March 18, 2011

 

US lengthens Asia, Brazil shrimp import tax up to 2016

 

 

Shrimp import duties from four Asian nations and Brazil have been extended until 2016, a boost to American fishermen on the Gulf Coast and the Atlantic seaboard hardly hit by hurricanes, a cheap farm-raised shrimp and the BP oil spill.

 

On Tuesday (Mar 15), the US International Trade Commission in Washington voted 5-1 to extend the duties on shrimp from India, Thailand, Brazil, Vietnam and China.

 

The tariffs were initially imposed in 2005 after the ITC found that imports had injured, or were likely to injure, US shrimp processors and fishermen who claimed imports were being dumped on the US market at unfair prices and driving them out of business. The tariffs have netted more than US$186 million for the US industry.

 

C. David Veal, the head of the American Shrimp Processors Association, said the duties would "keep a level playing field in place for US shrimpers."

 

The Southern Shrimp Alliance, a coalition of US shrimpers, said cheap imports severely damaged the domestic industry. The group says shrimp prices fell and fishermen went out of business.

 

"The domestic shrimp industry was on the brink of collapse," said John Williams, head of the alliance. He said the duties shored up the US shrimp market and allowed prices to level off.

 

"Last year's oil spill was just the latest obstacle for the shrimp industry. We've dealt with hurricanes, escalating fuel costs," said Williams.

 

The ITC will come back in early 2015 to review whether extending the duties again are necessary. US shrimp accounts for about 10% of all the shrimp consumed by Americans.

 

Meanwhile, US Senator Mary Landrieu said Customs and Border Patrol had to do a better job of collecting tariffs on importers.