Catfish proposal runs risk of trade war

U.S. catfish farmers jumped at a proposal in Congress to have Vietnamese imports considered catfish - so they can be covered by new inspection guidelines adopted last year.

WASHINGTON — It looks like catfish, it tastes like catfish and it acts like catfish.

But to American catfish farmers, the whiskered, bottom-feeding fish from Vietnam is something else — a cheap variety that is usurping the humble catfish's place on Americans' tables and threatening their livelihoods.

So after years of arguing that the Vietnamese fish isn't catfish, and winning a federal law saying as much, the American farmers are now trying to have it both ways.

Under their latest lobbying strategy, they want the Vietnamese imports considered catfish so that they will be covered by a new inspections regime that they pushed through Congress last year.

The move, an example of how influential industries work their will in Congress, could block Vietnamese imports for years and risks a broader trade war.

If the Obama administration signs off on the plan, the fish that's long been a staple of Southern cooking could unravel years of improving relations between the United States and its former enemy.

The inspections feud is the latest in a long-running battle between a $400 million domestic farm sector that raises catfish in ponds across the Mississippi Delta and a burgeoning industry in Vietnam, where fish are raised in ponds and cages along the Mekong River.

The U.S. industry — mostly located in Mississippi, Alabama and Arkansas — has had a string of successes on Capitol Hill and in Southern legislatures.

Along with winning frequent federal aid, it pushed a labeling law through Congress in 2002 that forced the Vietnamese fish to be sold in the United States under unfamiliar names such as pangasius, basa or tra.

A year later it won an antidumping case authorizing tariffs of up to 64 percent on the Vietnamese fish.

The Southern states where most catfish farming is done now require restaurants to disclose where their fish were raised.

Despite that, the value of Vietnamese imports jumped from $13 million in 1999 to $77 million last year, according to the U.S. Commerce Department.

Over the same period, U.S. production fell from $488 million to $410 million.

The inspections requirement could be the U.S. producers' silver bullet, stopping imports in their tracks. Applying to all catfish sold in the United States, it would require Vietnam to establish a complicated inspection system and demonstrate that it is equivalent to U.S. inspections, a process that could take years.

Last year the industry persuaded catfish-state lawmakers led by Sen. Thad Cochran, R-Miss., to slip the inspection requirement into a massive farm bill.

Seafood typically is regulated by the Food and Drug Administration, which administers spot inspections that are relatively easy for foreign countries to participate in.

Cochran's provision singles out catfish as the only seafood to be regulated by the Agriculture Department, which traditionally oversees only beef, pork and poultry products.

The law leaves it up to Agriculture Secretary Tom Vilsack to define what species would fall under the "catfish" definition, and that has triggered a furious lobbying campaign.

Vilsack's decision is expected soon, but a draft recommendation obtained by The Associated Press calls for the Vietnamese pangasius to be covered.

Vietnamese officials said such a move would add insult to injury. Their "catfish" industry employs 1 million people and accounts for more than 2 percent of the country's economy.

Calling the inspections a backdoor tariff, the government is hinting at consequences for U.S. exports to Vietnam.

"For the U.S. to now reverse itself to prevent Vietnamese product from entering the market appears to developing nations hypocritical," Vietnam's ambassador to the United States, Le Cong Phung, wrote in a letter to U.S. lawmakers.

Such a decision, he wrote, could "significantly impact the bilateral relations between Vietnam and the United States."

Others, such as Senate Finance Committee Chairman Max Baucus, D-Mont., are getting involved, worried that their states' interests might get caught in the crossfire.

Vietnam is now the third-largest export market for U.S. beef.