January 29, 2010

US tariffs on Thai shrimp likely to stay

 

Two American shrimp industry groups have clashed over the potential removal of US tariffs on Thai shrimp imports, but the scale might be tilted toward the side that wants the tariffs to stay.

Federal officials said the Southern Shrimp Alliance has not proven it represents enough of the domestic shrimp industry.

The Southern Shrimp Alliance represents fishermen and processors in eight shrimp producing states, and wanted the elimination of a tariff on Thai shrimp in exchange for a settlement payment from the country.

The Southern Shrimp Alliance was approached by Thailand with an offer of about US$100 million or more, to be distributed throughout the US industry if the tariffs on Thai shrimp are eliminated. Alliance board members said getting rid of the tariff in exchange for the payment would be in the industry's best interests, especially since the Department of Commerce will be reviewing all tariffs later this year to see if they are still needed.

If the tariffs against Thailand are eliminated as a result of the review, the shrimp industry will get nothing. Federal officials will begin working on that in February. The alliance also said it will support keeping all the tariffs when the review is undertaken.

The American Shrimp Processors Association, which represents packers and peelers in Louisiana and elsewhere, is strongly against the removal of the tariff. The association said that its membership is big enough to block the removal attempt.

The tariff removal has been a contending issue to local shrimp producers, who have complained for years that a flood of cheap imports is forcing them out of business. Some US processors and shrimp producers oppose lifting the tariffs in fear that a vital protection for US shrimp prices would be lost.