U.S. Producers Request Countervailing Duties on Frozen Shrimp from Seven Countries
The Coalition of Frozen Shrimp Industries filed petitions with the International Trade Administration and International Trade Commission Dec. 28, requesting countervailing duties on certain frozen warmwater shrimp from China (C-570-988), Ecuador (C-331-803), India (C-533-854), Indonesia (C-560-825), Malaysia (C-557-814), Thailand (C-549-828), and Vietnam (C-552-815). “Production and exports in the seven countries are fueled by explicit government growth plans and backed by billions of government dollars,” the petition said. Frozen warmwater shrimp from China, India, Thailand, and Vietnam are already subject to antidumping duty orders issued in 2005. An AD order on shrimp from Ecuador was issued at the same time, but subsequently revoked.
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The seven countries covered by these petitions collectively account for 85 percent of U.S. shrimp imports and more than three-quarters of the U.S. market, CFSI said.
“Shrimp is a key export for many of the countries subject to this petition, and government plans to increase the volume of those exports are central to national economic development strategies,” CFSI said in the petition. “These petitions document over $13.5 billion in government support to the fishing and aquaculture industries in these seven countries, with the shrimp industry often leading the sector in each country.” The petitions alleged that 10 to 20 percent of revenue for producers in these seven countries comes from government subsidies. “In addition, a large number of the subsidies documented herein are export subsidies that pose a particularly dire threat to U.S. producers,” CFSI said.
The petitions also alleged injury to U.S. industry, as is required to impose and maintain CV duty orders. According to CFSI, U.S. imports from the seven countries have gained market share since 2009, and the prices at which the imports enter the U.S. market are well below domestic prices. The frequency and intensity of this price undercutting has increased in 2012, causing prices to fall in absolute terms for the first time in years, it said.
The ITA is accepting comments on domestic industry support for the petition to determine whether the petition meets the dual requirements of support by domestic producers or workers accounting for (1) at least 25 percent of the total production of the domestic like product and (2) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petition meets these requirements, among others, the International Trade Administration will initiate CV duty investigations of certain frozen warmwater shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam. Comments are due by about Jan. 17.
Email ITTNews@warren-news.com for a copy of the petition, which is also available on the ITA’s IAACCESS database here.