The Hindu : Business : U.S. imposes anti-dumping duties on shrimp imports

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Thursday, Jul 08, 2004

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U.S. imposes anti-dumping duties on shrimp imports

WASHINGTON, JULY 7. Ignoring strong objections from the restaurant associations and importers, the U.S. Department of Commerce has on Tuesday imposed tariffs on shrimp imports from China and Vietnam, saying a preliminary probe indicated that the two nations were `dumping' at artificially low prices.

The duties will range from 7.67 per cent to 112.81 per cent on shrimps from China and between 12.11 per cent and 92.13 per cent on imports from Vietnam. The Commerce Department said its preliminary probe found that with the exception of one Chinese producer, all other producers of frozen and canned warm-water shrimp were being sold `at less than fair value.'

The duties may be adjusted but will be collected until a final ruling by the quasi-judicial international trade Commission next January. The industries petitioning in the case had been seeking duties of between 30 per cent and more than 200 per cent for shrimp and prawns from Brazil, China, Ecaudor, India, Thailand and Vietnam. A decision against the four other countries was expected on July 29.

Altogether, shrimp imports from the six targeted countries account for about two-thirds of total shrimp consumption in the U.S. The DOC will make its final determinations later this year, and rates may increase or decrease from the preliminary determinations. The International Trade Commission is expected to make a final determination on the question of whether imports have injured the U.S. industry by mid-January.

The Commerce Department denied the domestic shrimpers demand that these duties be applied retroactively to Vietnam, but accepted the demand for certain China exporters.

The U.S. shrimp industry, importers have pointed out, can only mean a small proportion of the demand for shrimp in the U.S.

However, under a peculiar law called the Byrd Amendment, anti-dumping duties collected by the Government do not go to the treasury; the money is distributed to the complainants. Importers have pointed out that this law is unique to the U.S. and is totally indefensible but the protests have been of no avail. The CITAC/ASDA (Consuming Industries Trade Action Coalition/American Seafood Distribution Association) Shrimp Task Force reacted by announcing that it would continue to fight against dumping duties. It called any duty on imported shrimp a needless tax on American consumers. The Commerce Department's preliminary calculation of dumping rates, the coalition said, is unjustified and troubling. ``The Bush administration has made a misguided trade policy decision that could have serious adverse consequences," said Wally Stevens, Chairman of the Shrimp Task Force. — PTI

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