The Hindu Business Line : US to review dumping duty on Indian shrimp

ANTI-DUMPING duty on shrimp from India and Thailand are under review, according to a ruling of the United States International Trade Commission (USITC).

The USITC has decided to examine whether the changed circumstances stemming from the December 26 tsunami warrants the lifting of anti-dumping tariffs on shrimp exports from these two Asian countries.

The USITC has announced that it has voted 5 to 1 to initiate a rare "changed circumstances" review of its January determination concerning India and Thailand along with Brazil, China, Ecuador and Vietnam.

At the time of its January determination, the Commission had decided to collect information on the impact of the tsunami on the shrimp industry in India and Thailand to see if they would justify reopening of the anti-dumping cases under the changed circumstances scenario.

The Commission has now concluded that such a re-opening is warranted.

The USITC has made it known that if at the end of the current review a determination is made - that ending the anti-dumping duties will likely lead to a continuation of "injury" to domestic producers - the duty currently levied will remain in place.

But if it comes out with a determination that domestic producers are not likely to be affected, then the duty will be rescinded.

The USITC had come under varying degrees of pressure from lawmakers not to reopen the current investigations.

For instance, it is said Mr Jeb Bush, Governor of Florida, had reportedly made the argument that the shrimp industry in Florida had been adversely affected by four hurricanes in 2004 and hence, should not be at a disadvantage by giving concessions to competition from Asia.

But India and Thailand made the point that their tsunami-ravaged shrimp industry posed little threat to domestic producers.

" ... The Commission's decision to conduct changed circumstances reviews is not predictive of the outcome of the reviews. The Commission's decision in the reviews will be based on the factual record developed during the reviews and will determine whether revocation of the existing anti-dumping duty orders on imports of certain frozen warm-water shrimp from India and Thailand would be likely to lead to continuation or recurrence of material injury," the USITC said in a release.

Our Kochi bureau reports: The USITC's decision to review the anti-dumping duty imposed on shrimp imports from India has given a breather to the country's seafood industry.

"It's a very good thing. One hurdle is over (for the industry)," said Mr G. Mohan Kumar, Chairman of the Marine Products Export Development Authority (MPEDA).

The US had earlier slapped an average 9.45 per cent anti-dumping duty on shrimp imports from India.

It invited comments from the seafood industry on the extent of the damage caused by the tsunami, and the Seafood Exporters Association of India (SEAI) furnished the required information.

SEAI says the tsunami has severely damaged the shrimp resources of the Indian coastline. This, coupled with the anti-dumping duty, could lead to the seafood exports falling by about 10-15 per cent in 2004-05 over the previous year.

The Association hired a Washington-based law firm, Willkie Farr & Gallagher, to present its case before the USITC.

"This is a big break for us. We now have to marshal all the data to prove that we have had collateral damage and we are no longer a threat to the US shrimp industry," said Mr A.J. Tharakan, President of SEAI.

The USITC is expected to announce its findings over the next four months. An announcement is expected only in August.

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