The Southern Shrimp Alliance (SSA) is a non-profit alliance of members of the shrimp industry in eight states

U.S. Shrimpers Applaud Senator Cassidy's Push to Halt U.S. Funding of Foreign Shrimp Aquaculture

U.S. Senator Bill Cassidy (R-LA), a senior member of the Senate Finance Committee, has urged Treasury Secretary Scott Bessent to block U.S. taxpayer funding for foreign shrimp aquaculture projects through International Financial Institutions (IFIs).

In a letter, Senator Cassidy called for the Treasury, in coordination with the State Department, to take immediate action to prevent future funding that would exacerbate the financial crisis facing U.S. shrimpers. The Southern Shrimp Alliance, representing the U.S. shrimp industry across eight states, strongly supports Senator Cassidy's initiative.

Since 2000, Ecuadorian shrimp producers and exporters have received at least $195 million in development funding for shrimp aquaculture, fueling a 150% surge in Ecuadorian shrimp exports to the U.S. within four years—adding 264 million pounds of imported shrimp to the U.S. market. Similar IFI funding has benefited shrimp industries in India, Indonesia, Vietnam, and other nations, contributing to a global oversupply that has driven wholesale shrimp prices to historic lows amidst general commodity price inflation.

IFI-funded shrimp projects are concentrated in India and Ecuador, which supply nearly 70% of all U.S. shrimp imports and are the largest competitors to the U.S. shrimp industry.

Consequently, American shrimpers, predominantly multi-generational, family-owned businesses, are facing severe financial hardship. NOAA Fisheries data reveals a dramatic decline in the total value of U.S. shrimp fishermen's catch, from $522 million in 2021 to $268 million in 2023, with similar levels persisting in 2024. This rapid price collapse has forced numerous American shrimpers out of business, while others remain docked. Ironically, consumer shrimp prices have increased during this period, according to the Sustainability Incubator.

A Contradictory Use of U.S. Trade Relief Funds

Senator Cassidy highlighted a significant policy contradiction: trade relief duties collected on subsidized Ecuadorian shrimp, intended to counteract unfair trade practices, are not directed to support American shrimpers. Instead, they contribute to the U.S. Treasury's general revenue, which indirectly finances IFIs that bankroll overseas shrimp aquaculture expansion.

<-- The total number of IFI-funded shrimp and aquaculture projects increased significantly in the past decade, pumping billions of dollars into foreign shrimp production.

Despite numerous laws mandating the Treasury Department to oppose projects that harm U.S. industries, new IFI-backed aquaculture projects continue to be approved, as recently as June 2024, further benefiting foreign shrimp producers at the expense of U.S. shrimpers.

"It's infuriating that we must implore our government to cease using taxpayer funds to undermine American shrimpers," stated John Williams, executive director of the Southern Shrimp Alliance. "Under previous Administrations, the U.S. Treasury has disadvantaged our well-regulated shrimp industry. We commend Senator Cassidy's decisive action to prevent these 'America-Last' policies from destroying our iconic industry and the coastal communities that depend on us. We are hopeful that Secretary Bessent, known for his 'America-First' approach, will put an end to this counterproductive financing."

Aligning Policy with U.S. Economic Interests

Senator Cassidy's call to scrutinize IFI funding aligns with the Trump Administration's executive order to realign U.S. foreign aid and supports ongoing efforts by Secretary of State Marco Rubio to reform USAID funding, ensuring it does not harm American businesses.

IFI-funded shrimp projects correlate with a surge in shrimp imports to the U.S. market and surplus supply that exceeds demand.

The Southern Shrimp Alliance urges Congressional and U.S. Treasury oversight of U.S. representatives' voting records to ensure U.S. opposition to new IFI funding of foreign shrimp aquaculture development projects that harm American shrimpers.

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