March 7, 2008

US issues 15.3 percent of anti-dumping rate to Thai Union Group

The US Department of Commerce has announced the new preliminary shrimp anti-dumping rates for Thai Union Group is 15.3 percent, although the group has expressed optimism that the new rate will have no impact.

The current anti-dumping rate for most Thai shrimp exporters and the group is 5.9 percent. The group's shrimp exporting operations include Thai Union Frozen and Thai Union Seafood.

The new rate was announced after a second annual review by the US department. The group's lawyer from an anti-dumping specialist law firm, however, believes that the department has made an error in calculations in regards to the new rate.

In addition, the preliminary rate is released to provide opportunities for comments, and the US department usually revises its preliminary results and makes significant downward adjustments in the final results.

The final and enforceable anti-dumping rate will only be announced at September 2008, therefore the group do not think the preliminary rate will have any effect on the firm or on consumers.

Shrimp business accounted 20 percent of the group's combined sales of US$1.6 billion, of which 35 percent were shipped to the US.

As the group's US subsidiaries do not rely solely on Thai shrimp imports, and that the group has a broad base of seafood business, the final anti-dumping rate in September is not likely to affect earnings, according to the group.

Still, the group has expressed its disappointment in the preliminary results and it had sent its lawyer to resolve the matter with the US department of commerce before its final report in September.