The U.S. Resumes Shrimp Trade with Mexico After 5 Months

Published 2021년 11월 16일

The U.S. had banned imports of shrimp from Mexico on April 30th, 2021. After this import ban, the import volume fell by 67%. The ban was a result of Mexico’s inability to comply with U.S. turtle protection regulations. However, after a few months of cooperation, on October 19th, the US government resumed the shrimp import from Mexico submitted all due certifications and clearances to ensure protection measures for sea turtles.

The United States (U.S.) is the fastest-growing shrimp importing country in the world. The volume of imports increased by 17% during 2016-2020, from 2,450 to 2,870 tons in 2020. However, the import value fell by 13% during the same period. In 2020, Ecuadorian shrimp represents 25.6% of the market share in the US shrimp market, followed by Canada (24.7%), Mexico (20.6%), Honduras (6.1%), and Norway (5.2%). IIn the past few years, domestic demand for shrimp in the US market has been increasing, and currently,, over 90% of domestic shrimp supply depends on more than 50 countries.

According to the recent data, the U.S. imported 76,440 metric tons of shrimp worth USD 664.8 million in July 2021, 16% more in value compared to July 2020. However, when the ban was imposed, imports from Mexico went down significantly by 67%. This was a result of the ban imposed on Mexico’s shrimp imports due to its inability to comply with U.S. turtle protection regulations.

Source: ITC TradeMap. HS Code: 030616

Post the ban, different Mexican bodies like the National Commission of Aquaculture and Fisheries, the Federal Bureau of Environmental Protection, and the Secretary of Navy joined forces to ensure all preventive and corrective actions were in place. If Mexico wants to export shrimps to the U.S. it needs to ensure that the shrimps are caught by deep-sea trawlers which pose no threat to turtles. Over the last months, authorities from both countries have committed to solving outstanding problems to remove all barriers to shrimp trade for the fishing season when it opens in September 2021. However, after a delay of one month, on October 19th, Mexico was re-authorized to export shrimp into the U.S. with all due certifications and clearances to ensure protection measures for sea turtles.

It was necessary for both countries to resolve the issue and resume the trade as the shrimp trade relations between the U.S. and Mexico are estimated to be worth USD 300 million. On one hand, the U.S. relied heavily on imports for meeting their domestic demand and on the other hand, Mexico’s shrimp fishermen send about 80% of their exports to the United States, with smaller quantities going to countries such as China, Japan, Malaysia, Singapore, and France. With the opening up of Mexican imports, shrimp exporting countries like Ecuador and India will have to face competition to establish their market in the U.S.