April 2, 2007

Thailand files complaint with WTO on US shrimp import duty

Thailand last week brought up its grievances over the US anti-dumping duty on Thai shrimp to the World Trade Organization, crying unfair trade.

In response, the WTO will allow both parties to give their opinions in early-May, before opening up the hearing to third-party comments later in the month. The final report is expected to be out by November.

Thailand has questioned the US's 'zeroing' method of determining anti-dumping rates, and said shrimp exporters were overcharged from procedures for paying the levies. The US also requires a continuous bond on shrimp exports from countries subject to anti-dumping duties of 5.79 to 6.82 percent of a shipment's value.

Winichai Chaemchaeng, Thailand's deputy director-general of the Trade Negotiations Department, expressed confidence in the petition's success as WTO panels have earlier found that zeroing led to inflated margins of dumping, and hence higher duties.

Chaemchaeng expects the WTO to reach a final ruling on the petition in 12 to 14 months.

While a positive ruling for Bangkok might persuade Washington to phase out its existing practices and hence benefit other shrimp-exporting countries, there is no guarantee that the US would comply with such a ruling. 

Much is at stake for Thai shrimp exporters, as 55 percent of their products were shipped to the US last year with a worth of US$519.8 million.