February 27, 2006

Thai government urged by shrimp farmers to bring US dispute to WTO

More than 30 Thai shrimp farmers have submitted a letter to Deputy Prime Minister Somkid Jatusripitak on Feb 23 asking the government to file suit against the US on its double taxation on Thai shrimp that violates WTO rules.

The group of farmers from different associations was led by Aekpoj Yodpinij, president of the Surat Thani Shrimp Association. The letter claimed that the US anti-dumping curb was unfair, discriminatory and a trade barrier.

Aekpoj said the group supports the Thai government to fight the injustice of the US imposed on weaker countries such as Thailand. He said the US has imposed anti-dumping orders on Thai shrimp since Nov 8, 2005.

He pointed out that in addition to the cash deposit of 5.59 percent for each Thai shrimp import, the Customs Border Protection Agency has imposed double taxation in the form of a continuous bond, which is against WTO rules.

Aekpoj also said the Bryd Amendment which allows US domestic industries to petition against foreign competitors is also against WTO international trade rules.

In addition, he said the US was using continuous bonds as a bargaining tool in the recent Thai-US Free Trade Agreement talks to open up Thailand's finance and banking sectors.

Aekpoj said that it is time for the Thai government to sue the US with the WTO for breaking international trade laws. He added the shrimp farmers in Thailand will give full support for the move and that they only wanted fair trade.