Shrimp made up 41.7 per cent of Vietnam’s combined seafood exports worth USD 4 billion between January-October. (Photo: Stock File/FIS)

Shrimp exporters appeal to WTO over new US tariffs

VIET NAM
Monday, December 13, 2010, 23:10 (GMT + 9)

The US Department of Commerce (DOC) early this month introduced another punitive, five-year anti-dumping duty on shrimp imported from Vietnam after a sunset review of duties enforced in 2005. The US was worried that Vietnam would continue “dumping” if the tariffs were not imposed.

Since 2005, the US has charged Vietnamese frozen shrimp exporters duties from 2.5 to 25.76 per cent.

Exporters of frozen, warm water shrimp in countries like India, China, Thailand and Vietnam would continue to pay the duties until 2015 if the US succeeds with its plan.

But Vietnam will be appealing to the World Trade Organisation (WTO) in 2011 to challenge the tariff which the organisation could overturn that same year, reports Thanhien News.

According to Truong Dinh Hoe, secretary general of the Vietnam Association of Seafood Exporters and Processors (VASEP), local exporters opposed DOC’s reinstatement.

Last February, Vietnam filed a complaint with the WTO concerning shrimp duties imposed by the US. The move symbolises Vietnam’s official dispute since it became a member of the organisation in 2007.

Vietnam requested that WTO rule regarding the US’s method of calculating antidumping duties, or “zeroing,” a system criticised by WTO courts and rejected by all other organisation members.

To rule on Vietnam’s complaint, WTO Director General Pascal Lamy has appointed a three-member panel made up of Mohammad Saeed, counsellor at Pakistan Mission to the WTO Geneva, Deborah Milstein from the Israel’s Ministry of Industry, Trade and Labour and Ian Sandford, special counsel and director of the International Trade Group of Australia

“We hope the WTO court will issue a fair verdict as it did with previous cases,” Hoe stated.

He said that Vietnam is still providing the organisation with data and evidence about the tariffs.

In 2008, the court ruled against the US regarding complaints filed by Thailand and India, Hoe told, which had asked the WTO to disallow zeroing.

If the WTO rules in favour of Vietnam, the US tariffs would be lowered to little or nothing, Hoe said.

Vietnam exported some 200,000 tonnes of shrimp worth USD 1.7 billion in the first ten months of this year - a 12.9 per cent climb in volume and 22.5 per cent in value year-on-year, said VASEP.

The organisation said shrimp made up 41.7 per cent of Vietnam’s combined seafood exports worth USD 4 billion between January and October.

Related articles:

- DOC lowers shrimp exporters' anti-dumping tariffs 
- Anti-dumping duty rates violate agreement: VASEP

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

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