February 7, 2006

Thai shrimp farmers to file WTO complaint against US
 

The Surat Thani Shrimp Association said a US bond requirement for Thai shrimps imported into the US amounted to double taxation and was against WTO regulations.

Part of US anti-dumping penalties imposed for Thai shrimp require importers to place a bond equivalent to a 5.95-percent duty on shrimp they import from Thailand, based on the previous year's shipments.

Aekapoj Yodpinij, the association's president, urged the Thai government to make a formal complaint to the World Trade Organization over a bond set by the United States.

In practice, Thai exporters absorb the cost and the money cannot be returned until the anti-dumping penalties expire in two more years.

With the money tied up in the bond, exporters will not have money to buy supplies from farmers, said Mr Aekapoj. Shrimp farmers will also suffer if the cost is passed on to them, he added.