The Hindu Business Line : India for talks with US on shrimp duties

INDIA has asked for a consultation with the US in the World Trade Organisation (WTO) under the Dispute Settlement Mechanism regarding the anti-dumping duties imposed by Washington on shrimp imports from the country.

India informed the WTO that it desires to join the consultations sought by Thailand, another country on which the US has slapped the anti-dumping duties.

"India has substantial trade interest in the consultations on the matter in the dispute, as well as systemic interest in the matter of calculation of dumping margins and other provisions of the Anti-Dumping Agreement," a communication said.

The US Department of Commerce had imposed an average anti-dumping duty of 9.45 per cent shrimp imports from India in December last.

The US International Trade Commission (ITC) subsequently upheld the decision to impose the duties, but said it may review the case of Thailand and India in view of the impact of tsunami on these countries' seafood industries.

Official source now say that any further move by India at the WTO level would hinge on the outcome of the `changed circumstances review' proposed by the US Commission.

"As of now, it is premature to comment (about India's request for consultation at the WTO)" a top official with the Marine Products Export Development Authority (MPEDA) said.

He said a decision as to how to go about with the changed circumstances review by the US Trade Commission would be taken shortly.

The Commission had stated that it would collect information whether the tsunami disaster warrants it to initiate a review.

A communication by WTO says that Thailand has asked for consultations with the US under the dispute settlement mechanism. India, too, has joined Thailand in requesting for a consultation. Brazil, Equador, China, Japan and European Communities have joined them in seeking negotiations.

Consultations and negotiations are the first step of the WTO's dispute settlement mechanism, and the countries have 60 days to settle the issue. If no solution is arrived at, then the affected countries can seek for the appointment of a dispute settlement panel.

The affected nations, particularly India and Thailand, have questioned the US procedure in determining the margin of dumping. To support their case, they have pointed out to the WTO, ruling against the US on the anti-dumping duty it imposed on softwood lumber from Canada. In that ruling, the Dispute Settlement Body had ruled that the US had erred in arriving at the dumping margin through "zeroing". Zeroing is a method wherein a comparison is made between the export price and the normal value of a product in the country of origin.

In fact, Thailand has found fault with the margins, methodologies, calculations and determinations by the US while imposing the duty.

The countries, including India, that have been affected by the levy account for 74 per cent of shrimp imports into the US. The imports are valued at $2.4 billion with Indian imports valued at $400 million.

The US, while finalising the duty, had charged that the dumping margins were 30 per cent to 200 per cent and imports from all the six nations had increased by 50 per cent between 2000 and 2003.

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