Joint ventures as an export market: US groundfish

This article examines the growth of joint venture operations in the US Fishery Conservation Zone in the North Pacific since 1977. Joint ventures currently in operation are outlined and the foreign and domestic partners described. The most common joint ventures in the area are contractual joint ventures, which include over-the-side sales of fish, joint lease of processing ships and marketing, seafood trade agreements and joint ventures through US subsidiaries of foreign companies. Supply and demand factors in the joint venture market are analysed and it is pointed out that the joint ventures market does not satisfy the main principles of perfect competition. The author concludes that, because it is an imperfect market, US fishermen receive less for their fish than they would under pure competition conditions.