Evaluating the Economic Impact of Countervailing Duties on United States Warm Water Shrimp Imports

Abstract

Estimates of price and scale elasticities for U.S. consumed shrimp are derived using aggregate source country shrimp import data. It was assumed that supply was perfectly elastic and U.S. wholesalers determine the quantities imported from individual countries given the prices and preferences of U.S. consumers. Ex-ante analysis suggests that most countries levied with the countervailing duty experience declines in U.S. import demand while those countries not affected by the countervailing duty experience increases in import demand. Ex-post analysis shows the reverse to be true. Several countries impacted by the countervailing duty had increased import demand from the United States while Mexico, which was not affected by the countervailing duty, had decreased import demand. The results from aggregate level data suggest that imposing duties on specific companies within a country may not be effective if that company is not a monopoly producer or controls a significant share of the shrimp produced in that country.International Relations/Trade,