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Shrimps in a soup?
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The ongoing `shrimp wars' between USA, and a host of exporting nations that includes India, threatens the prospects of our seafood exports.
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WITH THE ongoing `shrimp wars,' between big fish USA and the school of China, Vietnam, Brazil, Thailand, Ecuador and India, one wonders , if it is yet another of America's desperate attempt to control the market. The petition filed to its Department of Commerce to levy duties on shrimp imports from six specific countries (all of which, incidentally are developing nations) is a device to dominate them.
So, when the thousands of shrimpers, processors and distributors from North Carolina to Texas amalgamated to fight the increasing shrimp imports to the USA, on claims of gobbling up the shrimp market, it leaves one pondering. More so, when the SSA (Southern Shrimp Alliance), on behalf of its petitioners, claims dumping of cheap and subsidised shrimp into the USA (for which they supposedly offer evidence of dumping margins from 30-200 per cent), it has simultaneously chosen to overlook its friendly neighbours Mexico and Canada, its largest small shrimp suppliers. But, as far as the claims on the subsidies are concerned, they remain obscure and indistinct.
Indian seafood entrepreneurs profess the non-existence of any governmental aid, and emphasise vehement competition in a free market. Explaining this, Thomas Burliegh, Indian representative of Amende and Schultz Inc, an American seafood company says, " Indian shrimp is sold in the open market after being produced using sophisticated, cost effective technology, the profit margin of which is marginal." He further explains the weak basis on which the American producers are opposing shrimp imports from countries like India, saying, "the kind of shrimp, the SSA refers to, (which includes peeled and de-veined small shrimps and Black Tiger) are not produced in America, except for certain quantities of the `Vannmei' variety, ruling out any form of threat to these producers."
Exporters to USA explain the need for a rise in prices in the event of a duty, which "will help cover the duty costs." "In any other circumstance, it would result in the United States not being a market for direct exports from India."
With India now depending on the USA for a large chunk of its marine exports, a country that is the single largest buyer of Indian seafood with a value percentage of 29.8 per cent, the request for the import levies come as a substantial threat to the $1.25 billion business. So much so, that, "not just 100-200 per cent," says Abraham. J. Tharakan, President of the Seafood Association of India, but a duty of even 10 to 15 per cent will paralyse the Indian shrimp industry. He emphasises the drastic effect on the Indian economy, "especially on coastal states like Kerala and those culturing shrimp in and around the Andhra region."
Thus, India, along with China, Vietnam, Brazil, Thailand and Ecuador fight to salvage their marine industries, the USA appears to be on an unfounded but vehement approach to protect itself. Even at the cost of its economy! Overlooking a brazen fact, that if the conflict ends in favour of them, it would result in an indelible consequence on their consumer market. Affordable products such as Black Tiger will wage high prices for itself, causing a slump in its consumption. Seafood would no longer be an affordable item, instead a luxury product purchased by a few. Obscure as it may seem, it leaves us with little option other than to retaliate. While the International Trade Commission analyses the reports backing the petition of the SSA, it is now time to fight till justice is for once obtained.
TANYA ABRAHAM
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