June 16, 2004

Uncertainty Looms Over Shrimp Exports From India

Uncertainty looms large over shrimp export from India to the United States, as the World Trade Organisation (WTO) panel has deferred its preliminary report on the alleged dumping of wares in the US by India and five other countries by 90 days.

Due to the threat by the US authorities to impose with retrospective effect 80 to 110 percent anti-dumping duty on exports from these countries once dumping is confirmed, many exporters of shrimp here are planning to call it a day.

The proposed anti-dumping duty would make export of shrimp from the country to the US unviable, said sources in the Seafood Exporters Association of India. The annual export of shrimp from India to the US is worth 400 million dollars

"Many of us here will not be in a position to pay the duty," the sources said.

Meanwhile, the Association has already commissioned a US based agency to fight their case at the WTO as the Indian exporters would not like to remain idle until the preliminary report is ready in view of the high stakes.