September 2, 2013

Bangladesh expects a boost to the country's shrimp industry as the US has imposed an additional compensatory tariffs on several Asian countries exporting shrimps.

To compensate for alleged government subsidies, the US Department of Commerce (DOC) decided to impose countervailing tariffs by mid-August, ranging from 4.52% to 54.5%, on five Bangladesh shrimp industry competitors, among which are India and Vietnam.

"US traders will now look for alternative sources like Bangladesh," said Amin Ullah, president of the Frozen Foods Exporters Association.

Ullah believes that even if their prices are increased by 5% or 10%, local shrimp industry exporters would still be in an advantageous position given that their counterparts would need to offer higher prices to get a profit after having to pay the additional duty.

At the moment, shrimp exporters in Bangladesh are asking for US$7.50/pound (16-20 units) of black tiger shrimp in the US market. However, the price could increase to US$8, Amin added.

Shrimp exports in the country have been gradually increasing since June this year due to falling production in several major exporting nations. Figures rose by 33.91% to US$56.5 million on-year, as reported by the Export Promotion Bureau.

About 35% of Bangladesh's overall shrimp export is bound for the US market. Another 45% goes to the EU and Japan, while Russia and other countries cover the rest, said Ullah.