Waste of the Day: Over $1 Billion for Foreign Shrimp

Topline: The U.S. contributed to over $1 billion spent promoting shrimp farming in foreign countries from 1998 to 2023, which members of Congress say may have violated a federal law protecting American industries from overseas competition.

The shrimp scandal

Key facts: The money came from various United Nations agencies that the U.S. helps fund, including the Food and Agriculture Organization and the International Finance Corporation, according to the Southern Shrimp Alliance, an advocacy group representing American fishermen.

More than $500 million went to companies in Ecuador. The Philippines, China, India and Indonesia each received more than $100 million. Peru, Mexico, Belize and other nations in Latin America and Southeast Asia received funds as well.

U.S. representatives to the UN have supported or abstained from voting on shrimp initiatives 17 times since 2006 and have never voted against a proposal, the Southern Shrimp Alliance claims.

Domestic shrimp catches were worth $522 million in 2021 but only $268 million in 2023. The Southern Shrimp Alliance argues that foreign competition is one of the main reasons for the decrease, as excess supply drives prices down. Ecuador has increased shrimp exports to the U.S. by 150% in the last four years.

Existing law protects American commodities

In a November 2024 oversight letter, Reps. Clay Higgins, James Comer and Troy Nehls argued that America’s voting record violates a 1986 statute requiring the Treasury to “use the voice and vote of the United States to oppose any assistance … if export of such commodity … would cause substantial injury to the United States producers of the same, similar, or competing commodity.” 

Comer, Higgins and Nehls asked the Government Accountability Office to analyze the full impact. 

Nehls and Higgins also co-sponsored the Save Our Shrimpers Act along with 14 other members of Congress. The bill was reintroduced this March and would prohibit any international financial institutions from spending U.S. funds to support foreign shrimp farming.

Search all federal, state and local government salaries and vendor spending with the AI search bot, Benjamin, at OpenTheBooks.com. 

Summary: There are dozens of ways to cook shrimp, but taxpayers may struggle to afford any of them if their money is constantly being shipped overseas.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com.

This article was originally published by RCI and made available via RealClearWire.