February 3, 2011

US shrimp farmers push to maintain import tariffs

US shrimper farmers said Tuesday (Feb 1) that they need the US to extend tariffs imposed on shrimp imports from Asia and South American countries, citing the hurricanes and Gulf oil spill damages.

Shrimpers said they spoke at a hearing before the US International Trade Commission in Washington, D.C. The commission is looking into whether the tariffs should be renewed five years after they were first imposed on shrimp imports from India, Thailand, Brazil, Vietnam and China.

The ITC is expected to vote on extending the tariffs until 2016 as early as mid-March.

The tariffs were initially imposed after the ITC found that imports had injured, or were likely to injure, US shrimp processors and fishermen who claimed imports were being dumped on the US market at unfair prices and driving them out of business. The tariffs have netted more than US$186 million for the US industry.

The Southern Shrimp Alliance, a coalition of shrimp fishermen and businesses, says removing the duties would damage the domestic industry, which it says is struggling to recover from hurricanes, the recent Gulf of Mexico oil spill, high fuel prices and the economic downturn.

James Blanchard, a Louisiana shrimper, said that the US$2 billion shrimp industry is struggling.

"Even with the help of the tariffs and cost reductions, the industry is not doing well these days. I have seen loading docks and processors disappear over the years, and the fleet keeps getting smaller ... If the tariffs are removed, things would be even worse for us," Blanchard said.

Jonathan D. Appelbaum, the president of Penguin Frozen Foods Inc. in Northbrook, Ill., said his shrimp distribution business had expanded because of the tariffs into new markets in California, Oregon, Colorado and Washington. "The expansion of our retail efforts has to a great extent been made possible by the tariffs," he said.

US shrimp accounts for about 10% of the all the shrimp consumed by Americans.