July 17, 2008

 

WTO upholds rulings on US shrimp bonds
 
 

The WTO has rejected an appeal from the US, maintaining its ruling that the US measure of imposing cash bonds on imported shrimps is illegal and should be amended.

 

Washington has defended its calculation of taxes but the WTO said the US imposed excessive taxes on imports suspected of dumping.

 

The WTO's top court on Wednesday (July 16, 2008) upheld the majority of previous rulings against the US brought forward by Thailand and India over shrimp imports. The Appellate Body also ruled that an earlier settlement panel was right in rejecting the cash bond requirement imposed on shrimp imports from Thailand and India, as it is one of the specific actions against dumping that are inconsistent with the Anti-Dumping Agreement.

 

In 2004, the US required exporters subject to paying anti-dumping duties to post a cash bond covering the full amount as security if there was a risk of default.

 

Thailand and India complained that the cash bond requirement was against international trade rules and that it imposed excessive burden on exporters who were already paying the anti-dumping duties.

 

Thailand is the main shrimp supplier to the US.

 

Governments impose anti-dumping duties to prevent their markets from being flooded with cheap imports.

Video >

Follow Us

FacebookTwitterLinkedIn