January 2, 2007

WTO to probe India-US dumping duty row

The WTO has set up a panel to investigate the controversy over the US levying anti-dumping duty on Indian shrimp exports.

The issue involves Indian exporters paying anti-dumping duty ranging from 4.94 percent to 15.36 percent for shipments to the US. India considers the same as illegal.

India complained to the WTO's Dispute Settlement Body (DSB) that the amended bond directive and laws and regulations of the US referred were inconsistent with several provisions of the Anti-Dumping Agreement, the Subsidies and Countervailing Measures Agreement and the GATT.

The US continues to impose the WTO-inconsistent continuous bond requirement on importers of certain warm water shrimp from India in an arbitrary and discriminatory manner, India said.

The US had imposed the anti-dumping duty after a probe by its Commerce Department in 2004 led to a finding that shrimps were being exported at "less than fair value."

The duty was also levied on Vietnam, Thailand, China, Ecuador and Brazil.

India said it was "compelled to seek recourse to dispute settlement" after a failure by the US to address its concerns.