August 1, 2006

Indian representatives gear up to present shrimp bond case to WTO

India is planning to take up with the World Trade Organisation (WTO) the issue of trade barrier of customs bond over and above the anti-dumping duty imposed by the US on Indian shrimp.

Representatives of the Marine Products Export Development Authority (Mpeda), the and Seafood Exporters Association of India (Seai) met WTO officials in Geneva on Monday to present their complaint on the US shrimp bond.

The customs bond of 10.17 percent on annual turnover on top of an anti-dumping has made business with the US near impossible, according to Seai secretary-general Elias Sait. The bond was causing serious cash flow problems, forcing medium and marginal exporters out of the US market, he added.

Of the 230 exporters shipping shrimp to the US before the imposition of anti-dumping duty in 2004 only about 125 exporters remained.

According to the commerce ministry, the US has collected nearly US$48 million since the ban began. The bond itself forces exporters to fork out around Rs 25 crore (US$56,000) thus hindering operations. 

Mr Sait said that India would take up the bond issue with the WTO in the presence of either representatives of the Southern Shrimp Alliance which moved the petition for imposition of the duty or the US department of commerce.

This was only an initial round of discussions where India would present its case. Based on this, the WTO would form a panel to look into the matter.