Adjusting to Trade Policy: Evidence from U.S. Antidumping Duties on Vietnamese Catfish

In 2003, after claims of dumping, the U.S. imposed tariffs on imports of catfish from Vietnam ranging from 37 to 64 percent. As a result, Vietnamese exports of catfish to the U.S. market sharply declined. Using a panel data of Vietnamese households, we explore the responses of catfish producers in the Mekong delta between 2002 and 2004. We find that, over this period, the rate of growth of income was significantly lower among households relatively more involved in catfish farming in 2002. In addition, the antidumping shock triggered significant exit from catfish farming. Households adjusted by moving out of catfish aquaculture and into wage labor markets and agriculture but not into other aquaculture activities. Finally, we find evidence of rigidities in production and of spillovers into non-aquaculture household economic activities.

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