November 5, 2004

US Soy Exports Could Be Affected By Shrimp Tariffs

The imposition of additional duties on shrimp imports from top markets like China and Thailand could have a negative effect on US soybean exports to these countries.

The American Soybean Association (ASA) has warned that the anti-dumping duties could have an adverse impact on the US soy industry. The Department of Commerce will finalise tariffs imposed on frozen and canned warm water shrimp from Thailand, Brazil, India and Ecuador by December 17, and for China and Vietnam by the end of November. The Department had held a preliminary ruling in July.

Brazil stated it would challenge the US duties at the World Trade Organization. Meanwhile, Thailand has threatened to boycott imports of US soybeans and soy meal, which are key ingredients in feed for livestock and shrimp. Thailand accounts for about 26 percent of US shrimp imports and is the largest foreign supplier to the country.

The US shrimp industry accused the countries of selling pond-raised shrimp in the United States at below market prices. Foreign competitors deny this, saying they are more efficient than the Americans, who get shrimp from the sea.

ASA President Neal Bredehoeft has voiced his concern that the imposition of duties would pose problems for soybean exports to Thailand. He urged the Department of Commerce not to impose any further duties on Thai shrimp imports in the final duty determination. 

He further pointed out that US soy farmers could also stand to lose if the duties result in lower shrimp production in China, the world's top soybean importer and the No. 1 market for US soy. This could reduce the country's need for soybeans to produce shrimp feed.

The Commerce Department set duties of up to 112.81 percent on shrimp from Vietnam and China. Thailand was slapped with duties ranging up to 10.25 percent on three companies and a countrywide rate of 6.39 percent. The Commerce Department placed duties ranging up to 27.49 percent on three Indian companies and a countrywide rate of 14.20 percent. Ecuador's rate was set to 7.3 percent.