US Grants Green Signal to Indian Seafood Exports While Rivals Face Restrictions: Strategic Move or Trade Tactic?
In a surprising development, India’s seafood industry has received a significant boost from the United States, even as the US administration under Donald Trump has maintained high tariffs on Indian goods. The US National Marine Fisheries Service (NMFS) has officially approved India’s seafood exports for sale in the American market, effectively giving India the green light to resume full-scale shipments of shrimp and other seafood products.
Interestingly, rival exporters such as China, Mexico, and Ecuador have not received similar approvals, leaving their seafood shipments subject to restrictions and regulatory scrutiny. This has sparked speculation over why the US appears to be selectively favoring Indian seafood, particularly when geopolitical tensions and trade negotiations are ongoing.
US Selectivity: Strategic Trade Calculus?
At first glance, the approval seems purely technical, governed by the Marine Mammal Protection Act (MMPA), which requires exporting countries to ensure that their fishing practices do not harm marine mammals beyond permissible limits.
Under these regulations, nations must demonstrate that fishing operations are safe for whales, dolphins, porpoises, and seals, protecting both the species and the interests of American fishermen.
However, industry analysts suggest that the timing and selectivity of the approval may also be strategically linked to US trade and diplomatic considerations. By clearing Indian seafood while leaving China, Mexico, and Ecuador in limbo, the US could be:
Rewarding India amidst ongoing bilateral trade negotiations (BTA) and geopolitical cooperation.
Creating competitive pressure on rival suppliers, particularly China and Ecuador, by temporarily limiting their access to a key export market.
Signaling trust in India’s compliance with sustainability and marine conservation standards, thereby presenting India as a reliable and responsible trade partner.
This selective approval comes at a time when Chinese processors are increasingly sourcing Indian shrimp for re-export, highlighting the global interdependence of seafood supply chains.
India’s Seafood Exports: A Billion-Dollar Industry
In FY 2025, India’s seafood exports totaled $7.39 billion, with the United States accounting for over $2.68 billion, or roughly a third of the total. Despite this, high US tariffs of 50% have historically made Indian shrimp and seafood less competitive compared to Ecuador, Vietnam, and Indonesia.
With NMFS approval, a major non-tariff barrier for Indian seafood has now been addressed, particularly in the shrimp aquaculture sector — India’s largest export to the US.
While the tariff challenge remains, compliance with the Marine Mammal Protection Act (MMPA) enhances India’s standing as a sustainable and responsible seafood exporter, reinforcing its credibility in global markets.
Industry Perspective: A Positive Yet Partial Step
Alex K. Ninan, Vice President of the Seafood Exporters Association of India, called the move a step in the right direction, but cautioned:
While this is certainly a positive development, the persistently high tariffs continue to limit the real benefit for Indian exporters.”
Indeed, the NMFS certification primarily removes regulatory uncertainty, but price competitiveness in the US market remains constrained due to the continued tariff regime.
US Seafood Regulations: Protecting Marine Mammals
The Marine Mammal Protection Act (MMPA) is a US federal law designed to protect marine mammals and their habitats, including dolphins, whales, porpoises, and seals. While primarily applicable to US waters and fishing activities, the MMPA also imposes conditions on countries exporting seafood to the US.
Since 2017, under NMFS provisions, all exporting countries are required to demonstrate that their fishing methods minimize injury or mortality of marine mammals, aligning with US safety and conservation standards. Indian compliance with these stringent standards has been cited as a key factor behind its approval.
Implications and Strategic Takeaways
The selective clearance of Indian seafood raises questions about whether this is merely a regulatory decision or a subtle trade strategy by the US.
By allowing Indian seafood access while holding back China, Mexico, and Ecuador, Washington may be seeking to strengthen ties with India amidst broader geopolitical and trade considerations.
At the same time, the move underscores India’s growing importance as a reliable supplier of high-quality seafood in global markets, capable of meeting stringent environmental and sustainability norms.
For Indian exporters, this represents both an opportunity and a reminder of the ongoing challenges posed by tariffs and global trade dynamics.
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