November 3, 2005

US duties on Indian, Thai shrimps to remain

In order to protect domestic producers, a US trade body has voted to keep import duties on shrimps and prawns from India and Thailand.

After a six-month review, the US International Trade Commission (ITC) decided that revoking the existing anti-dumping duties would likely lead to "continuation or recurrence of material injury within a reasonably foreseeable time".

All six commissioners on the panel voted against lifting the duties.

In January this year, the ITC found that US shrimp producers were hurt by shrimp and prawn imports from Brazil, China, Ecuador, India, Thailand and Vietnam, which the Commerce Department said were being sold at less than a fair price in the US.

The ITC then gave the Commerce Department the approval to slap duties of up to 13.42 percent on shrimps from India and 6.82 percent on shrimps from Thailand.

However, the ITC also said that it would study the impact of the December Asian tsunami which hit industries in India, Thailand and Indonesia, and held a "changed circumstances" hearing in April.

However, at the hearing, US shrimp producers argued on the basis of Hurricane Katrina's impact not to ease the duties.

Shrimp is the most popular seafood in the US with an average of 4 pounds consumed per capita per annum. About 90 percent of shrimps consumed are imported and the shrimp market was worth US$4.2 billion in 2004.