Trade

Case Study: Fish Processing Protectionism

Critics of protectionist trade legislation say American seafood companies are seeking Congress's help to put their competitors out of business. Here is the background:

  • A 1987 federal law prohibits foreign-built fish-processing ships from operating in U.S. waters, with a few exceptions grandfathered in.

  • American Seafoods, based in Seattle and a subsidiary of a Norwegian firm, fulfilled the act's requirements and prospered -- operating 12 factory trawlers.

  • Tyson Seafood Group, which lost $230 million last year, petitioned Sen. Ted Stevens (R-Alaska) to introduce a bill to limit the size of factory trawlers, require 75 percent domestic ownership and revoke a firm's fishing license if the operation was sold.

Stevens and several colleagues introduced S. 1221, a bill opponents say is aimed solely at American Seafoods.

The bill is supported by Tyson Seafood, Alaska's onshore fish-processing industry -- which would like to shut down oceangoing fish processors altogether -- and Greenpeace, which, observers note, simply doesn't like fishing.

Critics say S. 1221 would take property without compensation, while putting political influence above entrepreneurial talent.

Source: Doug Bandow (Cato Institute), "Trolling for Favored Fishing Protection," Washington Times, March 27, 1998.  


Home | Support Us | All Issues | Social Security | Debate Central | Contact Us

Dallas Headquarters: 12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
Washington Office: 601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
© 1997 NCPA