The head of the U.S. House Committee on Oversight and Accountability is calling for an investigation of the U.S. Treasury Department to determine whether the government is actively opposing international funding for foreign shrimp aquaculture production, as required by law.
Committee Chair U.S. Representative James Comer (R-Kentucky), U.S. Rep. Clay Higgins (R-Louisiana), and U.S. Rep. Troy Nehls (R-Texas) have sent a joint letter asking the Government Accountability Office (GAO) – a federal watchdog organization – to examine whether the department has opposed international financial assistance sent to foreign shrimp-farming operations that threaten America’s domestic shrimp sector.
U.S. law requires the Treasury Department to use its director positions at international financial institutions like the World Bank and the International Monetary Fund to oppose economic assistance to industries whose exports could hurt U.S. producers.
The American shrimp sector claims that there is no evidence that the department has acted in compliance with that law regarding international financial support for shrimp aquaculture projects, such as those funded by the World Bank.
“It has come to our attention that the U.S. Treasury Department may not be in compliance with statutory requirements to oppose projects seeking economic assistance before international monetary institutions that pose direct competition to American industries,” the lawmakers said in the joint letter. “This role is crucial to ensure American tax dollars are not used to undermine American industries in international economic decisions while representing the United States on global financial boards like the International Monetary Fund and the World Bank.”
The lawmakers claim U.S. directors at international monetary institutions have either supported or abstained from voting on financial support for “projects involving industries that directly compete with the U.S. shrimp industry” 17 times. According to domestic shrimping representative firm the Southern Shrimp Association (SSA), international financial institutions have funded “at least eight significant projects” increasing farmed shrimp production in Ecuador since 2012, despite rapidly increasing exports to the U.S.
“The World Bank has played a central role in the oversupply of shrimp in the global market,” SSA Executive Director John Williams said in a statement. “Although Congress created safeguards to prevent U.S. taxpayer funds from being used to destroy American industries, these requirements are routinely ignored.”
In 2023, SSA released a report documenting how the World Bank, the International Monetary Fund, and other institutions are funneling billions of dollars into boosting foreign aquaculture production. The SSA also maintains a database tracking Department of Treasury votes at international institutions.
The lawmakers’ letter follows legislative efforts to shut down international financial support for foreign shrimp aquaculture efforts. Earlier this year, U.S. legislators introduced the Save Our Shrimpers Act of 2024, a bill that would explicitly ban federal funds from being made available to international financial institutions for shrimp-related projects.
“Our domestic shrimping industry is struggling due to an influx of foreign shrimp flooding our markets, often funded by U.S. taxpayer dollars,” U.S. Rep. Nancy Mace (R-South Carolina) said at the time. “This bill sets clear conditions on funding to international institutions, preventing support for foreign shrimp farming. This protects American jobs and coastal economies ... ensuring our industry can thrive.”
The legislation was supported by the SSA, the Texas Shrimp Association, the South Carolina Shrimper’s Association, the GA Commercial Fisherman’s Association, the North Carolina Fisheries Association, the US Shrimp Coalition, the Louisiana Shrimp Association, the Alabama Commercial Fishermen’s Association, and the Port of Palacios, Texas.
The bill also would have required an investigation by the GAO, similar to the one requested by Comer, Higgins, and Nehls.
