December 2, 2004

China Agriculture Group Unhappy with US Shrimp Tariff Decision

A business interest group representing China's agricultural industry is unhappy with the US ruling this week that Chinese shrimp producers are guilty of dumping in the US market.

The US commerce department affirmed on Tuesday an earlier, preliminary finding that Chinese and Vietnamese producers are selling shrimp in the US below cost, a practice known as dumping. The department estimated that Chinese companies are selling below cost at margins between 28% and 113%, while Vietnamese companies are selling at prices between 4% and 26% below fair value.

"The US Department of Commerce's final ruling is extremely unfair," according to the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products.

"The US Department of Commerce has violated US dumping laws as it used prices from substitute countries suggested by the plaintiff which aren't representative (of international prices), and irrationally rejected prices from substitute countries suggested by the Chinese parties," the Chinese group said.

US shrimpers from eight southern states had filed the petition, arguing that increasing imports of farm-raised shrimp are depressing prices and putting them out of business. The Department of Commerce said shrimp imports from China reached a value of $419 million for 2003, nearly tripling since 2001. Imports from Vietnam were worth $587 million in 2003, or 70% higher than in 2001.

If the US International Trade Commission determines the US shrimp industry is suffering financially because of the dumping in a vote expected around Jan. 12, tariffs equal to the dumping margins will be imposed on imports.

Dumping disputes between the US and China have increased in recent years as imports from China have risen rapidly. This has raised concerns over a loss of US jobs and companies closing down or moving their manufacturing operations to other low-cost countries, such as China.