Today, in a bipartisan effort, Representative Troy Nehls (R-TX) and co-sponsors have introduced the Save Our Shrimpers Act (SOS Act), a piece of legislation aimed at safeguarding the U.S. shrimp industry. The bill seeks to prevent U.S. taxpayer funds from supporting shrimp-related activities in foreign countries through international financial institutions.
The proposed legislation arises from concerns raised by the Southern Shrimp Alliance (SSA), which last year published a research report titled A Crisis of Our Own Making. The report sheds light on the role played by international financial institutions, including the World Bank, in the expansion of excess shrimp aquaculture capacity worldwide. The report notes that U.S. taxpayers have unwittingly contributed billions of dollars to foreign shrimp aquaculture through these institutions.
The proposed SOS Act explicitly prohibits the use of U.S. taxpayer funds by international financial institutions for any activity related to shrimp farming, shrimp processing, or shrimp exports in foreign countries. The legislation also mandates an annual report from the U.S. Government Accountability Office (GAO).
According to U.S. shrimping associations, the consequences of unchecked shrimp aquaculture projects funded by international financial institutions have been severe for U.S. shrimpers. The bill notes that the encouragement of excess shrimp production has led to a surplus in world markets, including the U.S. This oversupply has significantly depressed prices received by U.S. shrimpers for their catch. According to the bill, shrimp imports to the U.S. have lost $1.5 billion in value since 2021, which the bill notes directly affects the livelihoods of shrimpers across eight states in the Gulf.
A review of international financial institution funding reveals that Ecuador has experienced a manipulated surge in shrimp production. The Save Our Shrimpers Act aims to address such imbalances and protect U.S. shrimpers from unfair competition. The International Finance Corporation (IFC) announced in December an additional $20 million loan to an Ecuadorian shrimp company, Omarsa S.A., to further boost its shrimp production.
Notably, the U.S. Executive Director objected to the IFC’s funding of Omarsa S.A., marking the first time the United States formally opposed a project benefiting a foreign shrimp industry. While U.S. opposition to international financial institution funding is rare, the IFC proceeded with the project.
“American shrimp boats aren’t tied up at the docks due to free market principles. Redirecting taxpayer dollars to fund our competition through multilateral banks is sinking our industry,” said John Williams, Executive Director of SSA in a statement. “We deeply appreciate the leadership of Representative Nehls and his staff, the bill’s co-leaders, and the supporting co-sponsors of the Save Our Shrimpers Act for demanding that federal funds no longer be used to injure American commercial fishermen.”
In summary, the intent of this bill is to curb international funding for foreign shrimp-related activities. In doing so, the legislation aims to foster a level playing field and preserve the vitality of the U.S. shrimping industry.
Congressman Troy E. Nehls (R-TX-22), Congressman Clay Higgins (R-LA-03), Congressman Vicente Gonzalez (D-TX-34), Congressman Garret Graves (R-LA-06), along with Congressman Mike Ezell, Congresswoman Nancy Mace (R-SC-01), and Congressman Barry Moore (R-AL-02) will be introducing the bipartisan Save Our Shrimpers Act of 2024.
Cosponsors include Representatives Byron Donalds (R-FL-19), Randy Weber (R-TX-14), Brian Babin (R-TX-36), Russell Fry (R-SC-07), Anna Paulina Luna (R-FL-13), Gus Bilirakis (R-FL-12), and Julia Letlow (R-LA-05).
This legislation is also supported by the Southern Shrimp Alliance (SSA), Texas Shrimp Association, South Carolina Shrimper’s Association (SCSA), GA Commercial Fisherman’s Association (GACFA), N.C. Fisheries Association, Inc. (NCFA), US Shrimp Coalition (USSC), Louisiana Shrimp Association (LSA), and the Alabama Commercial Fishermen Association, LLC.
The press release and signed bill can be found on Congressman Nehl's website, here.
