November 4, 2005

Thailand appeals against punitive shrimp tariffs by US

Thailand has asked the US to reconsider a US International Trade Commission (ITC) decision to maintain punitive tariffs on Thai shrimp exports. This was despite an earlier appeal to ease the tariffs in light of last year's tsunami devastation on Thailand's shrimp industry.

Thailand's Shrimp Industry Association said that although the ITC had sent teams to investigate, and have verified that the country's shrimp industry was hurt by last year's tsunami, the commission still maintained its decision.

The ITC had voted in favour of maintaining the tariffs and said the antidumping tariffs would remain, until companies in some countries including India and Thailand engaged in fair trade and non-harmful pricing practices.

Thailand's commerce minister Somkid Jatusripitak said European and Asian markets had high demand for Thai shrimp, despite the punitive tariffs by the US, a major market for the country's shrimp.

Shrimp Industry Association said it would also seek relief from the Thai government, while expressing disappointment with the US decision.

Meanwhile, Thailand has filed a complaint with the WTO, saying the US tariffs violated trade rules. India has also threatened to do likewise in response to US punitive tariffs on Indian shrimp exports. The US was India's second-largest shrimp importer after Japan.