September 13, 2004

Brazil To Appeal Shrimp Surcharges

American fishermen filed a suit with the United States Department of Commerce against six of the world's largest shrimp producers, who are accused of practicing dumping, that is, selling the product for less than it costs.

American specialists visited three Brazilian companies - Sida, Norte Pesca, and Netuno in August.

In their preliminary report, the specialists specified the surcharge rates for shrimp sold by these companies to be allowed to enter the United States. The final decision on this matter will only be made in December.

The Brazilian companies, however, have already appealed to the United States Department of Commerce to revise the calculations and to exclude Norte Pesca, which had the highest surcharge rate, from the suit.

According to Brazilian Minister Jose Fritsch, of the Special Secretariat of Aquiculture and Fishing, the Brazilian government backs the Brazilian company owners. If the decision is upheld, it will appeal to the World Trade Organization (WTO).

"Brazil does not provide subsidies to shrimp producers. But our shrimp are cheap because they are bred in captivity," Fritsch informed.

Minister Fritsch feels that waiting for the campaign season to end in the United States might be the way to go about seeking a revision or cancellation of the surcharges.

The antidumping suit currently proposes the preliminary application of a 23.66% surcharge on Brazilian shrimp.

"In the heat of the presidential race, this kind of effort would have little impact. After the election, however, it may be possible to reverse the decision," Fritsch speculated.