June 15, 2005

Thailand to petition against US shrimp duties
 

Thailand may react to allegations of unfair US trade practices against Thai shrimp by petitioning the World Trade Organisation (WTO), according to the Thai government.

An anti-dumping duty of 5.79-6.82 percent of a shipment's worth was levied on Thai shrimp and a continuous bond was also required.

The continuous bond increased from 10 percent of a shipment's worth to 100 percent of the total anti-dumping charge, which became effective as of March 13 this year.

However, a programme involving US assistance to countries hit by the tsunami disaster including Thailand, has led the government to await final consideration that comes out in October.

Because of the need to shoulder high costs, only six out of forty Thai shrimp exporters who sell to the US have sufficient liquidity to pay double duty charges. The remaining exporters must apply for bank guarantees or suspend exports entirely.