August 20, 2013

Following the allegations that Malaysian shrimp farmers had an unfair advantage by receiving government subsidy, the government of Malaysia is preparing a response to the accusations that made the US Department of Commerce (DOC) decide to impose duties on the country's shrimp imports.

The Ministry of Agriculture (MOA), the Ministry of International Trade and Industry (MITI) and the industry association have recently joined forces to deal with the recently announced 54.5% imposed on shrimp imports from Malaysia. It is the highest that the DOC set for the five exporter countries affected by the measure.

In 2012, Malaysia exported shrimp to US for US$142 million. In 2011 (the year taken into account by the US DOC investigation), the shrimp exported from Malaysia to the US represented 32.4% of total exports, which were MYR593.59 million (US$181 million), according to the figures given by the Department of Statistics. 

Former Deputy Agriculture and Agro-based Minister Chua Tee Yong thinks the country should appeal against the shrimp duty as he considers it will deeply affect local shrimp farmers. Chua is insisting local authorities talk about the subject with the US government sooner rather than later, hoping a better communication channel will make them come to an agreement, suitable to both parts.

The anti-dumping section of the MITI said, "The special taskforce will counter the allegations made by the petitioner and provide appropriate responses to the questionnaire provided by the US DOC."

The source stated no further comments can be made until the US International Trade Commission (ITC) determines the injury suffered by US shrimp producers. Meanwhile, MITI and MOA will continue to further explore other avenues based on the findings made by US DOC.

The Commerce Department's International Trade Administration division announced it would set countervailing duties at 18.2% for China, 13.5% for Ecuador, 11.1% for India, 54.5% for Malaysia and 7.9% for Vietnam. Thailand and Indonesia exporters weren't imposed any tax.

These anti-subsidy duties will not yet be implemented until the ITC determines the damage that foreign shrimp subsidised imports have caused US shrimp farmers. The agency is expected to announce its final decision on September 19.