February 14, 2013

US investigates duty on shrimp imports from various countries

Investigation on the complaints filed by local shrimp industry representatives will be pursued by the US Department of Commerce (DoC), as imports of subsidised shrimp from seven countries, including India, were hitting the local business, after a trade body agreed with the petitioners.

According to the US Inter-national Trade Commission (USITC), there is a "reasonable indication that the US shrimp industry is materially injured" by imports of frozen warm water shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand and Vietnam.

USITC Chairman Irving A Williamson and Commissioners Shara L Aranoff, Dean A Pinkert, David S Johanson and Meredith Broadbent voted in favour of the affirmative. Only Commissioner Daniel R Pearson voted against it.

As a result of the Commission's affirmative, DoC will continue to investigate imports of shrimp from these countries, a move that could lead to anti-dumping duties on imports.

In the last week of December, the Coalition of Gulf Shrimp Industries, a local industry body, filed petitions seeking relief from the subsidised shrimp imports from these countries. They seek higher countervailing duty (CVD) on imports from these seven countries.

If the US authorities impose higher CVD on shrimp imports, it will badly affect India's seafood export industry, say experts. The US is the largest importer of Indian seafood items in value terms.

USITC sees imports may badly hamper the local shrimp industry, which has 58 producers/processors and around 2,000 workers. In 2011, the US imported shrimp products worth US$4.3 billion from these countries, which is 86% of the total value of shrimp imported that year.

"Now that USITC has taken to further investigate the petition, there is nothing against our industry as of now," said Ravi Reddy, president of the Seafood Exporters Association of India (SEAI). "We hope for a positive decision on the preliminary duty determination, which is due by March 25."

Anwar Hashim, a leading exporter and ex-president of SEAI, however, said imposition of duty would hit exporters.