More
than a billion pounds of Chinese seafood, valued at $1.9 billion,
were imported into the United States in 2006, much of the seafood
from an estimated 4.5 million fish farmers and one million processors.
In 2007, 23 percent of imported fresh and prepared fish
came from China. One in five pounds of fish sold in the United
States came from China. 340
The challenge to the United States posed by Chinese fish imports
is both economic and health related. The U.S. industry has responded
to the increase in Chinese imports by filing formal unfair
trade cases against Chinese exporters, with some limited success.
Antidumping duties have been levied against imported shrimp and
crawfish from China, but they have not stemmed losses in market
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