This case is a great example of attempts to protect a national industry against international competition. Catfish are farmed in the southern U.S. and in Vietnam. The Vietnamese production has some competitive advantages including a more conducive climate, lower governmental restrictions, and lower labor rates. So even with transportation costs, Vietnam exports catfish to the United States at low rates. The U.S. catfish growers fought back using a variety of means. They tried to limit the use of the name “catfish” and petitioned for increased taxes on imported fish and even tried to bring into question the safety of overseas fish. The U.S. producers have not been successful in limiting imports and have even been caught up by their own efforts. A key point is that trade between nations cannot be viewed just by one industry. Vietnam is the third largest export market for U.S. beef. So, if we successfully limit the importing of catfish, will Vietnam retaliate by limiting the importing of beef?

Questions

1. List the advantages and disadvantages for the U.S. protection of its catfish industry.

2. As you read through the chapter, list the protective measures (instruments) the United States has not used to protect its catfish industry. Briefly explain why each would or would not be successful.