Thai frozen shrimp. ASPA is looking to make sure the money received by the SSA goes to the domestic shrimp industry. (Photo: Stock File)

Shrimp group condemns proposed settlement

UNITED STATES
Monday, January 04, 2010, 17:30 (GMT + 9)

The American Shrimp Processors Association (ASPA) has condemned the proposed settlement and revocation of the anti-dumping order on imported Thai shrimp. ASPA believes domestic shrimp industry representative Southern Shrimp Alliance (SSA) is harming the US shrimp industry in a bid to make money.

The Thai Frozen Foods Association (TFFA) and SSA announced a settlement proposal on 2 November that excluded details on the amount of money SSA would receive or what it would do with it. The two associations filed a joint request for a changed circumstances review at the Department of Commerce on 12 November to effectuate the proposed settlement.

This was rejected on 18 November, soon after the ASPA filed its opposition, because, the department said, the SSA does not represent the whole domestic shrimp industry. SSA continues seeking support and is running an informational campaign in Louisiana and the Gulf South with documents supposedly describing the capital available under the settlement, but not how that money would be distributed.

SSA previously settled administrative review requests in exchange for as much as USD 18 million. ASPA believes that SSA has not distributed any of it directly to its members or the domestic industry.

SSA’s tax forms say it paid USD 6.456 million in legal fees for 2007 and 2008. It will be out of funds by 2010.

The shrimp alliance’s campaign to seek support includes flyers that suggest the industry would only receive USD 60 million through Byrd distributions on entries from Thailand, while a minimum of USD 100 million would be available for distribution through a settlement. But ASPA estimates it as high as USD 117 million.

SSA also said the US Government would forfeit about USD 120 million in funds that would be refunded to Thailand under the settlement.

ASPA is working closely with its Congressional representatives to make sure the money goes to help the domestic shrimp industry instead. The proposed settlement comes at a time when Thailand has stockpiles of excess shrimp that will soon enter the US market without anti-dumping duties.

“Our market is already in dire straits due to continued unfair trade practices by some of our trading partners,” said David Veal, Executive Director of ASPA. “Removing the order on shrimp from Thailand will further depress our market at a time when harvesters and processors are fighting for market share and reasonable prices.”

The lobbying firm of former Senators John Breaux and Trent Lott is assisting SSA. According to the Centre for Responsive Politics, a non-partisan group that tracks lobbying fees and federal campaign contributions, the Breaux-Lott firm reported lobbying income of USD 515,000 from SSA for 2007 and 2008, and SSA agreed to pay them USD 1 million if the settlement is successfully brokered.

ASPA said the two former Senators prefer to earn lobbying fees over helping the US shrimp industry.

Related articles:

- Shrimp exports value shoots up to nearly USD 3 bln
- Thai Union Frozen sees doubled Q2 profit
- Govt seeking alternative to anti-dumping duties

By Natalia Real
[email protected]
www.seafood.media

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