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Warmwater shrimp processing. (Photo: VASEP)
DOC gives green light to investigation into shrimp import subsidies
(UNITED STATES, 1/21/2013)
The US Department of Commerce (DOC) has decided that there is enough evidence to warrant further investigation into subsidies related to imports of frozen warmwater shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand and Vietnam.
The inquiry will cover 117 of the 133 subsidy programmes alleged in petitions presented by the Coalition of Gulf Shrimp Industries (COGSI) and other Gulf of Mexico shrimp processors, who pushed for an investigation into subsidized imports of shrimp from those countries on 28 December, seeking economic relief to compensate for their competitors’ subsidies. The investigation could lead to the imposition of "countervailing duties" on the shrimp exporters.
The US International Trade Commission (USITC) will join the DOC in its examination of the alleged subsidies from 2011, which will cover only frozen warmwater shrimp and prawns packed with marinade, spices or sauce, according to the DOC. The USITC’s role in the investigation will be to decide whether the US shrimp industry has been materially injured or threatened with material injury due to the subsidized shrimp imports, The Times-Picayune reports.
In 2011, total shrimp exports from these seven countries were worth about USD 4.2 billion, the DOC told.
"We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we have determined that these allegations are properly supported by adequate evidence and meet the statutory requirements," the DOC said in a notice.
Last week, the Southern Shrimp Alliance’s (SSA) Ad Hoc Shrimp Industry Committee was named a party to the investigation.
But some in the SSA have expressed fear because the coalition has requested that domestic shrimpers be excluded from injury analysis.
While the Committee advocates for a domestic industry definition that properly encompasses the diversity of the US shrimp industry, the SSA encourages all in the shrimp industry to become involved in the trade case, the SSA consequently wrote in a statement.
The USITC will make its preliminary injury determinations on or before 11 February, and investigations will continue if it concludes that there is a reasonable indication that imports resulted in material injury or a threat to the domestic shrimp industry.
In turn, the DOC will determine if the foreign government provided the subsidies to foreign shrimpers and exporters and, if the USITC gives the green light, it will be scheduled to make its preliminary determinations by 25 March. The DOC could then give a final determination by 6 June and the USITC could make its final decision by 22 July, with any orders issued by 29 July.
Pranee Siriphand, director-general of Thailand’s Foreign Trade Department, said the export of Thai shrimp may be slowed during the investigation, and that the department was determined to help the Thai private sector fight the case, Bangkok Post reports.
Related articles:
- Shrimp industry garners more support in countervailing duty case
- Shrimp sector fights US shrimpers' accusations
- Shrimp farmers are preparing for conflict with the U.S.
By Natalia Real
[email protected]
www.seafood.media
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