Comer, Higgins & Nehls Press GAO to Assess U.S. Treasury Compliance with Law to Protect U.S. Shrimp Industry

WASHINGTON—House Committee on Oversight and Accountability Chairman James Comer (R-Ky.), Congressman Clay Higgins (R-La.), and Congressman Troy Nehls (R-Texas) are pressing the U.S. Government Accountability Office (GAO) to examine whether the U.S. Treasury Department is following legal requirements to oppose international economic assistance projects that threaten American industries, including the shrimp industry.

“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,” wrote the lawmakers. “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 U.S. Treasury Department, under 22 U.S.C. § 262h, should “…use the voice and vote of the United States to oppose any assistance by such institutions, using funds appropriated or otherwise made available pursuant to any provision of law, for the production or extraction of any commodity or mineral for export, if- such commodity or mineral, as the case may be, is in surplus on world markets; and the export of such commodity or mineral, as the case may be, would cause substantial injury to the United States producers of the same, similar, or competing commodity or mineral.” However, an initial examination of voting records since 2004 reveals that U.S. directors have supported projects 25,041 times (88.7%), abstained 2,325 times (8.2%), and opposed only 880 projects (3.1%).

“Notably, since 2006, U.S. directors have either supported or abstained from voting at least 17 times on projects involving industries that directly compete with the U.S. shrimp industry—an industry facing severe challenges due to foreign shrimp dumping. These findings raise concerns that the Treasury Department may not fully comply with this statute and, in some cases, has voted to support industries that directly compete with American businesses,” continued the lawmakers. “To ensure these policies are followed, we request that the Government Accountability Office review whether the Treasury Department has met its obligations under this statute.”

Read the letter to GAO Comptroller General Gene Dodaro here.