The Hindu : Business : U.S. upholds tariffs on shrimp

Online edition of India's National Newspaper
Saturday, Jan 08, 2005

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U.S. upholds tariffs on shrimp

NEW ORLEANS, JAN. 7. The U.S. International Trade Commission on Thursday cleared the way for tariffs to be imposed on shrimp imports from six Asian and South American countries, but expressed concern that tariffs on India and Thailand would burden the tsunami-ravaged countries.

The commission upheld last February's preliminary finding that imports had injured, or were likely to injure, U.S. shrimp processors and fishermen. The panel reaffirmed with a 6-0 vote that frozen shrimp have hurt the U.S. industry but voted 4-2 to scrap tariffs on canned imports, which make up about 0.4 per cent of imports.

The ruling was the last major step before tariffs on imports from Brazil, China, Ecuador, India, Thailand and Vietnam become final.

The year-long case was brought by Southern shrimpers, who claimed that imports were being dumped on the U.S. market at unfair prices and driving them out of business.

At almost every stage, federal regulators have sided with U.S. shrimpers and found that dumping occurred and that imports had injured, or threatened to injure, the domestic industry.

Duty rates for the six countries range between 2.3 per cent and 112.8 per cent.

Brazil faces duties between 9.6 per cent and 67.8 per cent; China between 27.8 per cent and 112.8 per cent; Ecuador between 2.3 per cent and 4.4 per cent; India between 5 per cent and 13.4 per cent; Thailand between 5.7 per cent and 6.8 per cent; and Vietnam between 4.1 per cent and 25.7 per cent.

Dumping occurs when a product is sold in the U.S. at a price below a producer's sales price at home or at a price lower than the cost of production.

From the beginning, shrimp importers and exporters have fought the dumping case, claiming that there was no evidence of dumping and that duties would do little to fix the underlying problems in the domestic industry. — AP

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